CAPE Cost and Managerial Accounting: Cost Classification 1

An Expense or a loss would be:

• Direct Cost

• Distribution Cost

• Conversion Cost

• Expired Cost

• Budgeted Cost

A cost associated with a specific cost object (product, service, department, etc.)

• Direct Cost

• Distribution Cost

• Conversion Cost

• Expired Cost

• Budgeted Cost

A ______ is any item for which costs are being separately measured

• Finished Good

• Cost Object

• Sunk Cost

• Direct Cost

Direct material, direct labour and manufacturing overheads are all:

• Product Costs

• Period Costs

• Expired Costs

• Direct Cost

Inventoriable costs are also called:

• Product Costs

• Period Costs

• Expired Costs

• Stock-up Costs

A cost primarily associated with passage of time rather than production activity:

• Product Costs

• Period Costs

• Expired Costs

• Stock-up Costs

An expected future cost:

• Opportunity Cost

• Actual Cost

• Expired Costs

• Budgeted Cost

The cost of the next best alternative foregone (best alternative given up):

• Opportunity Cost

• Actual Cost

• Expired Costs

• Budgeted Cost

Selling and Administrative Expenses

• Product Cost

• Conversion Cost

• Period Cost

• Income Statement Cost

Which two elements make up conversion cost?

• Direct Material and Direct Labour

• Direct Material and Manufacturing Overhead

• Direct Labour and Manufacturing Overhead

• Work in Process and Manufacturing Overhead