Manufacturing Cost Classifications Quiz
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Manufacturing Cost Classifications Quiz

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@VeritableDryad

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Questions and Answers

Which of the following costs can be easily traced to individual units of product?

  • Administrative Costs
  • Indirect Materials
  • Manufacturing Overhead
  • Direct Materials (correct)

    • What is the term for all manufacturing costs except direct materials and direct labor?

  • Direct Labor
  • Product Costs
  • Indirect Materials
  • Manufacturing Overhead (correct)

    • Which cost classification includes costs associated with general management of an organization?

  • Direct Labor
  • Administrative Costs (correct)
  • Selling Costs
  • Product Costs

    • What are all the costs that are not product costs referred to as?

    <p>Period Costs</p> Signup and view all the answers

    Which term refers to how a cost reacts to changes in the level of activity?

    <p>Cost Behavior</p> Signup and view all the answers

    Where are product costs initially assigned before being released as expenses upon sale?

    <p>Balance Sheet</p> Signup and view all the answers

    What type of cost varies in direct proportion to changes in the level of activity?

    <p>Variable Cost</p> Signup and view all the answers

    Which type of cost remains constant regardless of changes in activity?

    <p>Fixed Cost</p> Signup and view all the answers

    What are mixed costs also known as?

    <p>Semivariable Costs</p> Signup and view all the answers

    Which type of cost is a cost that can be easily traced to a specified cost object?

    <p>Direct Cost</p> Signup and view all the answers

    What is the potential benefit given up when one alternative is selected over another?

    <p>Opportunity Cost</p> Signup and view all the answers

    What is the amount that contributes toward covering fixed expenses and profits after deducting variable expenses from sales revenues?

    <p>Contribution Margin</p> Signup and view all the answers

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