Reference no: EM132841438

Problem 1: Manufacturing costs are also known as product costs. Which of the following best describes those costs which are considered to be manufacturing costs?

Select one:

a. Direct materials, direct labor, and factory overhead

b. Direct materials and direct labor only

c. Direct materials, direct labor, factory overhead, and administrative overhead

d. Direct labor and factory overhead.

Problem 2: With the top-down budgeting approach the budget:

Select one:

a. Process begins with the issuance of general budget guidelines by top management or a budget committee.

b. Developmental process centers on lower-level employee participation.

c. Is imposed on lower-level personnel who do not become involved in the budget construction process in a significant way.

d. Is not characterized by sound budget preparation practices.