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MAS Cost Concept MC2
MAS Cost Concept MC2
a. Direct materials
b. Direct costs
c. Raw materials
d. Any of the above
9. It refers to raw materials that become an integral part of the finished product and whose costs can be
conveniently traced to the finished product.
a. Direct materials
b. Indirect materials
c. Raw materials
d. Any of the above
10. It consists of labor costs that can be easily traced to individual units of product. It is sometimes called touch
labor because direct labor workers typically touch the product while it is being made.
a. Indirect labor
b. Direct labor
c. Manufacturing overhead
d. Any of the above
11. It is the sum of direct materials cost and direct labor cost.
a. Total direct costs
b. Prime costs
c. Conversion costs
d. Any of the above
12. It includes all manufacturing costs except direct materials and direct labor. It includes a portion of raw
materials and known as indirect materials as well as indirect labor.
a. Manufacturing overhead
b. Prime costs
c. Conversion costs
d. Any of the above
13. These are raw materials whose costs cannot be easily or conveniently traced to finished products.
a. Indirect costs
b. Factory overhead
c. Indirect materials
d. Any of the above
14. These refers to employees that play an essential role in running a manufacturing facility; however, the cost of
compensating these people cannot be easily or conveniently traced to specific units of product.
a. Indirect labor
b. Direct labor
c. Factory overhead
d. Any of the above