When Managerial Accountants Assign Costs to the Production of Specific

question 16

Multiple Choice

When managerial accountants assign costs to the production of specific products, which of the following costs are easiest to assign?

• A) insurance premiums and depreciation expenses
• B) property taxes and income taxes
• C) direct labour and direct materials costs
• D) general maintenance expenses and direct labour

---

Definitions:

Supervision

The act of overseeing work performance and activities to ensure that goals are met and policies are followed.

Overhead Applied

The method of assigning a portion of indirect costs to specific production jobs or departments based on a predetermined rate.

Raw Materials

Basic materials that are used in the manufacturing process to produce finished goods.

Direct Labor

The wages and other compensation paid to workers who are directly involved in the production of goods or the delivery of services.