61. Period costs are operating costs that are expensed in the period in which the goods are sold. 
 

62. Factory overhead includes all manufacturing costs except direct materials and direct labor. 
 

63. Labor costs that are directly traceable to the product are part of factory overhead. 
 

64. Product costs include direct labor and advertising expense. 
 

65. Indirect labor and indirect materials would be part of factory overhead. 
 

66. Prime costs consist of factory overhead and direct labor. 
 

67. Conversion costs consist of product costs and period costs. 
 

68. Prime costs consists of direct materials, indirect materials, and direct labor. 
 

69. Managerial accounting uses only past data in reports to aid management in the decision making process. 
 

70. In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT: 
A. provide objective measures of past operations and subjective estimates about future decisions
B. be prepared in accordance with generally accepted accounting principles
C. be provided at any time management needs information
D. be prepared to report information for any unit of the business to support decision making