Cost Tracingthe assignmentof direct coststo the chosencost objectAdministrativesalaries is afixed cost for anautomobilemanufacturingplantA cost objectis anything forwhich a costmeasurementis desiredIndirectmanufacturingcost mayinclude bothvariable andfixedMarketing cotsis included inproduct cost forpricing andproduct-mixdecisionsif the volume ofsales increases(within arelevant range)total variablecost decreaseThe smaller theamount of a costthe more likely it iseconomicallyfeasible to trace itto a particular costobjectInventoriablecosts becomeexpensed (costof goods sold)when goodsare sold.Work-in-processinventory aregoods partiallyworked on butnot yetcompletedA cost may bedirect for onecost object andindirect foranother costobject.Electricityexpenses is avariable cost foran insurancecompanyIndirect costscannot be tracedto a particularcost object in aneconomicallyfeasible way.Opportunitycost influencesthe make orbuy decision tothe companyif the volume ofsales increases(within arelevant range)total fixed costincreasePeriod costsare expensedas incurred andare not part ofinventory costs. Fixed cost perunit falls withan increase inproductionvolumeThe incomestatement of aservice-sectorfirm reportsperiod costsonlyDepartmentstores, ie. Macy'sand Khols, areexamples of amerchandisingcompanyRework labortime isconsidered anoverhead costand not a directlabor costManufacturingoverhead costsare also referredto as indirectmanufacturingcostsAssigningindirect costsis easier thanassigningdirect costs.Cost behaviorrefers to howcosts react to achange in thelevel of activityif the volume ofsales increases(within arelevant range)total variablecost increasesif the volume ofsales increases(within arelevant range)total fixed costdecreaseWood used tomanufacturechairs isconsidered adirect variable costwhen the costobject is the chairOvertimepremium isnormallyconsidered as acomponent ofindirect laborA company canincur a costwithout it beingrecorded in theaccountingsystem.Because of acost-benefittradeoff, somedirect costs maybe treated asindirect costs. Indirectcosts arealwaysallocated.Cost Tracingthe assignmentof direct coststo the chosencost objectAdministrativesalaries is afixed cost for anautomobilemanufacturingplantA cost objectis anything forwhich a costmeasurementis desiredIndirectmanufacturingcost mayinclude bothvariable andfixedMarketing cotsis included inproduct cost forpricing andproduct-mixdecisionsif the volume ofsales increases(within arelevant range)total variablecost decreaseThe smaller theamount of a costthe more likely it iseconomicallyfeasible to trace itto a particular costobjectInventoriablecosts becomeexpensed (costof goods sold)when goodsare sold.Work-in-processinventory aregoods partiallyworked on butnot yetcompletedA cost may bedirect for onecost object andindirect foranother costobject.Electricityexpenses is avariable cost foran insurancecompanyIndirect costscannot be tracedto a particularcost object in aneconomicallyfeasible way.Opportunitycost influencesthe make orbuy decision tothe companyif the volume ofsales increases(within arelevant range)total fixed costincreasePeriod costsare expensedas incurred andare not part ofinventory costs. Fixed cost perunit falls withan increase inproductionvolumeThe incomestatement of aservice-sectorfirm reportsperiod costsonlyDepartmentstores, ie. Macy'sand Khols, areexamples of amerchandisingcompanyRework labortime isconsidered anoverhead costand not a directlabor costManufacturingoverhead costsare also referredto as indirectmanufacturingcostsAssigningindirect costsis easier thanassigningdirect costs.Cost behaviorrefers to howcosts react to achange in thelevel of activityif the volume ofsales increases(within arelevant range)total variablecost increasesif the volume ofsales increases(within arelevant range)total fixed costdecreaseWood used tomanufacturechairs isconsidered adirect variable costwhen the costobject is the chairOvertimepremium isnormallyconsidered as acomponent ofindirect laborA company canincur a costwithout it beingrecorded in theaccountingsystem.Because of acost-benefittradeoff, somedirect costs maybe treated asindirect costs. Indirectcosts arealwaysallocated.

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