Match the following terms with the appropriate definition.
A) Costs that change in proportion to changes in volume of activity.
B) Expenditures incurred in the process of converting raw materials to finished products; include direct labor and factory overhead.
C) The efforts of employees who physically convert materials to finished products.
D) Costs that are incurred for the benefit of more than one cost object.
E) Expenditures necessary and integral to finished products.
F) Manufacturing expenditures that cannot be separately or readily traced to finished goods.
G) Costs that flow directly to the current income statement as expenses.
H) Expenditures 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) Tangible components of a finished product separately and readily traced through the
manufacturing process.
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
1. J) Tangible components of a finished product separately and readily traced through the
manufacturing process.
2. D) Costs that are incurred for the benefit of more than one cost object.
3. E) Expenditures necessary and integral to finished products.
4. H) Expenditures directly associated with the manufacture of finished products; include direct materials and direct labor.
5. I) Costs that do not change in total with changes in the volume of activity.
6. C) The efforts of employees who physically convert materials to finished products.
7. G) Costs that flow directly to the current income statement as expenses.
8. B) Expenditures incurred in the process of converting raw materials to finished products; include direct labor and factory overhead.
9. F) Manufacturing expenditures that cannot be separately or readily traced to finished goods.
10. A) Costs that change in proportion to changes in volume of activity.
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