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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