ACC256 Mylab Study Module Exam 1

_______ include "period costs"; most other people refer to them as "operating expenses" or "selling, general, and administrative expenses (SG &A)."

Administrative Expenses

The Cost of Goods Manufactured (CGM) is calculated as ________.

Beginning Work in Process Inventory + Manufacturing Costs Incurred - Ending Work in Process Inventory

Indirect Costs

Costs that cannot be easily and accurately traced to a cost object.

Which items are product costs?

Direct Labor, MOH, Materials

Merchandising firms consider which of the following cost elements as a product cost?

Freight In

Identify which cost element is NOT a product cost.

Freight Out Expense (delivery)

How do you calculate operating income?

Gross Profit - Operating Expenses = Operating Income

Selling, marketing, and administrative costs are examples of

Period Costs (examples)

________ are always expensed in the period in which they are incurred and never become part of an inventory account.

Period Costs (never part of inventory account!)

________ include the costs incurred by the company that do not get treated as inventory.

Period expenses

Which of the following type of analytics best describes Hamesh's work on this future expenses presentation?

Predictive analytics

_________ refers to the combination of direct materials and direct labor.

Prime costs

_______ are the costs incurred by manufacturers to produce their products or incurred by merchandisers to purchase their products.

Product Costs

Which of the following is most likely to be a fixed cost?

Rent Expense

________ change in total in direct proportion to changes in volume.

Variable Costs

Merchandising Company

a company that resells products previously bought from suppliers

Sunk Cost

a cost that has already been committed and cannot be recovered

Which of the following is a controllable cost?

advertising

________ refers to the combination of direct labor and manufacturing overhead.

conversion cost

A(n) ________ is anything for which you want to know the cost.

cost object

Which is an example of a sunk cost?

depreciation expense

Other indirect manufacturing costs include each of the following EXCEPT ________

direct labor

A company's value chain includes all of the following elements EXCEPT ________

human resources

A direct cost ________

is a cost that can be traced to the cost object

A cost is relevant to a decision if ________.

it is a future cash flow and differs between alternatives

Production costs, purchase costs, and inventory costs

known as product costs

The ________ is the cost of making one more unit.

marginal cost

Period costs are also known as

operating costs

Utilities, plant insurance, and depreciation expense are examples of ________.

other indirect manufacturing costs

Operating income ________.

refers to the company's earnings before interest and income taxes

As new models are released, Tom's wants to have sold their older inventory. Which one of the following Excel strategies will most helpful in this effort?

sorting

In excel, you would like to have the ability to sort and filter on each of the columns. From the Insert tab, what should you select?

table

Predictive Analysis

the use of data warehouses and complex algorithms to forecast future events, based on historical trends and calculated probabilities