Question 1 (1 point)

Cost tracing is

Question 1 options:

	a function of cost allocation.
	the assignment of both direct and indirect costs associated with a cost object.
	the process of determining the actual cost of the cost object.
	the assignment of direct costs to the chosen cost object.

Question 2 (1 point)

A lawn mowing business would be classified as a

Question 2 options:

	wholesale company.
	service company.
	merchandising company.
	manufacturing company.

Question 3 (1 point)

________ information is that which differs between alternatives and can affect the future.

Question 3 options:

	Historical
	Relevant
	Predictable
	Irrelevant

Question 4 (1 point)

The balance sheet of a service company has

Question 4 options:

	two categories of inventory.
	raw materials inventory
	three categories of inventory.
	little or no inventory.

Question 5 (1 point)

________ costs include all costs associated with the production of a product.

Question 5 options:

	Inventoriable
	Overhead
	Mixed
	Direct

Question 6 (1 point)

If a company wants to determine a product's cost, they must assign only direct costs.

Question 6 options:

	True
	False

Question 7 (1 point)

Depreciation on a factory would be classified as a cost in which part of the value chain?

Question 7 options:

	Distribution
	Research and development
	Design
	Production

Question 8 (1 point)

Which type of company typically produces its own inventory?

Question 8 options:

	Wholesaler
	Service company
	Retailer
	Manufacturer

Question 9 (1 point)

Conversion costs consist of

Question 9 options:

	direct labour and manufacturing overhead.
	direct materials and direct labour.
	direct materials and manufacturing overhead.
	direct materials, direct labour and manufacturing overhead.

Question 10 (1 point)

All of the components of manufacturing from research and development through customer service after the sale are part of a firm's value chain.

Question 10 options:

	True
	False