Is the changeover cost categorized as a direct or an indirect product cost?Freight costs incurred in shipping products to customers is properly referred to as a product rather than period cost of the selling company. a. True. b. False.
The Billings on Construction in Progress account is a(n): a. contract revenue account. b. inventory account. c. contra-inventory account. d. construction expense account.
A manufacturing company’s cost of goods sold includes only product costs. a. True. b. False.
Period costs include all selling and administrative costs, both variable and fixed. a. True. b. False.
Which of the following would not be classified as a product cost? A. Direct materials. B. Direct labor. C. Indirect materials. D. Sales commissions.
Which of the following is not a period cost? A. Legal B. Public relations costs. C, Sales commissions. D. Wages of assembly-line workers.
