Warm up - L3

Warm up - L3 - b allocation system c cost tracing system d...

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True/False 1. Improvements in information-gathering technologies are making it possible to trace more costs as direct. 2. Depreciation can be classified as either an inventoriable cost or a period cost, depending on what is being depreciated. 3. Costs that are difficult to change over the short run are always variable over the long run. 4.If a worker is paid for 8 hours, but is idle for 1 of those 8 hours, the 1 hour of idle time would be considered a component of direct labor. . MCQs 1. The general term used to identify both the tracing and the allocation of accumulated costs to a cost object is: a. cost accumulation b. cost assignment c. cost tracing d. conversion costing 2. The determination of a cost as either direct or indirect depends upon the: a. accounting system
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Unformatted text preview: b. allocation system c. cost tracing system d. cost object chosen 3. Which one of the following items is a direct cost? a. Customer-service costs of a multiproduct firm; Product A is the cost object. b. Printing costs incurred for payroll check processing; payroll check processing is the cost object. c. The salary of a maintenance supervisor in a multiproduct manufacturing plant; Product B is the cost object. d. Utility costs of the administrative offices; the accounting department is the cost object. 4. Kym Manufacturing provided the following information for last month: Sales $12,000 Variable costs 4,000 Fixed costs 1,000 Operating income $7,000 If sales double next month, what is the projected operating income? a. $14,000 b. $15,000 c. $18,000 d. $19,000...
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Warm up - L3 - b allocation system c cost tracing system d...

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