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In the Spaces Provided, Write the Letter of the Definition

Question 67

Matching

In the spaces provided, write the letter of the definition for each of the following terms:

Premises:
Period costs
Indirect costs
Manufacturing overhead
Direct labor
Differential cost
Product costs
Direct materials
Indirect labor
Indirect materials
Direct costs
Responses:
Materials that are necessary in manufacturing a product or service, but are not directly included in the actual product.
Costs normally incurred for the benefit of several segments.
Costs associated with products or services offered.
Costs that are specifically traceable to a unit of business.
Costs not directly related to a product, service, or asset that are charged as expenses as they are incurred.
All costs incurred in the manufacturing process other than direct labor and direct materials.
Wages paid to those who physically work on a product or service.
Materials that become part of the product and are traceable to it.
A future cost that can be changed by a decision made now.
Labor that is necessary in manufacturing a product or service but is not directly related to the actual production or service.

Correct Answer:

Period costs
Indirect costs
Manufacturing overhead
Direct labor
Differential cost
Product costs
Direct materials
Indirect labor
Indirect materials
Direct costs
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