ACCT 526 Exam 1
QUESTIONS AND VERIFIED
CORRECT ANSWERS
GRADED A+ LATEST 100%
GUARANTEED PASS
conversion cost - CORRECT ANSWER-direct labor and manufacturing overhead
selling costs - CORRECT ANSWER-Costs necessary to secure the order and deliver the product
These costs can be direct or indirect
administrative costs - CORRECT ANSWER-All executive, organizational, and clerical costs
These costs can be direct or indirect
product costs - CORRECT ANSWER-all costs that are involved in acquiring or making a product
These costs "attach" to a unit of product as it is purchased or manufactured and they stay
attached to each unit of product as long as it remains in inventory awaiting sale
raw materials - CORRECT ANSWER-includes any materials that go into the final product
, work in process - CORRECT ANSWER-consists of units of product that are only partially
complete and will require further work before they are ready for sale to the customer
finished good costs - CORRECT ANSWER-consists of completed units of product that have not
yet been sold to customers
direct materials, direct labor, & manufacturing overhead - CORRECT ANSWER-Product costs
include
all selling costs and administrative costs - CORRECT ANSWER-Period costs include
variable costs
fixed costs
mixed costs - CORRECT ANSWER-Cost behavior refers to how a cost will react to changes in the
level of activity.
The most common classifications are:
variable cost (a variable cost per unit is constant) - CORRECT ANSWER-a cost that varies, in total,
in direct proportion to changes in the level of activity
units produced
machine hours
miles driven
labor hours - CORRECT ANSWER-The Activity Base (cost driver)
A measure of what causes the incurrence of a variable cost
QUESTIONS AND VERIFIED
CORRECT ANSWERS
GRADED A+ LATEST 100%
GUARANTEED PASS
conversion cost - CORRECT ANSWER-direct labor and manufacturing overhead
selling costs - CORRECT ANSWER-Costs necessary to secure the order and deliver the product
These costs can be direct or indirect
administrative costs - CORRECT ANSWER-All executive, organizational, and clerical costs
These costs can be direct or indirect
product costs - CORRECT ANSWER-all costs that are involved in acquiring or making a product
These costs "attach" to a unit of product as it is purchased or manufactured and they stay
attached to each unit of product as long as it remains in inventory awaiting sale
raw materials - CORRECT ANSWER-includes any materials that go into the final product
, work in process - CORRECT ANSWER-consists of units of product that are only partially
complete and will require further work before they are ready for sale to the customer
finished good costs - CORRECT ANSWER-consists of completed units of product that have not
yet been sold to customers
direct materials, direct labor, & manufacturing overhead - CORRECT ANSWER-Product costs
include
all selling costs and administrative costs - CORRECT ANSWER-Period costs include
variable costs
fixed costs
mixed costs - CORRECT ANSWER-Cost behavior refers to how a cost will react to changes in the
level of activity.
The most common classifications are:
variable cost (a variable cost per unit is constant) - CORRECT ANSWER-a cost that varies, in total,
in direct proportion to changes in the level of activity
units produced
machine hours
miles driven
labor hours - CORRECT ANSWER-The Activity Base (cost driver)
A measure of what causes the incurrence of a variable cost
