Unformatted text preview: unit basis. __FALSE _____ 6.All of the following are examples of opportunity costs : salary given up to start a business; rental income given up when you live in a house you own; and interest income that could be earned on money spent for a car. MC Questions: (2 points each) 1. The one cost that would be classified as part of the both the prime cost and conversion cost would be: A.) direct material. B.) indirect material. C.) direct labor. D.) indirect labor. The answer is __ C _____. 2. The cost of the cushions that are used to manufacture sofas can be best described by which of the following “cost” terms? A.) Manufacturing Overhead Cost. B.) Conversion Cost. C.) Period Cost. D.) Variable Cost. The answer is __ B _____....
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This note was uploaded on 06/26/2009 for the course ACC 400 taught by Professor Kim during the Summer '08 term at Grossmont.
- Summer '08
- Managerial Accounting