Tuesday 21 January 2020

Merchandising firms consider which of the following cost elements as a period cost?


Merchandising firms consider which of the following cost elements as a period cost?
ANSWER
INCORRECT
·       
Cost of shipping merchandise to the store
·       
YOU WERE SURE AND INCORRECT
Cost of merchandise purchased for resale
·       
THE CORRECT ANSWER
Cost of leasing the retail locations
·       
Cost of import duties paid on merchandise purchased from overseas suppliers
·       
I DON'T KNOW YET
Identify the indirect cost element, assuming the cost object is one factory in which a product is manufactured for a large corporation.

ANSWER

INCORRECT
·       
Materials to produce units manufactured in the factory
·       
Factory supervisor’s salary
·       
YOU WERE SURE AND INCORRECT
Assembly labor used in the factory
·       
THE CORRECT ANSWER
CEO’s salary
·       
I DON'T KNOW YET
________ are costs that relate to the cost object but cannot be traced specifically to the cost object.

ANSWER

INCORRECT
·       
THE CORRECT ANSWER
Indirect costs
·       
Cost objects
·       
YOU WERE SURE AND INCORRECT
Labor costs to assemble units
·       
Direct costs
·       
I DON'T KNOW YET
The ________ is the cost of making one more unit.

ANSWER

INCORRECT
·       
total cost
·       
average cost
·       
YOU WERE SURE AND INCORRECT
product cost
·       
THE CORRECT ANSWER
marginal cost
·       
I DON'T KNOW YET
An example of a service company includes ________.

ANSWER

INCORRECT
·       
General Motors Corporation
·       
Best Buy
·       
THE CORRECT ANSWER
Verizon
·       
YOU WERE SURE AND INCORRECT
Sam’s Club
·       
I DON'T KNOW YET
Merchandising firms consider which of the following cost elements as a period cost?

ANSWER

INCORRECT
·       
THE CORRECT ANSWER
Cost of leasing the retail locations
·       
Cost of merchandise purchased for resale
·       
Cost of shipping merchandise to the store
·       
YOU WERE SURE AND INCORRECT
Cost of import duties paid on merchandise purchased from overseas suppliers
·       
I DON'T KNOW YET
A direct cost ________.

ANSWER

INCORRECT
·       
THE CORRECT ANSWER
is a cost that can be traced to the cost object
·       
YOU WERE SURE AND INCORRECT
is always expensed in the period in which it is incurred and never becomes part of an inventory account
·       
includes the costs of all resources used throughout the value chain
·       
never has a one-to-one correlation between the cost and the cost object
·       
I DON'T KNOW YET
Identify the indirect cost element, assuming the cost object is one factory in which a product is manufactured for a large corporation.

ANSWER

INCORRECT
·       
THE CORRECT ANSWER
CEO’s salary
·       
YOU WERE SURE AND INCORRECT
Materials to produce units manufactured in the factory
·       
Factory supervisor’s salary
·       
Assembly labor used in the factory
·       
I DON'T KNOW YET
Merchandising firms consider which of the following cost elements as a period cost?

ANSWER

INCORRECT
·       
THE CORRECT ANSWER
Cost of leasing the retail locations
·       
Cost of import duties paid on merchandise purchased from overseas suppliers
·       
Cost of shipping merchandise to the store
·       
YOU WERE SURE AND INCORRECT
Cost of merchandise purchased for resale
·       
I DON'T KNOW YET
A direct cost ________.

ANSWER

INCORRECT
·       
is always expensed in the period in which it is incurred and never becomes part of an inventory account
·       
never has a one-to-one correlation between the cost and the cost object
·       
YOU WERE SURE AND INCORRECT
includes the costs of all resources used throughout the value chain
·       
THE CORRECT ANSWER
is a cost that can be traced to the cost object
·       
I DON'T KNOW YET
Utilities, plant insurance, and depreciation expense are examples of ________.

ANSWER

INCORRECT
·       
YOU WERE SURE AND INCORRECT
period expenses
·       
administrative expenses
·       
THE CORRECT ANSWER
other indirect manufacturing costs
·       
costs that are expensed as incurred
·       
I DON'T KNOW YET


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