Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 48

Concepts and terminology
From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:
a. The phase of the management process that uses process information to eliminate the source of problems in a process so that the process delivers the correct product in the correct quantities is called (directing, improving).
b. Direct labor costs combined with factory overhead costs are called (prime, conversion) costs.
c. The salaries of sales people are normally considered a (period, product) cost.
d. The plant manager's salary would be considered (direct, indirect) to the product.
e. Long-term plans are called (strategic, operational) plans.
f. Materials for use in production are called (supplies, materials inventory).
g. An example of factory overhead is (electricity used to run assembly line, CEO salary).