Acct 208 Generalizations

Question 1

Depreciation will be…..

Answer 1

a fixed cost

Question 2

Direct materials and direct labor are always

Answer 2

a variable product cost

Question 3

Wages are

Answer 3

variable

Question 4

Salaries are

Answer 4

fixed.

Question 5

Manufacturing overhead has both fixed and variable elements, and thus

Answer 5

is a mixed cost

Question 6

Commissions are

Answer 6

a variable period cost.

Question 7

Retail environments have a

Answer 7

variable cost of goods sold and NO manufacturing overhead.

Question 8

Moving goods refers to moving inventories within the business.

Answer 8

. It is a product cost. Any work before the item is completed is a product cost.

Question 9

Shipping goods (referred to as finished goods) from the business to customer

Answer 9

is a period cost. These costs relate to goods that have already been completed.

Question 10

What two elements do period costs have?

Answer 10

fixed and variable elements

Question 11

What can wages also be?

Answer 11

a period cost

Question 12

Manufacturing Environments:

COGS: mixed or no
Manufacturing overhead: mixed or no

Answer 12

• mixed

- mixed

Question 13

Cogs and Moh are what?

Answer 13

MIXED!!!!!!

Question 14

List the 3 mixed items

Answer 14

• COGS
• MOH
• Period