A cost object is: Multiple Choice an item for which managers are trying to determine the cost. an item to which managers must directly trace costs. an item to which it is not worth the effort of tracing costs. an item for sale by a business. Prev 1 of 20 PRE Next > Variable costs are: Multiple Choice costs that are not worth the effort to trace to a specific cost object costs that change, in total, in direct proportion to changes in activity levels. always irrelevant. costs that remain constant no matter the activity level Which of the following is an example of a variable cost for a manufacturing firm? Multiple Choice The cost of rent on the factory. The cost of factory supervision. The cost of raw materials. The cost of depreciation on equipment. For a cost to be relevant, it must: Multiple Choice differ between decision alternatives. have already been incurred. not influence a decision. not be a differential cost. A fixed cost: Multiple Choice goes up in total when activity increases. goes up per unit when activity increases. goes down in total when activity increases. goes down per unit when activity increases. Manufacturing costs are generally classified into which of the following categories? Multiple Choice Relevant costs and irrelevant costs Direct materials, direct labor, and manufacturing overhead Prime costs and conversion costs Conversion costs, marketing costs, and administrative costs