Wk 5 – Practice Topic 14 - Terminology Used for Planning, Control, and
Evaluation Quick Check
Points
20
:
Graded on Mar 12 at
21:23 Your
Submission
Score: (40.00%)
Grade Time: Mar 12 at 21:23
Submitted On: Mar 12 at 21:23
1. If a cost increases as the sales volume increases, the cost is a:
o Fixed cost
o Direct cost
o Variable cost
o Sunk cost
FEEDBACK
(100.0%)
2. Which of the following has a direct materials inventory?
o Merchandising company
o Service company
o Manufacturing company
o None of these are correct
FEEDBACK
(100.0%)
3. Which of the following would NOT usually be considered a product cost of a manufacturing
company?
o Indirect labor
o Direct materials
o Property taxes on factory building
o Advertising CORRECT ANSWER
FEEDBACK
(0.0%)
Incorrect. Advertising is not considered to be a product cost for a manufacturing company. A
product cost is a cost incurred as part of the
, production process. Operationally, these are the costs incurred in the
factory. Indirect labor costs are manufacturing overhead costs
incurred with respect to the factory and so are product costs.
4. Which of the following would NOT be included in manufacturing overhead?
o Factory fire insurance
o Direct labor
o Factory utilities
o Indirect materials
FEEDBACK
(100.0%)
5. Utility expense in a merchandising company would be considered a(n):
o Manufacturing cost
o Indirect cost
o Period cost CORRECT ANSWER
o Product cost
FEEDBACK
(0.0%)
Incorrect. Utility expense in a merchandising company would be considered a period cost. In a
merchandising company, there is no production activity to no manufacturing costs. These
period costs are reported as an expense in the period in which they are incurred.
6. The cost of milk for an ice cream manufacturer would be considered all of the following
except:
o Product cost
o Manufacturing cost
o Variable cost
o Indirect cost CORRECT ANSWER
FEEDBACK
(0.0%)
Incorrect. The cost of milk for an ice cream manufacturer would be considered a product cost, a
manufacturing cost, and a variable cost. Indirect costs are costs that are assigned to a particular
product or segment but that are not actually caused by that product or segment. It is the case
that milk cost can be tracked directly to the activity of producing milk.
7. Costs that are directly traceable to a unit of business or segment being analyzed are
called:
o Overhead costs
o Variable costs
Evaluation Quick Check
Points
20
:
Graded on Mar 12 at
21:23 Your
Submission
Score: (40.00%)
Grade Time: Mar 12 at 21:23
Submitted On: Mar 12 at 21:23
1. If a cost increases as the sales volume increases, the cost is a:
o Fixed cost
o Direct cost
o Variable cost
o Sunk cost
FEEDBACK
(100.0%)
2. Which of the following has a direct materials inventory?
o Merchandising company
o Service company
o Manufacturing company
o None of these are correct
FEEDBACK
(100.0%)
3. Which of the following would NOT usually be considered a product cost of a manufacturing
company?
o Indirect labor
o Direct materials
o Property taxes on factory building
o Advertising CORRECT ANSWER
FEEDBACK
(0.0%)
Incorrect. Advertising is not considered to be a product cost for a manufacturing company. A
product cost is a cost incurred as part of the
, production process. Operationally, these are the costs incurred in the
factory. Indirect labor costs are manufacturing overhead costs
incurred with respect to the factory and so are product costs.
4. Which of the following would NOT be included in manufacturing overhead?
o Factory fire insurance
o Direct labor
o Factory utilities
o Indirect materials
FEEDBACK
(100.0%)
5. Utility expense in a merchandising company would be considered a(n):
o Manufacturing cost
o Indirect cost
o Period cost CORRECT ANSWER
o Product cost
FEEDBACK
(0.0%)
Incorrect. Utility expense in a merchandising company would be considered a period cost. In a
merchandising company, there is no production activity to no manufacturing costs. These
period costs are reported as an expense in the period in which they are incurred.
6. The cost of milk for an ice cream manufacturer would be considered all of the following
except:
o Product cost
o Manufacturing cost
o Variable cost
o Indirect cost CORRECT ANSWER
FEEDBACK
(0.0%)
Incorrect. The cost of milk for an ice cream manufacturer would be considered a product cost, a
manufacturing cost, and a variable cost. Indirect costs are costs that are assigned to a particular
product or segment but that are not actually caused by that product or segment. It is the case
that milk cost can be tracked directly to the activity of producing milk.
7. Costs that are directly traceable to a unit of business or segment being analyzed are
called:
o Overhead costs
o Variable costs
