BSNS115 Week 6

Direct costs are...

• easily and conveniently traced to a unit of product or other cost objective

• not easily and conveniently traced to a unit of product or other cost objective

What kind of cost would not be incurred if the product or activity were discontinued.

• Indirect cost

• Fixed cost

• Direct cost

• Semi-variable cost

Indirect cost...

• can be easily and conveniently traced to a unit of product or other cost object

• cannot be easily and conveniently traced to a unit of product or other cost object

The product cost is

• The direct cost

• the sum of a product's direct costs (raw materials and direct labour) and an allocation of overhead

• The indirect cost

What is overhead?

Period costs are..

• All other costs that are also product costs

• Usually a lump sum for the year/period

• Usually a regular payment throughout the year

What are the three total costs equations?

What are the three inventory accounts and what order do they occur?

• Raw materials, Finished goods, Materials in Progress

• Finished work, raw goods, work in progress

• Work in progress, Finished materials, raw goods

• Raw materials, work in progress, finished goods

Manufacturing overhead (OH) is applied to each job using a

The cost allocation base should be a

• cost driver that causes overhead

• cost driver that does not causes overhead

• cost driver that minimises overhead