Exam 2: An Introduction to Cost Terms and Purposes

Indirect manufacturing costs include the compensation of all manufacturing labor that can be traced to the cost object in an economically feasible way.

A unit cost is also called an average cost.

Direct material costs are the acquisition costs of all materials that eventually become part of the cost object and cannot be traced to the cost object in an economically feasible way.

For external reporting ________.

Rapid Cabinet Makers Inc.provided the following information for last month: If sales reduce to half the amount in the next month,what is the projected operating income?

Puritan Apparels is a clothing retailer.Unit costs associated with one of its products,Product DCF 130,are as follows: What are the indirect nonmanufacturing variable costs per unit associated with Product DCF130?

The most likely cost driver of distribution costs is the ________.

When making decisions for product mix and pricing,the focus should be on total costs and not unit costs.

For manufacturing firms,inventoriable costs include ________.

Buildz Manufacturing currently produces 2,000 tables per month.The following per unit data for 2,000 tables apply for sales to regular customers: The plant has capacity for 4,000 tables and is considering expanding production to 4,000 tables.What is the total cost of producing 4,000 tables?

Which of the following formulas determine cost of goods sold in a merchandising entity?

Which of the following is included in product cost for pricing and product-mix decisions?

All Rite Manufacturing reported the following: What is Leslie's cost of goods sold?

In its first year of operation,the Excellent Publishing Company sells 52,000 units and has 1,700 units in stock at year end.The cost of goods sold are $3,100,000.What are the total manufacturing costs for the year if the average unit cost is $8.50?

Wood used to manufacture chairs is considered a direct variable cost when the cost object is the chair.

Expert Manufacturing reported the following: How much of the above would be considered period costs for Expert Manufacturing?

Budgeted costs are ________.

When 25,000 units are produced,fixed costs are $21.00 per unit.Therefore,when 20,000 units are produced,fixed costs will ________.

A manufacturing plant produces two product lines: golf equipment and soccer equipment.An example of indirect cost for the soccer equipment line is the ________.

Department stores,such as Macy's and Khols,are examples of a merchandising company.