ACG 3361 Exam 1 with all Correct & 100% Verified
Answers |Latest Version |Already Graded A+
cost ✔Correct Answer-resource sacrificed or forgone to achieve a specific objective
actual cost ✔Correct Answer-cost incurred (a historical or past cost), as distinguished from a
budgeted or forecasted cost
budgeted cost ✔Correct Answer-predicted or forecasted cost (future cost) as distinguished
from an actual or historical cost
cost object ✔Correct Answer-anything for which a measurement of costs is desired
cost accumulation ✔Correct Answer-collection of cost data in some organized way by means
of an accounting system
Direct costs of a cost object ✔Correct Answer-costs related to the particular cost object that
can be traced to that object in an economically feasible (cost-effective) way
cost tracing ✔Correct Answer-describes the assignment of direct costs to a particular cost
object
Indirect costs of a costs object ✔Correct Answer-costs related to the particular cost object
that cannot be traced to that object in an economically feasible way
cost allocation ✔Correct Answer-assignment of indirect costs to a particular cost object
cost assignment ✔Correct Answer-general term that encompasses both (1) tracing
accumulated costs that have a direct relationship to a cost object and (2) allocating accumulated
costs that have an indirect relationship to a cost object
variable costs ✔Correct Answer-cost that changes in total in proportion to changes in the
related level of total activity or volume
fixed cost ✔Correct Answer-cost that remains unchanged in total for a given time period,
despite wide changes in the related level of total activity or volume
cost driver ✔Correct Answer-a variable, such as the level of activity or volume, that casually
affects costs over a given time span
relevant range ✔Correct Answer-band of normal activity level or volume in which there is a
specific relationship between the level of activity or volume and the cost in question
, unit cost (average cost) ✔Correct Answer-cost computed by dividing total cost by the number
of units; also called average cost
unit cost formula ✔Correct Answer-total manufacturing costs / number of units
manufactured
manufacturing-sector companies ✔Correct Answer-companies that purchase material and
components and convert them into various finished goods
merchandising-sector companies ✔Correct Answer-companies that purchase and then sell
tangible products without changing their basic form
service-sector companies ✔Correct Answer-companies that provide services or intangible
products to their customers
direct materials inventory ✔Correct Answer-direct materials in stock and awaiting use in the
manufacturing process
work-in-process inventory ✔Correct Answer-goods partially worked on but not yet completed
finished goods inventory ✔Correct Answer-goods completed but not yet sold
direct materials costs ✔Correct Answer-acquisition costs of all materials that eventually
become part of the cost object (work in process and then finished goods_, and that can be
traced to the cost object in an economically feasible way
direct manufacturing labor costs ✔Correct Answer-include the compensation of all
manufacturing labor that can be traced to the cost object in an economically feasible way
indirect manufacturing costs ✔Correct Answer-all manufacturing costs that are related to the
cost object but that cannot be traced to that cost object in an economically feasible way; also
called manufacturing overheard or factory overhead costs
inventoriable costs ✔Correct Answer-all costs of a product that are considered as assets in the
balance sheet when they are incurred and that become cost of goods sold only when the
product is sold
period costs ✔Correct Answer-all costs in the income statement other than cost of goods sold
Cost of direct materials ✔Correct Answer-BEG DM Inventory
+Purchases of DM
-End Inv of DM
Answers |Latest Version |Already Graded A+
cost ✔Correct Answer-resource sacrificed or forgone to achieve a specific objective
actual cost ✔Correct Answer-cost incurred (a historical or past cost), as distinguished from a
budgeted or forecasted cost
budgeted cost ✔Correct Answer-predicted or forecasted cost (future cost) as distinguished
from an actual or historical cost
cost object ✔Correct Answer-anything for which a measurement of costs is desired
cost accumulation ✔Correct Answer-collection of cost data in some organized way by means
of an accounting system
Direct costs of a cost object ✔Correct Answer-costs related to the particular cost object that
can be traced to that object in an economically feasible (cost-effective) way
cost tracing ✔Correct Answer-describes the assignment of direct costs to a particular cost
object
Indirect costs of a costs object ✔Correct Answer-costs related to the particular cost object
that cannot be traced to that object in an economically feasible way
cost allocation ✔Correct Answer-assignment of indirect costs to a particular cost object
cost assignment ✔Correct Answer-general term that encompasses both (1) tracing
accumulated costs that have a direct relationship to a cost object and (2) allocating accumulated
costs that have an indirect relationship to a cost object
variable costs ✔Correct Answer-cost that changes in total in proportion to changes in the
related level of total activity or volume
fixed cost ✔Correct Answer-cost that remains unchanged in total for a given time period,
despite wide changes in the related level of total activity or volume
cost driver ✔Correct Answer-a variable, such as the level of activity or volume, that casually
affects costs over a given time span
relevant range ✔Correct Answer-band of normal activity level or volume in which there is a
specific relationship between the level of activity or volume and the cost in question
, unit cost (average cost) ✔Correct Answer-cost computed by dividing total cost by the number
of units; also called average cost
unit cost formula ✔Correct Answer-total manufacturing costs / number of units
manufactured
manufacturing-sector companies ✔Correct Answer-companies that purchase material and
components and convert them into various finished goods
merchandising-sector companies ✔Correct Answer-companies that purchase and then sell
tangible products without changing their basic form
service-sector companies ✔Correct Answer-companies that provide services or intangible
products to their customers
direct materials inventory ✔Correct Answer-direct materials in stock and awaiting use in the
manufacturing process
work-in-process inventory ✔Correct Answer-goods partially worked on but not yet completed
finished goods inventory ✔Correct Answer-goods completed but not yet sold
direct materials costs ✔Correct Answer-acquisition costs of all materials that eventually
become part of the cost object (work in process and then finished goods_, and that can be
traced to the cost object in an economically feasible way
direct manufacturing labor costs ✔Correct Answer-include the compensation of all
manufacturing labor that can be traced to the cost object in an economically feasible way
indirect manufacturing costs ✔Correct Answer-all manufacturing costs that are related to the
cost object but that cannot be traced to that cost object in an economically feasible way; also
called manufacturing overheard or factory overhead costs
inventoriable costs ✔Correct Answer-all costs of a product that are considered as assets in the
balance sheet when they are incurred and that become cost of goods sold only when the
product is sold
period costs ✔Correct Answer-all costs in the income statement other than cost of goods sold
Cost of direct materials ✔Correct Answer-BEG DM Inventory
+Purchases of DM
-End Inv of DM
