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Strayer ACC 350 WK 3 Quiz 2 Chapter 2




Question;ACC 350 WK 3 Quiz 2 Chapter 2;1) Products, services, departments, and customers may be cost objects. Answer;2) Costs are accounted for in two basic stages: assignment followed by accumulation. Answer;3) Actual costs and budgeted costs are two different terms referring to the same thing. Answer;4) Accountants define a cost as a resource to be sacrificed to achieve a specific objective. Answer;5) A cost object is always either a product or a service. Answer;6) A department could be considered a cost object. Answer;7) The same cost may be direct for one cost object and indirect for another cost object. Answer: 8) Assigning direct costs poses more problems than assigning indirect costs. Answer;9) Improvements in information-gathering technologies are making it possible to trace more costs as direct. Answer;10) Misallocated indirect costs may lead to promoting products that are not profitable. Answer;11) The materiality of the cost is a factor in classifying the cost as a direct or indirect cost. Answer;12) The cost of a customized machine only used in the production of a single product would be classified as a direct cost. Answer;13) Some fixed costs may be classified as direct manufacturing costs. Answer;14) The distinction between direct and indirect costs is clearly set forth in Generally Accepted Accounting Principles (GAAP). Answer: 15) Fixed costs have no cost driver in the short run, but may have a cost driver in the long run. Answer;16) Costs that are difficult to change over the short run are always variable over the long run. Answer;17) A decision maker cannot adjust capacity over the short run. Answer;18) Fixed costs vary with the level of production or sales volume. Answer;19) Currently, most administrative personnel costs would be classified as fixed costs. Answer;20) Fixed costs depend on the resources used, not the resources acquired. Answer;21) The variable cost per unit of a product should stay the same throughout the relevant range of production. Answer;22) An appropriate cost driver for shipping costs might be the number of units shipped. Answer: 23) When making decisions using fixed costs, the focus should be on total costs and not unit costs. Answer;24) When 50,000 units are produced the fixed cost is $10;per unit. Therefore, when 100,000 units are produced fixed costs will;remain at $10 per unit. Answer;25) A unit cost is computed by dividing total cost by the number of units. Answer;26) Unit costs and average costs are really the same thing. Answer;27) Service-sector companies provide services or intangible products to their customers. Answer;28) America on Line (AOL) would be an example of a merchandising company. Answer;29) Merchandising companies purchase products and sell them to customers without changing their basic form. Answer;30) Merchandising companies only hold two types of inventories: merchandise inventory, and direct material. Answer;More Questions are Included...


Paper#39243 | Written in 18-Jul-2015

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