BUS 262 Mid Term SHORT ANSWER. Write the word or phrase that best completes each statement or 12) What are the three types of inventories that are earried by manufacturers? Describe each type answers the question. of inventory. 13) Identify and describe the three categories of manufacturing costs. 14) What is a cost accounting system? What are the two basic types of cost accounting systems? 15) Describe what happens to the income of a company under each of the following assumptions: (a) Units sold are less than break-even units. (b) Units sold are greater than break-even units. (c) Units sold are equal to the break-even units. 16) Define the break-even point of a company. 17) Describe and compare the three cost estimation methods used to develop a cost equation