ACCT202 Chapter 1 Smartbook

¡Supera tus tareas y exámenes ahora con Quizwiz!

How individual costs react to changes in activity level is referred to as cost ______

behavior

A company purchased a 12 month insurance policy on October 1 for $1,200. On the December 31 annual financial statements, ______.

$300 is reported as a expense and $900 is reported as an asset

The components of prime costs are direct costs and direct ______ ______ costs.

Blank 1: materials or material Blank 2: labor or labour

Which of the following are most likely fixed costs?

Factory rent Administrative salaries Factory insurance

True or false: All of a company's depreciation, property taxes and insurance premiums are considered manufacturing overhead.

False

Which of the following statements are true?

Period costs are expensed in the same period in which they are incurred. Sales commissions are period costs.

Which of the following statements are true?

Period costs do not flow through the inventory accounts. Period costs are expensed when incurred.

True or false: The finished product of one company can become raw materials for another company.

True

Cost objects include ______.

anything for which cost data is desired organizational subunits customers

Product costs ______.

are also called inventoriable costs "attach" to units of product as they are purchased for resale or produced

Cost behavior ______.

categorizes costs as fixed, mixed and variable refers to how a cost will change as activity level changes

Fixed costs that cannot easily be changed and often lock a company into a multi-year decision are called ______ fixed costs.

committed

Labor costs that can be easily and conveniently traced to specific products are ______ costs.

direct

Prime costs include ______.

direct labor direct materials

Manufacturing costs include ______.

direct labor direct materials manufacturing overhead

In an automobile manufacturing plant, the assembly-line workers are classified as ______ ______ cost.

direct labor OR touch labour

A laptop computer manufacturer would consider the computer's processor chip to be a(n) ______ cost.

direct material

Selling and administrative costs are ______ costs.

direct or indirect

True or false: Labor costs that can be specifically traced to a product are indirect labor costs.

false

Within the relevant range of activity, ______ costs remain constant in total.

fixed

Product costs flow through the inventory accounts until the goods are sold, at which time they are matched against sales on the ______.

income statement

A manufacturing cost that cannot be easily traced to a specific cost object is a(n) ______ cost.

indirect

Salaries of factory supervisors and factory maintenance personnel are examples of ______ labor costs.

indirect

A dress manufacturer would consider the cost of relatively inexpensive items like thread to be part of ______.

indirect materials manufacturing overhead

Manufacturing overhead costs include ______.

indirect materials, factory supervisors' salaries, and factory depreciation

Indirect materials and indirect labor are classified as ______.

manufacturing overhead

The accrual concept that costs incurred to generate a revenue are expensed in the same period the revenue is known as the ______ principle.

matching

Nonmanufacturing costs include ______.

sales commissions company president's salary

Period costs are always expensed on the income statement in the period in which ______.

they are incurred

A cost that changes in direct proportion to changes in the activity level is a ______ cost.

variable

Product costs are also called ______ costs.

inventoriable OR manufactoring

Minor items such as nails and glue are usually considered to be ______.

indirect materials

Factory costs such as cleaning supplies, taxes, insurance, and janitor wages are classified as ______.

manufacturing overhead

Cost of goods sold for a merchandising company, direct materials and commissions are all examples of ______ costs.

variable

Which type of cost changes in total, in direct proportion to changes in activity level?

variable


Conjuntos de estudio relacionados

Anatomy 5 - Femur, Patella, Tibia, Fibula & Foot

View Set

Honors Chemistry Chapter 11 Assessment

View Set

Advanced MS - Chapter 36 & 37 WB

View Set

Chapter 14: The Courts Vocabulary

View Set