Chapter 1, Problem 5E

Concepts and terminology

From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:

• A. Advertising costs are usually viewed as (period, product) costs.
• B. Feedback is often used to (improve, direct) operations.
• C. Payments of cash or the commitment to pay cash in the future for the purpose of generating revenues are (costs, expenses).
• D. A product, sales territory, department, or activity to which costs are traced is called a (direct cost, cost object).
• E. The balance sheet of a manufacturer would include an account for (cost of goods sold, work in process inventory).
• F. Factory overhead costs combined with direct labor costs are called (prime, conversion) costs.
• G. The implementation of automatic robotic factory equipment normally (increases, decreases) the direct labor component of product costs.