3310solmod05

3310solmod05 - Module 5 Answers 2-1. Cost is a more general...

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Module 5 Answers 2-1. Cost is a more general term that refers to a sacrifice of resources and may be either an opportunity cost or an outlay cost. An expense is the write-off of an outlay cost against revenues in a particular accounting period and usually pertains only to external financial reports. 2-17. (15 min.) Basic Concepts. Cost Item Fixed (F) Variable (V) Period (P) Product (M) a. Assembly line workers’ wages. .......................... V M b. Depreciation on office buildings for administrative staff. F P c. Bonuses of top executives in the company. ....... F P d. Overtime pay for assembly workers. .................. V M e. Transportation-in costs on materials purchased V M f. Training costs for operating plant machinery . .... F M g. Travel cost for sales personnel. ......................... V P h. Administrative support for sales supervisors. ..... F P i. Controller’s office rental. .................................... F P j. Cafeteria costs for the plant. .............................. F M
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2-19. (15 min.) Basic Concepts. Concept Definition 5 Period costs Costs that can more easily be attributed to time intervals. 9
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3310solmod05 - Module 5 Answers 2-1. Cost is a more general...

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