C213 Final Exam (Latest Update )
Questions with Answers | Grade A | 100%
Correct Verified Answers. WGU
1. **Variable Costs**
ANS A cost that changes directly with changes in the level of sales or
production. Examples are direct materials costs and sales commission.
2. **Fixed Costs**
ANS A cost that doesn’t change based on changes in the level of sales or
production. Examples are building rent and executive salaries.
3. **Product Costs**
ANS A cost incurred in producing a product that is capitalized as inventory
until the product is sold. Examples include direct materials, direct labor, and
manufacturing overhead.
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,4. **Period Costs**
ANS Costs not directly tied to production and are expensed in the period they
are incurred. Examples include selling and administrative expenses.
5. **Manufacturing Overhead**
ANS All manufacturing costs except direct materials and direct labor.
Examples include factory utilities, factory maintenance, and various indirect
materials such as glue or screws.
6. **Direct Costs**
ANS The costs that are created by a particular product or segment that is
being analyzed. If a product or segment is dropped, the direct costs created by
that product or segment will disappear.
7. **Indirect Costs**
ANS The costs that are assigned to a particular product or segment but that are
not actually caused by that product or segment. If a product or segment is
dropped, the indirect costs assigned to that product or segment will remain.
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, 8. **Differential Costs**
ANS A future cost that can be changed by a decision made now. An example
is monthly rent for an apartment.
9. **Sunk Costs**
ANS A past cost that cannot be changed by any decision made now. An
example would be last month’s paid rent.
10. **Out-of-pocket Costs**
ANS Costs that involve the outlay of cash or the use of some other asset (like
equipment).
11. **Opportunity Costs**
ANS The benefits not received because of actions NOT taken. For example,
the opportunity cost of going to a basketball game is the increased points that
you could have received on the next day’s accounting exam if you had spent
that time studying.
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Questions with Answers | Grade A | 100%
Correct Verified Answers. WGU
1. **Variable Costs**
ANS A cost that changes directly with changes in the level of sales or
production. Examples are direct materials costs and sales commission.
2. **Fixed Costs**
ANS A cost that doesn’t change based on changes in the level of sales or
production. Examples are building rent and executive salaries.
3. **Product Costs**
ANS A cost incurred in producing a product that is capitalized as inventory
until the product is sold. Examples include direct materials, direct labor, and
manufacturing overhead.
1
,4. **Period Costs**
ANS Costs not directly tied to production and are expensed in the period they
are incurred. Examples include selling and administrative expenses.
5. **Manufacturing Overhead**
ANS All manufacturing costs except direct materials and direct labor.
Examples include factory utilities, factory maintenance, and various indirect
materials such as glue or screws.
6. **Direct Costs**
ANS The costs that are created by a particular product or segment that is
being analyzed. If a product or segment is dropped, the direct costs created by
that product or segment will disappear.
7. **Indirect Costs**
ANS The costs that are assigned to a particular product or segment but that are
not actually caused by that product or segment. If a product or segment is
dropped, the indirect costs assigned to that product or segment will remain.
2
, 8. **Differential Costs**
ANS A future cost that can be changed by a decision made now. An example
is monthly rent for an apartment.
9. **Sunk Costs**
ANS A past cost that cannot be changed by any decision made now. An
example would be last month’s paid rent.
10. **Out-of-pocket Costs**
ANS Costs that involve the outlay of cash or the use of some other asset (like
equipment).
11. **Opportunity Costs**
ANS The benefits not received because of actions NOT taken. For example,
the opportunity cost of going to a basketball game is the increased points that
you could have received on the next day’s accounting exam if you had spent
that time studying.
3
