Answer false explanation inventoriable costs are

Answer: FALSE
Explanation: Inventoriable costs are reported as an asset when incurred and expensed on
the income statement when the product is sold.
Diff: 2
Objective: 5
AACSB: Application of knowledge
61) All manufacturing costs are period costs.
Diff: 2
Objective: 5
AACSB: Analytical thinking
62) All costs reported on the income statement of a service-sector company are
inventoriable costs.
Diff: 1
Objective: 5
AACSB: Analytical thinking

63) Period costs are included in the cost of goods sold.
Diff: 2
Objective: 5
AACSB: Analytical thinking
64) Indirect manufacturing costs are also referred to as manufacturing overhead costs or
factory overhead costs.
Diff: 1
Objective: 5
AACSB: Analytical thinking
65) Whippany manufacturing wants to estimate costs for each product they produce at its
Troy plant. The Troy plant produces three products at this plant, and runs two flexible
assembly lines. Each assembly line can produce all three products.
Required:
a. Classify each of the following costs as either direct or indirect for each product.
b. Classify each of the following costs as either fixed or variable with respect to the
number of units produced of each product.
Direct Indirect Fixed Variable
Assembly line labor wages ________ ________ ________ ________
Plant manager's wages ________ ________ ________ ________
Depreciation on the assembly
line equipment ________ ________ ________ ________
Component parts for the product ________ ________ ________ ________
Wages of security personnel for the
factory ________ ________ ________ ________
Answer: Direct Indirect Fixed Variable
Assembly line labor wages X X
Plant manager's wages X X
Depreciation on the assembly line equipment X X
Component parts for the product X X
Wages of security personnel for the factory X X
Diff: 2
Objective: 2, 4, 5
AACSB: Application of knowledge

66) What are the three types of manufacturing cost?