Work-in-processinventory aregoods partiallyworked on butnot yetcompletedThe smaller theamount of a costthe more likely it iseconomicallyfeasible to trace itto a particular costobjectA cost may bedirect for onecost object andindirect foranother costobject.Administrativesalaries is afixed cost for anautomobilemanufacturingplantInventoriablecosts becomeexpensed (costof goods sold)when goodsare sold.A cost objectis anything forwhich a costmeasurementis desiredif the volume ofsales increases(within arelevant range)total fixed costincreaseA company canincur a costwithout it beingrecorded in theaccountingsystem.Because of acost-benefittradeoff, somedirect costs maybe treated asindirect costs.Fixed cost perunit falls withan increase inproductionvolume Indirectcosts arealwaysallocated.Overtimepremium isnormallyconsidered as acomponent ofindirect laborIndirectmanufacturingcost mayinclude bothvariable andfixedAssigningindirect costsis easier thanassigningdirect costs.Opportunitycost influencesthe make orbuy decision tothe companyIndirect costscannot be tracedto a particularcost object in aneconomicallyfeasible way.Electricityexpenses is avariable cost foran insurancecompanyRework labortime isconsidered anoverhead costand not a directlabor costDepartmentstores, ie. Macy'sand Khols, areexamples of amerchandisingcompanyWood used tomanufacturechairs isconsidered adirect variable costwhen the costobject is the chairPeriod costsare expensedas incurred andare not part ofinventory costs. Manufacturingoverhead costsare also referredto as indirectmanufacturingcostsif the volume ofsales increases(within arelevant range)total variablecost decreaseif the volume ofsales increases(within arelevant range)total variablecost increasesThe incomestatement of aservice-sectorfirm reportsperiod costsonlyCost Tracingthe assignmentof direct coststo the chosencost objectif the volume ofsales increases(within arelevant range)total fixed costdecreaseMarketing cotsis included inproduct cost forpricing andproduct-mixdecisionsCost behaviorrefers to howcosts react to achange in thelevel of activityWork-in-processinventory aregoods partiallyworked on butnot yetcompletedThe smaller theamount of a costthe more likely it iseconomicallyfeasible to trace itto a particular costobjectA cost may bedirect for onecost object andindirect foranother costobject.Administrativesalaries is afixed cost for anautomobilemanufacturingplantInventoriablecosts becomeexpensed (costof goods sold)when goodsare sold.A cost objectis anything forwhich a costmeasurementis desiredif the volume ofsales increases(within arelevant range)total fixed costincreaseA company canincur a costwithout it beingrecorded in theaccountingsystem.Because of acost-benefittradeoff, somedirect costs maybe treated asindirect costs.Fixed cost perunit falls withan increase inproductionvolume Indirectcosts arealwaysallocated.Overtimepremium isnormallyconsidered as acomponent ofindirect laborIndirectmanufacturingcost mayinclude bothvariable andfixedAssigningindirect costsis easier thanassigningdirect costs.Opportunitycost influencesthe make orbuy decision tothe companyIndirect costscannot be tracedto a particularcost object in aneconomicallyfeasible way.Electricityexpenses is avariable cost foran insurancecompanyRework labortime isconsidered anoverhead costand not a directlabor costDepartmentstores, ie. Macy'sand Khols, areexamples of amerchandisingcompanyWood used tomanufacturechairs isconsidered adirect variable costwhen the costobject is the chairPeriod costsare expensedas incurred andare not part ofinventory costs. Manufacturingoverhead costsare also referredto as indirectmanufacturingcostsif the volume ofsales increases(within arelevant range)total variablecost decreaseif the volume ofsales increases(within arelevant range)total variablecost increasesThe incomestatement of aservice-sectorfirm reportsperiod costsonlyCost Tracingthe assignmentof direct coststo the chosencost objectif the volume ofsales increases(within arelevant range)total fixed costdecreaseMarketing cotsis included inproduct cost forpricing andproduct-mixdecisionsCost behaviorrefers to howcosts react to achange in thelevel of activity

Which Statement about cost is True ? - Call List

(Print) Use this randomly generated list as your call list when playing the game. There is no need to say the BINGO column name. Place some kind of mark (like an X, a checkmark, a dot, tally mark, etc) on each cell as you announce it, to keep track. You can also cut out each item, place them in a bag and pull words from the bag.


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  1. Work-in-process inventory are goods partially worked on but not yet completed
  2. The smaller the amount of a cost the more likely it is economically feasible to trace it to a particular cost object
  3. A cost may be direct for one cost object and indirect for another cost object.
  4. Administrative salaries is a fixed cost for an automobile manufacturing plant
  5. Inventoriable costs become expensed (cost of goods sold) when goods are sold.
  6. A cost object is anything for which a cost measurement is desired
  7. if the volume of sales increases (within a relevant range) total fixed cost increase
  8. A company can incur a cost without it being recorded in the accounting system.
  9. Because of a cost-benefit tradeoff, some direct costs may be treated as indirect costs.
  10. Fixed cost per unit falls with an increase in production volume
  11. Indirect costs are always allocated.
  12. Overtime premium is normally considered as a component of indirect labor
  13. Indirect manufacturing cost may include both variable and fixed
  14. Assigning indirect costs is easier than assigning direct costs.
  15. Opportunity cost influences the make or buy decision to the company
  16. Indirect costs cannot be traced to a particular cost object in an economically feasible way.
  17. Electricity expenses is a variable cost for an insurance company
  18. Rework labor time is considered an overhead cost and not a direct labor cost
  19. Department stores, ie. Macy's and Khols, are examples of a merchandising company
  20. Wood used to manufacture chairs is considered a direct variable cost when the cost object is the chair
  21. Period costs are expensed as incurred and are not part of inventory costs.
  22. Manufacturing overhead costs are also referred to as indirect manufacturing costs
  23. if the volume of sales increases (within a relevant range) total variable cost decrease
  24. if the volume of sales increases (within a relevant range) total variable cost increases
  25. The income statement of a service-sector firm reports period costs only
  26. Cost Tracing the assignment of direct costs to the chosen cost object
  27. if the volume of sales increases (within a relevant range) total fixed cost decrease
  28. Marketing cots is included in product cost for pricing and product-mix decisions
  29. Cost behavior refers to how costs react to a change in the level of activity