A cost is treated as a direct cost when is it ________. ? both possible and reasonable to trace it to a cost object ? a material used in production of the product ? a labor cost ? not worth the effort to trace it to a cost object
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Step 1: A direct cost is a cost that can be directly traced to a specific cost object. Show more…
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Which of the following statements concerning direct and indirect costs is NOT true? Multiple Choice Whether a particular cost is classified as direct or indirect does not depend on the cost object. A direct cost is one that can be easily traced to the particular cost object. The factory manager's salary would be classified as an indirect cost of producing one unit of product. A particular cost may be direct or indirect, depending on the cost object.
Jennifer S.
There is no convenient or economical way to trace a(n) _______ from the cost to the cost pool or from the cost pool to the cost object.
Haricharan G.
1) Which of the following would most likely be a direct cost in a manufacturing company? A) supervision and engineering B) utilities C) repairs D) utilities and repairs E) raw materials 2) A grouping of individual cost items is called a A) cost objective B) costing group C) cost department D) cost pool E) cost base. 3) Which of the following would be appropriately costed using a process costing system? A) oil refining B) a law firm managing individual legal cases C) assembly of individual aircraft by Bombardier D) movies produced by Lions Gate Entertainment E) audit engagements performed by KPMG 4) The first step in Job costing is to A) identify the cost object B) identify the direct costs C) select the cost allocation base D) identify the indirect costs E) compute the rate per unit. 5) Information is typically collected for cost allocation purposes through A) an information databank B) computer programs C) source documents D) time surveys E) interviewing workers. 6) Which of the following statements about normal costing is TRUE? A) Direct costs and indirect costs are allocated using an actual rate B) Direct costs and indirect costs are traced using budgeted rates C) Direct costs are traced using a budgeted rate, and indirect costs are allocated using an actual rate D) Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate E) Direct costs are traced by using the actual direct-cost rate times the budgeted quantity of the direct costs input.
Adi S.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
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