Cost Term (BMK)

What is the term used to refer to a sacrificed or forgone resource to achieve a specific objective?

• Actual cost

• Budgeted cost

• Cost

• Conversion costs

Which type of costs can be conveniently and economically traced to a cost object?

• Direct costs of a cost object

• Indirect costs of a cost object

• Indirect manufacturing costs

• Direct manufacturing labor costs

What type of costs change in total in proportion to changes in the related level of activity or volume of output produced?

• Fixed costs

• Variable costs

• Idle time

• Overtime premium

What is the term used to refer to all direct manufacturing costs including materials and labor?

• Direct material costs

• Conversion costs

• Direct manufacturing labor costs

• Prime costs

Which type of costs are considered assets in a company's balance sheet when incurred and expensed as cost of goods sold only when the product is sold?

• Direct material costs

• Direct labor

• Inventoriable costs

• Period costs

What is the term used to refer to the band or range of normal activity level in which there is a specific relationship between the level of activity and the cost in question?

• Cost driver

• Variable costs

• Fixed costs

• Relevant range

Which type of costs are all costs in the income statement other than cost of goods sold?

• Direct costs of a cost object

• Indirect costs of a cost object

• Period costs

• Conversion costs

What is the term used to refer to the collection of cost data in an organized way by means of an accounting system?

• Cost allocation

• Cost accumulation

• Cost tracing

• Cost assignment

Which type of costs are constant on a per-unit basis?

• Fixed costs

• Idle time

• Variable costs

• Overtime premium

What is the term used to refer to the compensation of all manufacturing labor that can be traced to the cost object?

• Direct material costs

• Prime costs

• Direct manufacturing labor costs

• Conversion costs