From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:a. The phase of the management process that uses process information to eliminate the source of problems in a process so that the process delivers the correct product in the correct quantities is called (directing, improving).b. Direct labor costs combined with factory overhead costs are called (prime, conversion) costs.c. The salaries of salespeople are normally considered a (period, product) cost.d. The plant manager’s salary would be considered (direct, indirect) to the product.e. Long-term plans are called (strategic, operational) plans.f. Materials for use in production are called (supplies, materials inventory).g. An example of factory overhead is (electricity used to run assembly line, CEO salary).

Question
Asked Jan 9, 2020
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From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:
a. The phase of the management process that uses process information to eliminate the source of problems in a process so that the process delivers the correct product in the correct quantities is called (directing, improving).
b. Direct labor costs combined with factory overhead costs are called (prime, conversion) costs.
c. The salaries of salespeople are normally considered a (period, product) cost.
d. The plant manager’s salary would be considered (direct, indirect) to the product.
e. Long-term plans are called (strategic, operational) plans.
f. Materials for use in production are called (supplies, materials inventory).
g. An example of factory overhead is (electricity used to run assembly line, CEO salary).

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Expert Answer

Step 1

Period costs: 

Period costs are the costs other than the product costs. These costs are not incurred in manufacturing the goods. These costs include the administrative expenses, and selling expenses.

Conversion cost: 

A conversion cost refers to the cost of converting the raw materials into a finished product. Conversion cost includes direct labor as well as factory overhead costs.

Step 2

The appropriate term for completing each of the following sentences:

Accounting homework question answer, step 2, image 1
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Step 3

Explanation:&...

Accounting homework question answer, step 3, image 1
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