Accounting 211 Exam 4 Questions With
Verified Solutions.
Direct Costs (Traceable) - Answer Costs that can be directly traced to the cost object
Indirect Costs (Non-Traceable) - Answer Costs that cannot be directly traced to the cost object
Trace Direct Costs - Answer Direct costs can be directly traced to their cost object so this is very
accurate
Allocate Indirect Costs - Answer We attempt to accurately allocate indirect costs to their cost object but
this tends to be less accurate
Inventoriable Product Costs - Answer Only includes costs absorbed during the production or purchases
stage of the value chain
Period Costs - Answer All other costs incurred during the R&D, design, marketing, distribution, and
customer service stages of the value chain
Cost of Goods Available for Sale Formula - Answer Beginning Inventory + Purchases + Freight-In +
Import Duties
Cost of Goods Sold Formula - Answer Cost of Goods Available for Sale - Ending Inventory
Total Manufacturing Costs Formula - Answer Direct Materials + Direct Labor + Manufacturing Overhead
Direct Materials - Answer The cost of raw materials that will become part of the finished product
Direct Labor - Answer The cost of pay employees that directly work on converting raw materials into a
finished good
Verified Solutions.
Direct Costs (Traceable) - Answer Costs that can be directly traced to the cost object
Indirect Costs (Non-Traceable) - Answer Costs that cannot be directly traced to the cost object
Trace Direct Costs - Answer Direct costs can be directly traced to their cost object so this is very
accurate
Allocate Indirect Costs - Answer We attempt to accurately allocate indirect costs to their cost object but
this tends to be less accurate
Inventoriable Product Costs - Answer Only includes costs absorbed during the production or purchases
stage of the value chain
Period Costs - Answer All other costs incurred during the R&D, design, marketing, distribution, and
customer service stages of the value chain
Cost of Goods Available for Sale Formula - Answer Beginning Inventory + Purchases + Freight-In +
Import Duties
Cost of Goods Sold Formula - Answer Cost of Goods Available for Sale - Ending Inventory
Total Manufacturing Costs Formula - Answer Direct Materials + Direct Labor + Manufacturing Overhead
Direct Materials - Answer The cost of raw materials that will become part of the finished product
Direct Labor - Answer The cost of pay employees that directly work on converting raw materials into a
finished good
