Acct 526 stuvia - Study guides, Class notes & Summaries

unit-level activities - ANSWERSactivities that are performed each time a unit is produced. nonunit-level activity drivers - ANSWERSfactors that measure the consumption of nonunit-level activities by products and other cost objects. examples: - batch - product-sustaining - facility-sustaining unit-level activity drivers - ANSWERSmeasure the consumption of unit-level activities. activity drivers - ANSWERSfactors that measure the consumption of activities by products and other cos...

The work of factory employees that can be physically and conveniently associated with converting raw materials into finished goods. - ANSWERSDirect Labor Work of factory employees that has no physical association with the finished product, or it is impractical to trace the costs to the goods produced. - ANSWERSIndirect labor Manufacturing costs that are indirectly associated with the manufacture of the finished product. - ANSWERSManufacturing overhead A field of accounting that provides...

Cost objects do not need to be considered for all business and personal decisions. T/F - ANSWERSFalse When providing cost estimates, it is essential to know the decision to which the cost object is related. T/F - ANSWERSTrue Product costs are recorded in inventory as an asset on the balance sheet and then are recorded on the income statement in the form of cost of goods sold as inventory is sold. T/F - ANSWERSTrue Some period costs are immediately recorded on the income statement as exp...

Overhead costs are assigned to production using an overhead application rate, whereas no such application rate is used to assign the costs of direct materials and direct labor to production. the reason for this difference in procedures is that: - ANSWERSoverhead is an indirect cost which cannot be traced easily and directly to specific units of a product an advantage of using regression analysis over the high low and scattergraph methods is that - ANSWERSregression analysis is a more precide ...