Textbook Problem

From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:

1. a. A product, sales territory, department, or activity to which costs are traced is called a (direct cost, cost object).
2. b. Advertising costs are usually viewed as (period, product) costs.
3. c. Factory overhead costs combined with direct labor costs are called (prime, conversion) costs.
4. d. Feedback is often used to (improve, direct) operations.
5. e. A sacrifice made to obtain some benefit is a (cost, expense).
6. f. The balance sheet of a manufacturer would include an account for (cost of goods sold, work in process inventory).
7. g. The implementation of automatic, robotic factory equipment normally (increases, decreases) the direct labor component of product costs.