Match each of the following terms with the appropriate definition.________ (1) Direct materials________ (2) Indirect costs________ (3) Product costs________ (4) Prime costs________ (5) Fixed costs________ (6) Direct labor________ (7) Period costs________ (8) Conversion costs________ (9) Factory overhead________ (10) Variable costs(a) Costs that are expensed to the income statement in the period incurred..(b) Costs that change in proportion to changes in volume of activity.(c) The efforts of employees who physically convert materials to finished products.(d) Manufacturing costs that cannot be separately or readily traced to finished goods.(e) Costs necessary to create a product..(f) Costs incurred in the process of converting raw materials to finished

Question

products; include direct labor and factory overhead.(g) Tangible components of a finished product separately and readily traced through the manufacturing process.(h) Costs directly associated with the manufacture of finished products; include direct materials and direct labor.(i) Costs that do not change in total with changes in the volume of activity.(j) Costs that cannot be easily and cost-beneficially traced to a single cost object.

What will be an ideal response?

Answer 1

1. G; 2. J; 3. E; 4. H; 5. I; 6. C; 7. A; 8. F; 9. D; 10. B