WWU ACCT 245 Chapter 1 questions
with verified answers
Average Cost per Unit - correct answer ✔✔Total cost of making products divided by the total
amount of products made
Cost Allocation - correct answer ✔✔Process of dividing a total cost into parts and assigning the
parts to relevant objects
Cost Plus Pricing - correct answer ✔✔a method of setting prices in which the seller totals all the
costs for the product and then adds an amount to arrive at the selling price
Direct Labor Cost - correct answer ✔✔The wages of factory workers who are directly involved in
converting materials into a finished product
Direct Raw Materials - correct answer ✔✔Costs of raw materials used to make products that
can be easily and conveniently traced to those products
Financial Accounting - correct answer ✔✔accounting information and analyses prepared for
people outside the organization looking at historical data. Global scope
Managerial Accounting - correct answer ✔✔accounting used to provide information and
analyses to managers inside the organization to assist them in decision making on past, present,
and future data. Local scope
Financial Accounting Standards Board (FASB) - correct answer ✔✔Private, independent
standard-setting body established by the accounting profession that has been delegated the
with verified answers
Average Cost per Unit - correct answer ✔✔Total cost of making products divided by the total
amount of products made
Cost Allocation - correct answer ✔✔Process of dividing a total cost into parts and assigning the
parts to relevant objects
Cost Plus Pricing - correct answer ✔✔a method of setting prices in which the seller totals all the
costs for the product and then adds an amount to arrive at the selling price
Direct Labor Cost - correct answer ✔✔The wages of factory workers who are directly involved in
converting materials into a finished product
Direct Raw Materials - correct answer ✔✔Costs of raw materials used to make products that
can be easily and conveniently traced to those products
Financial Accounting - correct answer ✔✔accounting information and analyses prepared for
people outside the organization looking at historical data. Global scope
Managerial Accounting - correct answer ✔✔accounting used to provide information and
analyses to managers inside the organization to assist them in decision making on past, present,
and future data. Local scope
Financial Accounting Standards Board (FASB) - correct answer ✔✔Private, independent
standard-setting body established by the accounting profession that has been delegated the
