Management Accounting: Expenses and Profit Management

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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?

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?

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?

Factory overhead Signup and view all the answers

What is the key difference between direct department costs and indirect department costs?

Direct costs are directly identified with the department, while indirect costs are not Signup and view all the answers

Which of the following is NOT a type of period cost?

Direct materials Signup and view all the answers

What is the primary focus of Management Accounting?

Reducing expenses and increasing profit Signup and view all the answers

Which of the following is an example of a Capital Expenditure (CapEx)?

Construction of a new factory Signup and view all the answers

What is the primary purpose of Operating Expenditures (OpEx)?

To support normal operating activities Signup and view all the answers

Which of the following is included in the Cost of Goods Manufactured?

Direct labor costs Signup and view all the answers

What is the purpose of the Cost of Goods Sold?

To match the production cost to the revenue earned Signup and view all the answers

Which of the following expenses are included in Distribution Expenses?

Shipping costs for delivering products Signup and view all the answers

Management Accounting: Expenses and Profit Management

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