Multiple Choice Questions (Circle the best answer-1 point for each correct answer): 4. cost object is: A. Always a product being manufactured by a specific company. B. Never a specific customer or supplier. C. A concept used only in product costing. D Anything for which cost data are desired. 5. An indirect cost is a cost that: A. Can be traced directly to the cost object. B. Is usually identified only when costing a product and never for selling or administrative expenses. C Cannot be traced easily and conveniently to a specific cost object. D. Is never a product cost. 6. Which of the following statements is correct? A. A particular cost may be direct or indirect depending on the cost object. B. Once a specific cost is identified as a direct cost, it is a direct cost for all cost objects. C. A cost can be a direct or indirect cost for only cost objects related to manufacturing processes and never for cost objects in service companies. D. Both B and C. 7. Which of the following options correctly indicates how glue used in a manufacturing process would be classified? A. B. Direct Material No No Yes Yes Indirect Material Yes Yes No No Product Cost No Yes No Yes