Task Team of FUNdaMENTAL aCCOUNtIng School of Business. Sun Yat-sen University B. Product cost C. Manufacturing cost D. Selling expense 3. The cost of fire insurance for a manufacturing plant is generally considered to be which of the A. Variable cost B. Period cost C. Product cost D. All of the above 4. Which of the following would noT be considered a period cost? A. The salary of the company president's secretary B Depreciation of a machine used in manufacturing C Sales commissions D. The cost of a general accounting office 5. The salary of the president of a manufacturing company would be classified as which of the A. Product cost B. Direct labour C. Manufacturing overhead 6. Manufacturing overhead consists of which of the following? A. All manufacturing costs B. Indirect materials but not indirect labour C. All manufacturing costs eXCept direct materials and direct labour. D. Indirect labour but NoT indirect materials 7. Which of the following costs is often important in decision making but is omitted from conventional accounting records? A. Fixed cost B. Opportunity cost C. Sunk cost D. Indirect cost 8. Which of the following companies is most likely to use a job-order costing system rather than a process costing syste A. Fast food restaurant B. Crude oil refinery C Shipbuilder D Candy maker 9. In a job-order costing system, when a job remains incomplete at the end of a period, how is the amount of overhead cost that has been applied to that job treated? A. It is deducted on the Income Statement as overapplied overhead B. It is part of the ending balance of the Work in Process inventory account C. It is closed out to Cost of goods sold D. It is transferred to finished goods 10. What is a cost driver?Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University B. Product cost. C. Manufacturing cost. D. Selling expense. 3. The cost of fire insurance for a manufacturing plant is generally considered to be which of the following? A. Variable cost. B. Period cost. C. Product cost. D. All of the above. 4. Which of the following would NOT be considered a period cost? A. The salary of the company president's secretary. B. Depreciation of a machine used in manufacturing. C. Sales commissions. D. The cost of a general accounting office. 5. The salary of the president of a manufacturing company would be classified as which of the following? A. Product cost. B. Direct labour. C. Manufacturing overhead. D. Period cost. 6. Manufacturing overhead consists of which of the following? A. All manufacturing costs. B. Indirect materials but NOT indirect labour. C. All manufacturing costs, EXCEPT direct materials and direct labour. D. Indirect labour but NOT indirect materials. 7. Which of the following costs is often important in decision making, but is omitted from conventional accounting records? A. Fixed cost. B. Opportunity cost C. Sunk cost. D. Indirect cost. 8. Which of the following companies is most likely to use a job-order costing system rather than a process costing system? A. Fast food restaurant B. Crude oil refinery C. Shipbuilder D. Candy maker 9. In a job-order costing system, when a job remains incomplete at the end of a period, how is the amount of overhead cost that has been applied to that job treated? A. It is deducted on the Income Statement as overapplied overhead. B. It is part of the ending balance of the Work in Process inventory account C. It is closed out to Cost of Goods Sold. D. It is transferred to Finished Goods. 10. What is a cost driver?