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A). In a manufacturing firm, costs incurred to research a more fuel efficient engine would be classified as
Multiple Choice
a. upstream costs
b. midstream costs
c. downstream costs
d. both midstream and downstream costs
B). The costs incurred to sell a product would be classified as
Multiple Choice
a. upstream costs
b. midstream costs
c. downstream costs
d. none of the above
C). The primary difference between cost classification for a manufacturing firm versus a merchandising firm is
Multiple Choice
a. All costs for a merchandising firm are downstream costs for a manufacturing firm.
b. All downstream costs for a merchandising firm are midstream costs for a manufacturing firm.
c. All midstream costs for a merchandising firm are upstream cost for a manufacturing firm.
d. All costs for a manufacturing firm are midstream costs for a merchandising firm.
D). The primary difference between midstream costs incurred at a manufacturing firm versus a service firm is
Multiple Choice
a. Inventory at a service company can be stored for future use as opposed to being immediately consumed at a manufacturing firm.
b. Costs that would ordinarily be classified as upstream in a manufacturing firm would be classified as downstream in a service firm.
c. Inventory at a service company is consumed immediately as opposed to being stored for future use at a manufacturing firm.
d. Costs that would ordinarily be classified as upstream in a service firm would be classified as downstream in a manufacturing firm.
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