ACCT 2300_chapter 2 quiz Solutions (both)

ACCT 2300_chapter 2 quiz Solutions (both) - ACCT 2300...

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ACCT 2300 – Chapter 2 Quiz ____1. Manufacturing overhead includes: a. all direct material, direct labor and administrative costs. b. all manufacturing costs except direct labor. c . all manufacturing costs except direct labor and direct materials. d. all selling and administrative costs. Manufacturing overhead includes all costs related to manufacturing except direct materials and direct labor. MOH costs include things like depreciation on FACTORY equipment, salaries of shift supervisors, electrical costs for the FACTORY (only), property taxes for the factory, rent on the factory, facilities for the factory workers, etc… ____2. Direct costs: a. are incurred to benefit a particular accounting period. b. are incurred due to a specific decision. c . can be easily traced to a particular cost object. d. are the variable costs of producing a product. Direct costs are costs that can be easily traced to a particular cost object. The key is to identify the cost object first and then determine if the cost can be directly traced to it. For example, let’s say you have a company with several different departments, all of which are cost centers (meaning that they are responsible for all of their costs). Let’s use the salaries of the call center operators in our example. If our cost object is a particular customer, then the salaries of the call center operators is an indirect cost of the customer, because we cannot easily trace to the customer the percentage of that call center operator’s time that was used helping the customer. (Note: You could do job logs, where you track each customer and the amount of time spent assisting that customer, but in a call center environment, this would be too costly and
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This note was uploaded on 02/14/2010 for the course ACCT 203 taught by Professor King during the Winter '09 term at Shoreline.

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ACCT 2300_chapter 2 quiz Solutions (both) - ACCT 2300...

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