Semester Test 1 Flashcards
1
Q
Conversion Costs =
A
Manufacturing OH + Direct Labour
2
Q
Prime costs =
A
Direct Labour + Direct Materials
3
Q
Product costs/inventoriable costs are
A
-All costs that are involved in the purchase/manufacture of goods
-DM + DL + OH
4
Q
Period Costs are
A
All assets not included in product costs
5
Q
Define opportunity costs
A
-The potential benefit that is given up when one alternative is selected
-Basically Opportunistic cost (s/o EKN)
6
Q
Define sunk costs
A
-A cost that already has been incurred and that cannot be changed by any decision made now/in the future
7
Q
The contribution format =
A
Sales
Less: Variable Expenses
=Contribution Margin
Less: Fixed Cost
=Operating Profit
