Question

20)Product costs:
1. include only the prime costs of manufacturing a product.
2. include only the conversion costs of manufacturing a product.
3. are expensed when products become part of finished goods inventory.
4. are regarded as assets before the products are sold.
5. exclude fixed factory overhead.

21)Dividends in arrears:
1. Must be disclosed in the notes to the financial statements.
2. Must be reported in the liabilities section of the balance sheet.
3. Are expenses that are reported on the income statement.
4. Are associated with preferred stock which has a current dividend preference.
5. Are paid to shareholders of common stock

23)A company has 10 manufacturing plants. Which one of the following would be
considered a direct cost for a particular plant?
1. President’s salary
2. Research and development costs
3. Wages of assembly line workers
4. Cost of market research survey
5. Cost of advertising

Answer 1