Exam 2: An Introduction to Cost Terms and Purposes

The East Company manufactures several different products.Unit costs associated with Product ORD105 are as follows: What is the percentage of the total fixed costs per unit associated with Product ORD105 with respect to total cost?

Wages paid to machine operators on an assembly line are classified as a ________.

Inventoriable costs ________.

Variable costs per unit vary with the level of production or sales volume.

Costs expensed on the income statement in the accounting period incurred are called ________.

For last year,Watson Limited reported revenues of $420,000,cost of goods sold of $118,000,cost of goods manufactured of $105,000,and total operating costs of $60,000.Operating income for that year was ________.

Universal Works Inc. ,reports the following information for September sales: Promotional expenses for September were $1,000. Required: If sales double in October,what is the impact on the variable costs?

Direct materials inventory costs would normally include ________.

Manufacturing overhead costs are also referred to as ________.

Finished goods inventory would normally include ________.

Which of the following statements about the direct/indirect cost classification is true?

Work-in-process inventory are goods partially worked on but not yet completed.

Many government agency contracts exclude all but which of the following costs from reimbursement under cost-plus agreements?

The American West Company manufactures several different products.Unit costs associated with Product ORD210 are as follows: What are the inventoriable costs per unit associated with Product ORD210?

Acquisition costs of direct materials include freight-in charges,sales taxes,and custom duties.

Costs are accounted for in two basic stages: assignment followed by accumulation.

Puritan Apparels is a clothing retailer.Unit costs associated with one of its products,Product AHF 130,are as follows: What are the direct variable manufacturing costs per unit associated with Product AHF 130?

Managers use assigned cost information to make decisions and implement them.

Which one of the following items is a direct cost?

Which of the following is true if the volume of sales increases (within a relevant range)?