ACCT 2302 - Exam 1 with answers,

ACCT 2302 - Exam 1 with answers |\ |\ |\ |\ |\ |\




Product Cost - CORRECT ANSWERS ✔✔All costs that are
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involved in acquiring or making a product.
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Period Cost - CORRECT ANSWERS ✔✔Costs that are taken
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directly to the income statement as expenses in the
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period in which they are incurred or accrued.
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-Direct Materials |\




-Direct Labor |\




-Manufacturing Overhead - CORRECT ANSWERS ✔✔What |\ |\ |\ |\ |\ |\



are the 3 categories associated with product costs?
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-Selling Costs |\




-Administrative Costs - CORRECT ANSWERS ✔✔What are |\ |\ |\ |\ |\ |\ |\



the 2 categories associated with period costs?
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Variable Cost - CORRECT ANSWERS ✔✔-A cost that varies,
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in total, in direct proportion to changes in the level of
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activity.
-Constant per unit. |\ |\

, Fixed Cost - CORRECT ANSWERS ✔✔-A cost that remains
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constant, in total, regardless of changes in the level of
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activity within the relevant range.|\ |\ |\ |\




-If this is expressed on a per unit basis, it varies inversely
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with the level of activity.
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Direct Cost - CORRECT ANSWERS ✔✔A cost that can be
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easily and conveniently traced to a specified cost object.
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Indirect Cost - CORRECT ANSWERS ✔✔A cost that cannot
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be easily and conveniently traced to a specified cost
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object.


Opportunity Cost - CORRECT ANSWERS ✔✔The potential |\ |\ |\ |\ |\ |\ |\



benefit that is given up when one alternative is selected
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over another.|\




Sunk Cost - CORRECT ANSWERS ✔✔A cost that has
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already been incurred that cannot be changed by any
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decision made now or in the future. |\ |\ |\ |\ |\ |\




Manufacturing Overhead - CORRECT ANSWERS ✔✔All |\ |\ |\ |\ |\ |\



manufacturing costs except direct materials and direct |\ |\ |\ |\ |\ |\ |\



labor.