ACCT2320 - CH.2 TOP HAT

Oil used to lubricate a machine - is this a direct material

• yes

• no

Oil used to lubricate a machine - is an example an _ (or moh)

Security guard for the factory - is this a direct material?

• yes

• no

Security guard for the factory - is an example of an

CEO's salary is an example of _

Which of the following would be
considered to be manufacturing
overhead at Boeing (an airplane
manufacturer)?

• wages of the CEO

• sales commisions

• cost of a flight recorder (black box) in a Boeing 767

• wage of a production shift supervisor

A power failure occurs during one of several production jobs.
The idle time that results from it should be classified as:

• direct labour

• manufacturing overhead

A specific job required idle time caused by waiting for
material as a result of a specification change by the customer.
This should be classified as:

• direct labour

• manufacturing overhead

Which of the following costs would be
considered a period cost for a manufacturing
company?

• manufacturing equipment depreciation

• sales staff salaries

• direct material costs

• electrical costs to light the production facility

factory heating costs

• period cost

• product cost