fill in the blanks.\n1. selling can be either a/an ______ or ______ cost.\n2. a/an ______ cost cant be…

fill in the blanks.\n1. selling can be either a/an ______ or ______ cost.\n2. a/an ______ cost cant be traced easily to the particular cost object under consideration.\n3. advertising and sales commissions are examples of ______ costs.\n4. ______ cost equals labor cost plus manufacturing overhead cost.\n5. thread thats used in the production of mattresses is an indirect material thats therefore classified as ______.\n6. ______ is a part of prime cost and conversion cost.\n7. ______ cost is the sum of direct labor cost and direct materials cost.\n8. product costs are recorded as ______ in the period in which the related products are sold.\n9. depreciation of manufacturing equipment is a/an ______ cost.\n10. rent on a factory building used in the production process would be classified as a/an ______ cost and as a/an ______ cost.\n11. units of product that have been completed but arent yet sold to customers are included in ______.\n12. quality of ______ is the degree to which an actual product meets its design specifications and is free of defects or other problems that might affect appearance or performance.\n13. ______ costs result from identification of defects during the appraisal process. such costs may include scrap, rejected products, rework, and downtime.\n14. a/an ______ cost has already been incurred and cant be changed by any decision now or in the future.\n15. the ______ is the range of activity in which assumptions about variable and fixed cost behavior is valid.

fill in the blanks.\n1. selling can be either a/an ______ or ______ cost.\n2. a/an ______ cost cant be traced easily to the particular cost object under consideration.\n3. advertising and sales commissions are examples of ______ costs.\n4. ______ cost equals labor cost plus manufacturing overhead cost.\n5. thread thats used in the production of mattresses is an indirect material thats therefore classified as ______.\n6. ______ is a part of prime cost and conversion cost.\n7. ______ cost is the sum of direct labor cost and direct materials cost.\n8. product costs are recorded as ______ in the period in which the related products are sold.\n9. depreciation of manufacturing equipment is a/an ______ cost.\n10. rent on a factory building used in the production process would be classified as a/an ______ cost and as a/an ______ cost.\n11. units of product that have been completed but arent yet sold to customers are included in ______.\n12. quality of ______ is the degree to which an actual product meets its design specifications and is free of defects or other problems that might affect appearance or performance.\n13. ______ costs result from identification of defects during the appraisal process. such costs may include scrap, rejected products, rework, and downtime.\n14. a/an ______ cost has already been incurred and cant be changed by any decision now or in the future.\n15. the ______ is the range of activity in which assumptions about variable and fixed cost behavior is valid.

Answer

Brief Explanations:

  1. Selling costs can be either direct (traceable to a specific product or sales - related activity) or indirect (not easily traceable).
  2. An indirect cost is hard to link to a particular cost object.
  3. Advertising and sales commissions are selling costs as they are related to promoting and making sales.
  4. Conversion cost is labor cost plus manufacturing overhead cost.
  5. Indirect materials are part of manufacturing overhead.
  6. Direct labor is a part of prime cost (direct materials + direct labor) and conversion cost (direct labor+ manufacturing overhead).
  7. Prime cost is the sum of direct labor and direct materials cost.
  8. Product costs are recorded as cost of goods sold when products are sold.
  9. Depreciation of manufacturing equipment is a manufacturing overhead cost.
  10. Rent on a factory building is a manufacturing overhead cost and a fixed cost.
  11. Completed but unsold products are in finished goods inventory.
  12. Quality of conformance measures how well a product meets its design specs.
  13. Internal failure costs occur due to defect identification during appraisal.
  14. A sunk cost is already incurred and unchangeable.
  15. The relevant range is where assumptions about cost behavior hold.

Answer:

  1. direct; indirect
  2. indirect
  3. selling
  4. Conversion
  5. manufacturing overhead
  6. Direct labor
  7. Prime
  8. cost of goods sold
  9. manufacturing overhead
  10. manufacturing overhead; fixed
  11. finished goods inventory
  12. conformance
  13. Internal failure
  14. sunk
  15. relevant range