Matching
Match the following definitions with the appropriate terms
Premises:
Costs that flow directly to the current income statement as expenses.
Costs that change in proportion to changes in volume of activity.
The potential benefit lost by choosing a specific action from two or more alternatives.
Manufacturing expenditures that cannot be separately or readily traced to finished goods.
Expenditures necessary and integral to finished products.
Expenditures incurred in the process of converting raw materials to finished products; include direct labor and factory overhead.
Costs that have already been incurred and cannot be avoided or changed.
Expenditures directly associated with the manufacture of finished products; include direct materials and direct labor.
Costs that do not change with changes in the volume of activity.
Costs that are incurred for the benefit of more than one cost object.
Responses:
Sunk costs
Indirect costs
Product costs
Prime costs
Fixed costs
Opportunity costs
Period costs
Conversion costs
Factory overhead
Variable costs
Correct Answer:
Premises:
Responses:
Costs that flow directly to the current income statement as expenses.
Costs that change in proportion to changes in volume of activity.
The potential benefit lost by choosing a specific action from two or more alternatives.
Manufacturing expenditures that cannot be separately or readily traced to finished goods.
Expenditures necessary and integral to finished products.
Expenditures incurred in the process of converting raw materials to finished products; include direct labor and factory overhead.
Costs that have already been incurred and cannot be avoided or changed.
Expenditures directly associated with the manufacture of finished products; include direct materials and direct labor.
Costs that do not change with changes in the volume of activity.
Costs that are incurred for the benefit of more than one cost object.
Premises:
Costs that flow directly to the current income statement as expenses.
Costs that change in proportion to changes in volume of activity.
The potential benefit lost by choosing a specific action from two or more alternatives.
Manufacturing expenditures that cannot be separately or readily traced to finished goods.
Expenditures necessary and integral to finished products.
Expenditures incurred in the process of converting raw materials to finished products; include direct labor and factory overhead.
Costs that have already been incurred and cannot be avoided or changed.
Expenditures directly associated with the manufacture of finished products; include direct materials and direct labor.
Costs that do not change with changes in the volume of activity.
Costs that are incurred for the benefit of more than one cost object.
Responses:
Related Questions
Q80: The beginning and ending finished goods inventories
Q81: Reference: 14_02<br>The following information is available
Q82: Compute cost of goods manufactured for
Q83: Bourne Crafts manufactures specialty key chains for
Q87: Current information for the Austin Company
Q90: Manufacturers usually have three inventories: raw materials,
Q90: Reference: 14_02<br>The following information is available
Q136: The management concept of customer orientation encourages
Q192: Costs may be classified by many different
Q226: _ inventory consists of products in the