It is consists of wages paid to factory employees who work directly on the product being manufactured.

These are costs incurred during the past period.

These costs remain unchanged for a given time period regardless of a change in activity.

Total direct materials + direct labor costs =

Cost of goods available for sale – ending inventory of merchandise

Gross Purchases + Transportation-in =_______.

These are costs that are attached to the product and matched with the revenue in the period in which the product is sold.

This account carries the costs of direct materials that is used in the manufacturing operations.

These are costs that are not directly traceable to the cost object.

When labor costs are incurred but are not directly involved in the conversion of materials into finished products, it is classified as

When labor costs are incurred but are not directly involved in the conversion of materials into finished products, it is classified as

When labor costs are incurred but are not directly involved in the conversion of materials into finished products, it is classified as

It represents the delivered cost of materials and parts, which enter into and become part of the finished product.

These costs that change directly in proportion to changes in activity/ volume.

These costs that change directly in proportion to changes in activity/ volume.

The cost of all raw material and production supplies that have been purchased but not used at the end of the period.

These are non-inventoriable costs, deducted as expenses during the current period.

It includes all costs incurred to convert the direct materials into the finished product.

These are cost associated with goods partially completed at the end of the period.

These are a predetermined cost estimate that should be attained, usually expressed in terms of costs per unit.

These are past costs that have been incurred and are irrelevant to a future decision.

These are costs associated with the next unit or the next project or incremental cost associated with an additional project.

It is used to represent the expected costs cost for a given period of time.

The goods that a company owns and expects to sell to its customers.

Cash discounts from the point of buyers are called as

A cash discount taken by customer against an amount owed to seller.

A reduction below a list price that is negotiated in setting the selling price of goods.

An agreement that ownership of goods is transferred at the seller’s place of business.

A reduction in a receivable or payable that is granted if it is paid within the discount period.

The difference between net sales and cost of goods sold.

The time period in which a cash discount is available.

An agreement that the ownership of goods is transferred at the buyer’s place of business.

The entity issuing the check is the payor, while the receiver is the

When the seller pays the transportation costs before shipping the goods sold, it is known as ________.

This inventory system updates the inventory account at the time of purchase and time of sale.

When the buyer shoulders the shipping costs, the freight term is known as

It is a formal notice to the debtor detailing the accounts already due.

This inventory system is commonly used by the business with relatively sell inexpensive or low valued goods, only at the end of period when the inventory is counted.

It is given to encourage consumer to pay their accounts promptly.

It is prepared by the seller of goods and sent to the buyer.

This term refers to goods acquired by the business for the purpose of resale to consumer. 

Which of the following is the major source of revenue for a merchandising business?

Which of the following is the major source of revenue for a manufacturing business?

Which of the following is not considered as a product cost? 

Which of the following is not classified as manufacturing overhead?

Which of the following are prime costs?

Rent on factory machinery

Insurance on factory building and equipment.

Cutting oils used in machining operations.

Plant electrician's salaries.

Cost of paper towels in a factory employee's washroom.

Cost of paper towels in a factory employee's washroom.

Brass rods used in making plumbing products.

Steel used in making garden tools.

Sales commissions of marketing staff.

Wages of artists preparing ads for grocery chain. 

Wood used in manufacturing cabinets.

Labor in the repair and maintenance section.

Janitorial supplies for a sales branch office.

It is the authority to command action or give orders to subordinates.

It is reporting pertinent information to management and others for internal and external users.

It is the process of accomplishing work through and with people.

It is a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail.

It is the authority to advice but not command others and is exercised laterally or upward.

It is the process of determination of the reasons for the reported activity and its relationship with other economics events and circumstances.

The chief management accounting executive of an organization is called 

It involves checking the performance of activities against the plan or standards set.

It is the systematic recording of business transactions leading to the preparation of financial statements.

It is the right to command action laterally or downward with regard to a specific function or specialty.

These are income generated from the sale of of finished goods to consumers rather than from manufacture of goods and services.

These are income generated from the sale of finished goods to consumers rather than from manufacture of goods and services.

It is the expense of buying and preparing the merchandise.

The following are recorded to debit account except

The difference between net sales and cost of goods sold for a merchandising business is:

When purchases of merchandise are made on account, the transaction would be recorded with the following entry:

When a corporation sells merchandise and the terms are FOB shipping point, the seller would record the transportation costs with the following entry:

Which of the following would be reported o the retained earnings statement for the current year?

Cost of merchandise sold would be classified as:

The discount period for credit terms f 1/10, n/30 is:

The sales discount is based on :

Which of the following accounts is credited by the seller when merchandise purchases are paid within the discount period?

Trade discounts represent a discount offered to the purchasers for quick payment.

A sales discount represents a reduction, not in the selling price of a product, but in the amount to be paid by a credit customer if payment is made within a specified period of time.

A sales discounts account is an expense account.

A sales returns account is an expense account.

A sales allowance is recorded as a debit to Accounts Receivable and a credit to Sales Allowances.

For inventory that is shipped FOB destination, title transfers from the seller to the buyer once the seller ships the inventory.

For inventory that is shipped FOB shipping point, title transfers from the seller to the buyer once the seller ships the inventory.

Freight-in is included in the cost of purchases.