Cost Measurement - General 3

Question 1

Scattergraph

Answer 1

graph to help compute the relationship between two variables

Question 2

full cost accounting

Answer 2

imposed additional costs on manufacturer to pay for added costs to use a facility.

Question 3

cost driver

Answer 3

is the action that causes (or “drives”) the costs associated with the activity

Question 4

In determining the cost for a manufactured item

Answer 4

costs must be anticipated for overhead such as electricity, rent, and indirect materials

Question 5

In manufacturing, costs flow through the

Answer 5

Materials Inventory, Work in Process, Finished Goods on the balance sheet and then to Cost of Goods Sold on the Income Statement

Question 6

The transfer from Work-in-Process to Finished Goods is

Answer 6

Cost of Goods Manufactured

Question 7

Relevant range

Answer 7

is the level of activity where fixed costs remain fixed

Question 8

Examples of Period Costs

Answer 8

Salaries for sales force

Abnormal Spoilage

Question 9

Examples of Product Costs

Answer 9

Depreciation on Machines
Salaries for Direct Labor
Insurance for Factory Equipment

Question 10

Mixed costs or semi variable costs both have

Answer 10

a fixed and variable component