Podcast
Questions and Answers
Which of the following is NOT a characteristic of relevant cost from a manager's perspective?
Which of the following is NOT a characteristic of relevant cost from a manager's perspective?
- Future cost
- Sunk cost (correct)
- Differential cost
- Opportunity cost
Which of the following costs is NOT considered to be a direct product cost?
Which of the following costs is NOT considered to be a direct product cost?
- Direct materials
- Direct labor
- Factory overhead (correct)
- All of the above are direct product costs
What is the relationship between product cost and cost of goods sold?
What is the relationship between product cost and cost of goods sold?
- Product cost is always expensed as cost of goods sold
- Product cost is only expensed as cost of goods sold when the units are produced
- Product cost is only expensed as cost of goods sold when the units are sold (correct)
- Product cost is never expensed as cost of goods sold
Which of the following is NOT a component of prime cost?
Which of the following is NOT a component of prime cost?
What is the key difference between direct department costs and indirect department costs?
What is the key difference between direct department costs and indirect department costs?
Which of the following is NOT a type of period cost?
Which of the following is NOT a type of period cost?
What is the primary focus of Management Accounting?
What is the primary focus of Management Accounting?
Which of the following is an example of a Capital Expenditure (CapEx)?
Which of the following is an example of a Capital Expenditure (CapEx)?
What is the primary purpose of Operating Expenditures (OpEx)?
What is the primary purpose of Operating Expenditures (OpEx)?
Which of the following is included in the Cost of Goods Manufactured?
Which of the following is included in the Cost of Goods Manufactured?
What is the purpose of the Cost of Goods Sold?
What is the purpose of the Cost of Goods Sold?
Which of the following expenses are included in Distribution Expenses?
Which of the following expenses are included in Distribution Expenses?
