C253 - Managerial Accounting exam with correct answers

C253 - Managerial Accounting exam with
correct answers

Cost vobject v- vcorrect vanswerAnything vfor vwhich vcost vdata vare vdesired. vExamples vinclude vproducts,
vcustomers, vgeographic vregions, vand vparts vof vthe vorganization vsuch vas vdepartments vor vdivisions




Direct vcost v- vcorrect vanswera vcost vthat vcan vbe veasily vand vconveniently vtraced vto va vspecified vcost
vobject




Indirect vcost v- vcorrect vanswera vcost vthat vcannot vbe veasily vand vconveniently vtraced vto va vspecified vcost
vobject




Common vcost v- vcorrect vanswera vcost vthat vis vincurred vto vsupport va vnumber vof vcost vobjects vbut vthat
vcannot vbe vtraced vto vthem vindividually




Raw vmaterials v- vcorrect vanswerany vmaterials vthat vgo vinto vthe vfinal vproduct



Direct vmaterials v- vcorrect vanswerMaterials vthat vbecome van vintegral vpart vof va vfinished vproduct vand
vwhose vcosts vcan vbe vconveniently vtraced vto vit




Direct vlabor v- vcorrect vanswerfactory vlabor vcosts vthat vcan vbe veasily vtraced vto vindividual vunits vof
vproduct




Prime vcost v- vcorrect vanswerDirect vMaterials v+ vDirect vLabor



Manufacturing voverhead v- vcorrect vanswerall vmanufacturing vcosts vexcept vdirect vmaterials vand vdirect
vlabor




Indirect vmaterials v- vcorrect vanswerSmall vitems vof vmaterial vsuch vas vglue vand vnails vthat vmay vbe van
vintegral vpart vof va vfinished vproduct, vbut vwhose vcosts vcannot vbe veasily vor vconveniently vtraced vto vit.

, Indirect vlabor v- vcorrect vanswerThe vlabor vcosts vof vjanitors, vsupervisors, vmaterials vhandlers, vand vother
vfactory vworkers vthat vcannot vbe vconveniently vtraced vto vparticular vproducts




Conversion vcost v- vcorrect vanswerDirect vLabor v+ vManufacturing vOverhead



Selling vcosts v- vcorrect vanswerall vcosts vthat vare vincurred vto vsecure vcustomer vorders vand vget vthe
vfinished vproduct vor vservice vinto vthe vhands vof vthe vcustomer




Admin vcosts v- vcorrect vanswerall vexecutive, vorganizational, vand vclerical vcosts vassociated vwith vthe
vgeneral vmanagement vof van vorganization vrather vthan vthe vmanufacturing vor vselling




Product vcosts v- vcorrect vanswerAll vcosts vthat vare vinvolved vin vacquiring vor vmaking va vproduct. vIn vthe vcase
vof vmanufactured vgoods, vthese vcosts vconsist vof vdirect vmaterials, vdirect vlabor, vand vmanufacturing

voverhead. vAlso vcalled vinventoriable vcosts




Work vin vprocess v- vcorrect vanswerUnits vof vproduct vthat vare vonly vpartially vcomplete vand vwill vrequire
vfurther vwork vbefore vthey vare vready vfor vsale vto vthe vcustomer




Finished vgoods v- vcorrect vanswerunits vof vproduct vthat vhave vbeen vcompleted vbut vnot vyet vsold vto
vcustomers




Period vcosts v- vcorrect vanswercosts vthat vare vtaken vdirectly vto vthe vincome vstatement vas vexpenses vin vthe
vperiod vin vwhich vthey vare vincurred vor vaccrued




Cost vbehavior v- vcorrect vanswerthe vway vin vwhich va vcost vreacts vto vchanges vin vthe vlevel vof vactivity



Cost vstructure v- vcorrect vanswerthe vrelative vproportion vof vfixed, vvariable, vand vmixed vcosts vin van
vorganization




Variable vcost v- vcorrect vanswerA vcost vthat vvaries, vin vtotal, vin vdirect vproportion vto vchanges vin vthe vlevel
vof vactivity. vIt vis vconstant vper vunit