What is File: 16e_GNB_CH01TB, Chapter 1, Managerial Accounting and Cost Concepts
True/False
[QUESTION]
1. A factory supervisor's salary would be classified as an indirect cost with respect to a unit of product.
Answer: T
Difficulty: 2 Medium
Learning Objective: 01-01
Topic Area:
Blooms: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
2. A direct cost is a cost that can be easily traced to the particular cost object under consideration.
Answer: T
Difficulty: 1 Easy
Learning Objective: 01-01
Topic Area:
Blooms: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
3. A cost can be direct or indirect. The classification can change if the cost object changes.
Answer: T
Difficulty: 2 Medium
Learning Objective: 01-01
Topic Area:
Blooms: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
4. Wages paid to production supervisors would be classified as manufacturing overhead.
Answer: T
Difficulty: 1 Easy
Learning Objective: 01-02
Topic Area:
Blooms: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
5. Selling costs are indirect costs.
Answer: F
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