Reference no: EM132709882

Problem 1: Costs which are inventoriable are

a. all costs associated with manufacturing other than direct labor costs and raw material costs

b. costs which are associated with marketing, shipping, warehousing, and billing activities

c. manufacturing costs incurred to produce units of output.

d. the sum of direct labor costs and all factory overhead costs.

Problem 2: The term variable costs refers to

a. all costs which are associated with marketing, shipping, warehousing, and billing activities.

b. all costs fluctuate in total in response to small changes in the rate of utilization of capacity

c. all costs which are likely to respond to the amount of attention devoted to them by a specified manager

d. all costs which do not change in total for a given period of time and relevant range but become progressively smaller on a per unit basis as volume increases