ACCT2023 ch1 connect

Common cost

A type of indirect cost incurred to benefit more than one cost object is a

direct material cost

A laptop computer manufacturer would consider the computer's processor chip to be a (3 words)

Opportunity cost

Benefits that are given up when selecting one alternative over the other is called an

A, D

Committed fixed costs include A. real estate taxes B. research C. public relations D. top management salaries

Product costs

Inventoriable costs is another word for (2 words)

In total

Variable costs vary (per unit/ in total) within the relevant range of activity.

fixed manufacturing + fixed selling + fixed admin = $63,000

What is the total fixed cost for the month of September? Direct materials - $82,000 Direct labor - $51,000 Variable manufacturing overhead- $32,000 Fixed manufacturing overhead - $30,000 Variable selling expense- $16,000 Fixed selling expense- $15,000 Variable administrative expense- $9,000 Fixed administrative expense- $18,000

Direct Labor costs

labor costs that can be easily and conveniently traced to specific products are

total mixed cost

In the equation Y=a+bX, Y is the

D

Indirect materials include A. laptop computer keyboards B. factory rent and insurance C. factory manager's salary D. nails, glue, thread

Manufacturing overhead costs

Indirect materials, factory supervisors' salaries, and factory depreciation are included in

Indirect cost

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

A, C,

Cost behavior A. refers to how a cost will change as activity level changes B. is the relative proportion of each type of cost in an organization C. categorizes costs as fixed, mixed, and variable D. is detailed analysis technique used to determine whether costs are fixed or variable

Manufacturing costs

Direct materials and direct labor are both

A, C

Discretionary fixed costs include A. management training programs B. factory depreciation C. advertising D. insurance expense

variable; slope

In the equation Y=a+bX, b denotes the ________ cost per unit of activity, and the ______ of the line

Semi-variable costs

Mixed costs are also commonly known as (a type of cost)

should

Opportunity costs (SHOULD/ SHOULD NOT) be considered in decision making

Incurred

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

B, C, D

Prior to being recorded on the income statement, manufacturers' product costs flow through A. costs of goods sold B. work in progress C. raw materials D. finished goods

Income Statement

Product costs flow through the inventory accounts until the goods are sold, at which time they are matched against sales on the (2 words)

Marginal revenue

The revenue obtained from selling one additional unit of product is called

Variable costs

What remains constant per unit and vary in total? (a type of cost)

B, C, D

Which of the following are most likely fixed costs? A. electricity to operate factory machines B. factory rent C. factory insurance D. Administrative salaries

Matching principle

The accrual concept that costs incurred to generate a revenue are expensed in the same period the revenue is recognized is the basis of the (type of principle)

Variable costs

Costs of goods sold, direct materials, and commissions are all examples of (2 words)

Differential cost

A cost that is also known as an incremental cost, and the difference in cost between two alternatives is called a

Direct costs

Costs that can be easily and conveniently traced to a specific product are called

Sunk costs

Costs that have already been incurred and can not be changed by decisions made in the current period o future periods are called (2 words)

B, C

Indirect labor costs include A. administrative assistant salary B. assembly-line supervisor salary C. factory security guard wages D. assembly-line worker wages

Manufacturing overhead

Indirect materials and indirect labor are classified as

A, C, D

Selling costs include A. advertising B. administrative sales C. sales salaries D. sales commissions

Direct materials

Materials that become an important component of the finished product whose cost can be easily and conveniently traced to the finished product are (2 words)

A, C, D

Cost objects include A. anything for which cost data is desired B. anything for which revenue data is desired C. organizational subunits D. customers

Differential revenue

The difference in revenues between two alternatives is called

Relevant Range

The level of activity within which variable and cost assumptions are valid is known as the (2 words)

Raw materials

The materials that go into the final product are called

total selling + total admin = $58,000

What is the total period cost for the month of September? Direct materials - $82,000 Direct labor - $51,000 Variable manufacturing overhead- $32,000 Fixed manufacturing overhead - $30,000 Variable selling expense- $16,000 Fixed selling expense- $15,000 Variable administrative expense- $9,000 Fixed administrative expense- $18,000

1, 2, 3

What statements are true? 1. Period costs do not flow through the inventory accounts 2. All costs in a merchandising company are period costs 3. Period costs are expensed when occurred 4. Inventoriable costs are expensed in the period in which they are incurred