12) Indirect costs such as rent, telephone, and depreciation are always costs of the period in which they are incurred and are not associated with inventories. 13) Under GAAP, only manufacturing costs...

12) Indirect costs such as rent, telephone, and depreciation are always costs of the period in which they are incurred and are
not
associated with inventories.

13) Under GAAP, only manufacturing costs can be assigned to inventories in the financial statements.

14) The two terms that managers use to describe cost classifications in manufacturing costing systems are prime costs and conversion costs.

15) As information gathering technology improves, companies can add more and more direct-cost categories.

16) Conversion costs represent all manufacturing costs incurred to convert direct materials into finished goods.

17) Direct manufacturing labor costs are only a part of prime costs.