Which of the following requires that the costs incurred to generate a particular revenue should be recognized as expenses in the same period that the revenue is recognized?
Materiality concept
Consistency principle
Matching principle
Going concern assumpt
Consistency principle
Which of the following best describes the wages of a sheet metal worker in a fabrication plant?
Product costs
Period costs
Non-manufacturing costs
Administrative costs
Product costs
Which of the following is common to both prime cost and conversion cost?
Manufacturing overhead
Direct materials
Non-manufacturing costs
Direct labor
Direct labor
Which of the following observations is true of period costs?
They are expensed in the period in which they are incurred.
They are included as part of the cost of manufactured goods.
They include costs that are incurred to convert materials into the finish
They are expensed in the period in which they are incurred.
Period Cost (NonManufacturing, Selling&Admin)
This includes all selling and administrative expenses.
Prime Cost
This is the sum of direct materials cost and direct labor cost.
Conversion Cost
This is the sum of direct labor and manufacturing overhead.
Product Cost (Manufacturing Cost, COGS)
This includes direct materials, direct labor, and manufacturing overhead.
Manufacturing Overhead
Indirect materials
Indirect labor
Maintance and repairs
Variable Cost
DM
DL
VARIABLE
SALES COMMISSION
Avg. Fixed Man
Fixed Man* Hours
That #/actual hrs
Total Man. Overhead
fixed
given # + variable
actual
Contribution Margin
Selling price - Variable Cost
FIXED
ALWASY THE SAME
Incremental Cost per unit
DM+ DL+ VAR. MAN. OVER
POR
...
man. over. applied
POR *DLH