Exam 1 review part 1

Question 1

This is the segment of accounting
that does not need to follow GAAP
and is not required

Answer 1

Managerial accounting

Question 2

This is a cost that goes straight to the
income statement and is not part of
inventory

Answer 2

Period Cost

Question 3

Sales – Variable Expenses = ? , which
is used to cover fixed expenses

Answer 3

Contribution margin

Question 4

The salary of a supervisor in a
factory falls under which cost

Answer 4

Manufacturing Overhead

Question 5

When calculating applied overhead,
do I use the estimated or actual cost
driver?

Answer 5

actual cost driver

Question 6

This is a cost that has already
been incurred and cannot be
altered by any decision made now
or in the future

Answer 6

Sunk Cost