1A–2 Perhaps your most important post-graduation objective is to get a job. Describe some
control activities that you would pursue to help achieve this objective.
Chapter 2. Page 51
2–a What are the three major elements of product costs in a manufacturing company?
2–b Define the following: (1) direct materials, (2) indirect materials, (3) direct labor,
(4) indirect labor, and (5) manufacturing overhead.
2–c Explain the difference between a product cost and a period cost.
2–d Distinguish between (1) a variable cost, (2) a fixed cost, and (3) a mixed cost.
2–e What effect does an increase in volume have on—
1. Unit fixed costs?
2. Unit variable costs?
3. Total fixed costs?
4. Total variable costs?