Concepts and terminology
From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:
a. An example of factory overhead is (sales office depreciation, plant depreciation).
b. The plant manager’s salary would be considered (direct, indirect) to the product.
c. Materials for use in production are called (supplies, materials inventory).
d. Direct materials costs combined with direct labor costs are called (prime, conversion) costs.
e. 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).
f. The wages of an assembly worker are normally considered a (period, product) cost.
g. Short term plans are called (strategic, operational) plans.