Financial Statements and Manufacturing Costs Quiz
5 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which statement is true about expired costs on the financial statement?

  • Expired costs are part of inventory.
  • Expired costs are listed on the balance sheet.
  • Expired costs are part of prime costs.
  • Expired costs are listed on the income statement. (correct)
  • Which costs are classified as unexpired on the financial statement?

  • Prime costs (correct)
  • Direct materials
  • Direct labor
  • Manufacturing overhead
  • What is the formula for prime costs?

  • Prime costs = Direct materials + Manufacturing overhead
  • Prime costs = Direct labor + Manufacturing overhead + Inventory
  • Prime costs = Direct materials + Direct labor (correct)
  • Prime costs = Direct labor + Manufacturing overhead
  • What is the formula for conversion costs?

    <p>Conversion costs = Direct labor + Manufacturing overhead</p> Signup and view all the answers

    Which statement is true about total step costs?

    <p>Total step costs remain constant in total.</p> Signup and view all the answers

    Study Notes

    Cost Classification on Financial Statement

    • Expired costs are reported on the income statement as an expense.
    • Unexpired costs are reported on the balance sheet as an asset.

    Cost Formulas

    • The formula for prime costs is: Direct Materials + Direct Labor.
    • The formula for conversion costs is: Direct Labor + Manufacturing Overhead.

    Total Step Costs

    • Total step costs vary with each step or stage of production, rather than with the number of units produced.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Test your knowledge on cost object association, direct and indirect classification on financial statements, and the composition of manufacturing costs in this quiz. Explore concepts such as expired and unexpired costs, product cost vs. period cost, prime cost vs. conversion cost, and more.

    More Like This

    Cost Accounting Quiz
    5 questions

    Cost Accounting Quiz

    AdoredAmetrine avatar
    AdoredAmetrine
    Cost Principle in Accounting
    25 questions
    Financial Accounting Fundamentals Quiz
    10 questions
    Intermediate Accounting - Chapter 8
    22 questions
    Use Quizgecko on...
    Browser
    Browser