Question 1A Which of the following is never included in product cost? a overhead

Question

Question 1A
Which of the following is never included in product cost?

a overhead

b direct materials

c variable selling expense

d fixed factory overhead

e direct labor




Question 1B
Fixed costs that are jointly caused by two or more segments are:

a direct fixed costs.

b common fixed costs.

c total fixed costs.

d avoidable fixed expenses.

e traceable fixed expenses.



Question 1C
Section R had ROI of 15% last year. The manager of Division A is considering an additional investment for the coming year. What step will the manager likely choose to take?

a accept the investment as long as it provides positive operating income

b accept the investment as long as its ROI is positive

c reject the investment if it returns more than 15% ROI

d reject the investment if it returns less than 15% ROI

e reject the investment if it returns an ROI equal to 15%

Explanation / Answer

Which of the following is never included in product cost? c. variable selling expense Question 1B Fixed costs that are jointly caused by two or more segments are: b common fixed costs. Question 1C. I think b. but not 100% sure. Please, rate! Thank you.

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