Exam 2: An Introduction to Cost Terms and Concepts

TEK, Inc., is considering whether to replace a production machine with a newer model of the same machine. If TEK keeps the old machine, the trade-in value of the old equipment is an example of a(n)

Which of the following is an example of a fixed cost?

Which of the following items would NOT be classified as part of factory overhead of a firm that makes sailboats?

Which of the following costs is a period cost for a manufacturing company?

Which of the following costs is a variable cost?

Direct materials are an example of a

Direct costs

A supervisor's salary of £2,000 per month is an example of a

Assuming costs are represented on the vertical axis and volume of activity on the horizontal axis, which of the following costs would be represented by a line that is parallel to the horizontal axis?

Which of the following is a period cost?

Which of the following is an example of a variable cost?

Which of the following costs is NOT recorded in the company's accounting system?

Selling and administrative costs are classified as

Product costs are converted from cost to expense when

Assuming costs are represented on the vertical axis and volume of activity on the horizontal axis, which of the following costs would be represented by a line that starts at the origin and reaches a maximum value and beyond the point that the line becomes parallel to the horizontal axis?

Which of the following costs would be classified as variable costs with respect to volume?

Which of the following is an example of a step-fixed cost?

An example of a period cost is

Mixed costs

Variable costs,