Select the incorrect statement regarding costs and expenses A. Some costs are initially recorded as expenses while others are initially recorded as assets. B. Expenses are incurred when assets are used to generate revenue. C. Manufacturing-related costs are initially recorded as expenses. D. Non-manufacturing costs should be expensed in the period in which they are incurred. Rock Creek Bottling company pays its production manager a salary of $6,000 per month. Salespersons are paid strictly on commission at $1.50 20 for each case of product sold. For Rock Creek Bottling Company, the salespersons commissions are an example of: A. a fixed cost. B. a variable cost. C. a mixed cost. D. None of these. _____ Overhead costs: A. Cannot be traced to cost objects in a cost-effective manner, but are instead allocated to cost objects. B. Cannot be allocated to cost objects. C. Are always variable costs. D. Are only incurred by manufacturing companies. _____ Preston Company has three divisions. The company should consider a cost to be a direct cost of a division if: A. It meets guidelines imposed by generally accepted accounting principles. B. It can be traced to a division in a cost-effective manner. C. It is a variable cost