10 direct materials can be classified as a part of

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10. Direct materials can be classified as a part of manufacturing cost and prime cost. 11. Variable cost remains constant on a per unit basis as the number of units produced increases. 12. An opportunity cost is the benefit forgone by selecting one alternative instead of another. 13. Job-order costing is more likely to be used than process costing in situations where many different products or services are produced each period to customer specifications. 14. Job-order costing is used in manufacturing companies and process costing is used in service firms. 15. Modern technology is causing shifts away from variable costs toward more fixed costs in many industries. 16. A mixed cost is partially variable and partially fixed. 17. Activity-based costing uses a number of activity cost pools, each of which is allocated to products on the basis of direct labour hours. 18. An activity-based costing system is generally easier to set up and run than a traditional cost system. 19. Future costs that do NOT differ among the alternatives are not relevant in a decision.
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