ACCT
direct labor
also called touch labor
Differential cost
always relevant
direct labor
is common to both prime cost and conversion cost.
Product costs
best describe the wages of a sheet metal worker in a fabrication plant.
common cost
A ___________ is a cost that is incurred to support a number of cost objects but cannot be traced to them individually.
indirect cost
Adventure Holiday sells thousands of tour packages each month through its various branches. A branch manager's salary would be a(n) _________ of selling a tour package.
direct materials
Materials that become an integral part of the finished product and whose costs can be conveniently traced to the finished product are called
matching principle
The ________ requires that the costs incurred to generate a particular revenue should be recognized as expenses in the same period that the revenue is recognized.
A fixed cost is a cost which
remains constant in total with changes in the level of activity
If a firm increases its activity level,
some costs will change, other costs will remain the same
direct cost
Adventure Holiday sells thousands of tour packages each month through its various branches. A branch manager's salary would be a(n) _________ of the branch.
manufacturing overhead costs
Items such as indirect materials, indirect labor, maintenance and repairs on production equipment, depreciation, and insurance on manufacturing facilities are included in ________.
non-manufacturing costs
Property taxes associated with a company's administrative facility are considered ________.
Which observation is true of period costs
They are expensed in the period in which they are incurred.