idk

Product costs ______.

"attach" to units of product as they are purchased for resale or produced are also called inventoriable costs

A company purchased a 12 month insurance policy on October 1 for $1,200. On the December 31 annual financial statements, ______.

$300 is reported as a expense and $900 is reported as an asset (300 has been used by december, making it an expense; 900 is still available for usage)

Manufacturing costs can be divided into three categories:

- direct materials - direct labor - manufacturing overhead

Which of the following are most likely fixed costs? Multiple select question.

Factory rent Administrative salaries Factory insurance

Which of the following statements are true?

Period costs are expensed in the same period in which they are incurred. Sales commissions are period costs. Period costs do not flow through the inventory accounts. Period costs are expensed when incurred.

Which of the following are differences between the traditional and contribution format to income statements?

Traditional income statements focus on cost classifications. Contribution format statements focus on cost behavior. Compared to traditional statements, contribution format statements provide management with a tool to make decision making easier.

Differential cost is ______.

also known as incremental cost the difference in cost between two alternatives

Opportunity costs ______.

are benefits that are given up when selecting one alternative over another should be considered in decision making

How individual costs react to changes in activity level is referred to as cost _____.

behavior

Sales revenue minus variable expenses equals

contribution margin

Any item for which cost data is desired is called a(n) _____ _____

cost object

Any item for which cost data is desired is called a(n) _____ ______.

cost object

Cost objects include ______.

customers organizational subunits anything for which cost data is desired

Differential costs, opportunity costs and sunk costs are all cost classifications used in ______.

decision making

A laptop computer manufacturer would consider the computer's processor chip to be a(n) ______ cost.

direct

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

direct

Fantastic Furniture makes custom order couches. The material used to make a couch is a(n) ______ cost of the customer placing the order.

direct

Materials that become an important component of the finished product whose cost can be easily and conveniently traced to the finished product are _____ matrials.

direct

In an automobile manufacturing plant, the assembly-line workers are classified as _____ ______ cost.

direct labor

Selling and administrative costs are ______ costs.

direct or indirect

A cost that can be easily and conveniently traced to a specific cost object is a(n) _____ cost of that cost object, whereas costs that cannot be easily and conveniently traced to that specific cost object are _____ costs.

direct; indirect

Within the relevant range of activity, ______ costs remain constant in total.

fixed

Within the relevant range of activity ______.

fixed costs remain constant in total costs and activity can be approximated by a straight line

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

indirect

Salaries of factory supervisors and factory maintenance personnel are examples of ______ labor costs.

indirect

Which of the following is not a COST CLASSIFICATION associated with decision making?

indirect cost

Direct materials and direct labor are both ______ costs.

manufacturing

Product costs are also called _____ costs.

manufacturing

Factory costs such as cleaning supplies, taxes, insurance, and janitor wages are classified as ______.

manufacturing overhead

Indirect materials and indirect labor are classified as ______.

manufacturing overhead

The accrual concept that costs incurred to generate a revenue are expensed in the same period the revenue is recognized is known as the _____ principle.

matching

A cost that contains both variable and fixed cost elements is a(n) ______ cost.

mixed

Indirect materials include ______.

nails, glue, and thread

A potential benefit that is forfeited or lost when one decision is chosen over another is called a(n) _____ _____.

opportunity cost

Direct materials, direct labor, and manufacturing overhead are all ______ costs.

product

On a traditional income statement, cost of goods sold reports the _____ costs attached to merchandise sold during the period, while selling and administrative expenses report all _____ costs that have been expensed as incurred.

product; period

The materials that go into the final product are called _____ materials.

raw

Cost behavior ______.

refers to how a cost will change as activity level changes categorizes costs as fixed, mixed and variable

The assumption that cost behavior is strictly linear is reasonably valid within the _____ _____ of activity.

relevant range

sales costs include

sales salaries sales commissions advertising

Direct labor is also called _____ labor.

touch

An income statement focusing on product and period costs has been prepared using a(n) _____ format, while a(n) _____ format income statement makes a distinction between fixed and variable costs.

traditional; contribution

True or false: The finished product of one company can become raw materials for another company.

true

Within the relevant range, a cost that changes in direct proportion to changes in the activity level is a ______ cost.

variable