acct 2302 chapter 1

Question 1

An inventoriable cost is a period cost

Answer 1

False

Question 2

product costs are also known as ________________.

Answer 2

inventoriable

Question 3

Raptor Fitness, a seller of fitness equipment, recently launched a marketing campaign. It cost the company $20,000 to develop an internet ad, and the company pays $0.001 per click that leaads the viewer to Raptor’s website. The total cost of the advertising campaign would be considered a(n) ___________ cost.

mixed
fixed
activity base
variable

Answer 3

mixed (because campaign haas both fixed cost (development ad) and varibale cost (cosst per click)

Question 4

The difference between two costs is a _____________ cost.

Answer 4

differential

Question 5

Which of the following lines appears in both traditional and contribution format income statements? Select all that apply.

Sales
Gross Margin
Contribution Margin
Net operating income

Answer 5

Sales
Net operating income