UIUC Accy 200 CQ 7

Cost of Goods Manufactured can be computed as:

beginning balance of work in process + raw materials used + direct labor costs incurred + manufacturing overhead costs applied ─ ending balance of work in process.

Which of the following items would not be reported on the statement of cost of goods manufactured?

contribution margin.

In the T-account cost flow diagram of balance sheet inventory accounts and the income statement cost of goods sold account:

cost of goods manufactured is debited to finished goods inventory.

The three components of product costs are:

direct material, direct labor, manufacturing overhead.

The primary difference between absorption costing and direct costing is the treatment of:

fixed manufacturing overhead.

Which of the following will cause income determined with absorption costing to be higher than income determined with direct costing?

units produced are greater than units sold.

Which of the following costs are included in the "for cost accounting purposes" classification?

Product cost and period cost.

Which of the following costs would be classified as a period cost:

advertising expense for the product.

Cost accounting is a subset of:

managerial accounting.

Standards are most appropriately used to:

support the planning and control processes of the firm.