12 Questions
Which of the following costs can be easily traced to individual units of product?
Direct Materials
What is the term for all manufacturing costs except direct materials and direct labor?
Manufacturing Overhead
Which cost classification includes costs associated with general management of an organization?
Administrative Costs
What are all the costs that are not product costs referred to as?
Period Costs
Which term refers to how a cost reacts to changes in the level of activity?
Cost Behavior
Where are product costs initially assigned before being released as expenses upon sale?
Balance Sheet
What type of cost varies in direct proportion to changes in the level of activity?
Variable Cost
Which type of cost remains constant regardless of changes in activity?
Fixed Cost
What are mixed costs also known as?
Semivariable Costs
Which type of cost is a cost that can be easily traced to a specified cost object?
Direct Cost
What is the potential benefit given up when one alternative is selected over another?
Opportunity Cost
What is the amount that contributes toward covering fixed expenses and profits after deducting variable expenses from sales revenues?
Contribution Margin
Test your knowledge on the different classifications of manufacturing costs, including direct materials, direct labor, and manufacturing overhead. Learn about how costs are categorized in the production process.
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