COST ACCOUNTING REVIEW

INCLUDES THOSE MATERIALS WHICH BECOME AN INTEGRAL PART OF A FINISHED PRODUCT, AND WHICH CAN BE CONVENIENTLY TRACED IT.

• DIRECT MATERIALS

• DIRECT LABOR

• MANUFACTURING OVERHEAD

• MANUFACTURING COST

CONSIST OF THOSE LABOR COSTS WHICH ARE PHYSICALLY TRACEABLE TO THE CREATION OF PRODUCTS IN A HANDS-ON SENSE.

• DIRECT MATERIALS

• DIRECT LABOR

• MANUFACTURING OVERHEAD

• MANUFACTURING COST

CONSIST OF ALL COSTS OF MANUFACTURING, EXCEPT DIRECT MATERIALS AND DIRECT LABOR.

• MANUFACTURING COST

• MANUFACTURING OVERHEAD

• NON- MANUFACTURING COST

• ADMINISTRATIVE EXPENSE

INCLUDE ALL COSTS ASSOCIATED WITH THE MARKETING OF FINISHED PRODUCTS, INCLUDING COMMISSIONS, DEPRECIATION OF DELIVERY EQUIPMENT, DEPRECIATION OF FINISHED GOODS WAREHOUSES AND ADVERTISING.

• EXPENSE

• ADMINISTRATIVE EXPENSE

• SELLING EXPENSE

• OTHER EXPENSES

INCLUDE ALL COST ASSOCIATED WITH THE GENERAL ADMINISTRATION OF AN ORGANIZATION, INCLUDING SECRETARIAL SALARIES, DEPRECIATION OF GENERAL ADMINISTRATIVE FACILITIES AND EQUIPMENT, AND EXECUTIVE COMPENSATION.

• EXPENSE

• OPERATING EXPENSE

• SELLING EXPENSE

• ADMINISTRATIVE EXPENSE

PRODUCT COST INCLUDES DIRECT MATERIALS, DIRECT LABOR, AND MANUFACTURING OVERHEAD WHILE PERIOD COST INCLUDESS SELLING AND ADMINISTRATIVE EXPENSES.

• BOTH STATEMENT ARE TRUE

• STATEMENT 1 IS CORRECT WHILE STATEMENT 2 IS NOT CORRECT

• STATEMENT 1 IS INCORRECT WHILE STATEMENT 2 IS CORRECT

• BOTH STATEMENT ARE FALSE

THE BALANCE SHEET OF A MANUFACTURING COMPANY CONTAINS 3 INVENT0RY ACCOUNTS:

• DIRECT MATERIALS, INDIRECT MATERIALS, EXPENSES

• RAW MATERIALS, INVENTORIES, FINISHED GOODS

• RAW MATERIALS, WORK IN PROCESS, FINISHED GOODS

• RAW MATERIALS, WORK IN PROCESS, UNFINISHED GOODS

WHAT ARE THE FIVE CATEGORIES OF LABOR COST?

• DIRECT LABOR,

  INDIRECT LABOR,

  IDLE TIME,

  OVERTIME PREMIUM AND LABOR FRINGE BENEFITS.

• DIRECT LABOR, INDIRECT LABOR, MANUFACTURING COST, OVERTIME PREMIUM AND IDLE COST

• DIRECT LABOR, INDIRECT LABOR, PERIOD COST, IDLE TIME AND DIRECT MATERIALS

• DIRECT LABOR, INDIRECT LABOR, IDLE TIME, OVERTIME PREMIUM, AND MANUFACTURING OVERHEAD

ARE THOSE COST WHICH VARY, IN TOTAL, IN DIRECT PROPORTION TO CHANGES IN THE VOLUME OF LEVEL OF ACTIVITY

• SELLING COST

• LABOR COST

• VARIABLE COST

• FIXED COST

INCLUDES DEPRECIATION, SUPERVISORY SALARIES AND RENT

• VARIABLE COST

• LABOR COST

• FIXED COST

• SALARY COST