Ch. 2 acct
The general term used to identify both the tracing and the allocation of accumulated costs to a cost object is ____
Cost assignment
Cost behavior refers to:
How costs react to a change in the level of activity
Which of the following statements about the direct/indirect cost classification is true?
Indirect costs are always allocated
Indirect manufacturing costs_____
May include both variable and fixed costs
Cost tracing is ___
The assignment of direct costs to the chosen cost object
Cost allocation is ___
The assignment of indirect costs to the chosen cost object
True of false: A direct cost of one cost object can be an indirect cost of another cost object
True
True or false: All fixed costs are indirect costs
True
Classifying a cost as either direct or indirect depends upon ___.
Whether the cost can be economically traced to the cost object
The determination of a cost as either direct or indirect depends upon the __
cost object chosen
Within relevant rage, variable costs _____
increase in total when activity levels increase
For a manufacturing company, direct labor costs may be included in ___
only in work in process inventory, finished goods inventory, and cost of goods sold