Exam 2: Cost Terminology and Cost Behaviors

In a perpetual inventory system,the sale of items for cash consists of two entries.One entry is a debit to Cash and a credit to Sales.The other entry is a debit to

Anything for which management wants to accumulate or collect costs is known as a _________________________.

A cost that shifts upward or downward when activity changes by a certain interval is referred to as a ____________________ cost.

Both accountants and economists view variable costs as linear in nature.

A(n)____ cost increases or decreases in intervals as activity changes.

Distribution costs are an example of period costs.

A specific product cannot be a cost object.

Plastic used to manufacture dolls is a

If the cost of an additive is $5,000 + $0.50 for every unit of solvent produced,the cost is classified as a step cost.

Product costs are deducted from revenue

What is the difference between a product cost and a period cost? Give three examples of each.What is the difference between a direct cost and indirect cost? Give two examples of each.

In a service industry,direct materials are usually significant in amount and can be easily traced to a cost object.

Cost of Goods Sold is an

Using the information below,prepare a Schedule of Cost of Goods Manufactured (in good form)for the Gibbs Company for June 20y0: Additional information: purchases of raw material were $46,700; 19,700 direct labor hours were worked at $11.30 per hour; overhead costs were $33,300.

The following information is for the Guthrie Manufacturing Company for November. Calculate total manufacturing costs,cost of goods manufactured,and cost of goods sold.

Costs that result from defective units,product returns,and complaints are referred to as ____________________ costs.

Which of the following costs would be considered overhead in the production of chocolate chip cookies?

A predictor which has an absolute cause and effect relationship to a cost is referred to a cost driver.

The indirect costs of converting raw material into finished goods are called

Anderson Enterprises Refer to Anderson Enterprises.For March,Cost of Goods Manufactured was