Managerial Accounting quiz 1

Question 1

Direct costs

Answer 1

easily and conveniently traceable to the cost object

Question 2

Indirect costs

Answer 2

opposite direct costs, cannot be easily or conveniently traced to cost object

Question 3

Product costs

Answer 3

Any cost to get the product ready for sale

Question 4

period costs

Answer 4

Any cost associated with the product expensed in a related period of time like rent and salaries

Question 5

Variable costs

Answer 5

as activity levels change the cost will change in a proportional manner. same cost per unit

Question 6

fixed costs

Answer 6

as activity levels change costs will stay the same