Which of the following is NOT true ? a.The salary of the factory manager is considered to be an indirect cost of producing one unit of product. b.An indirect cost cannot be easily traced to a particular cost object. c.The classification of a cost as direct or indirect does not depend on the cost object. d.A direct cost can be easily traced to a particular cost object.

Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Answered: Which of the following is NOT true ?…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 8MC: Which of the following is not considered a product cost? A. direct materials B. direct labor C....

See similar textbooks

Similar questions

Which is not a step in analyzing the cost driver for manufacturing overhead? A. Identify the cost B. identify non-value-added costs C. analyze the effect on manufacturing overhead D. identify the correlation between the potential driver and manufacturing overhead
For which cost concept used in applying (he cost-plus, approach to product pricing are fixed manufacturing costs, fixed selling and administrative expenses, and desired profit allowed for in determining the markup? A. Total cost B. Product cost C. Variable cost D. Standard cost
In the variable costing income statement, how are the fixed manufacturing costs reported, and how are the fixed selling and administrative expenses reported?
Overhead costs are the source of product cost distortions. Do you agree or disagree? Explain.
When might activity-based costing be preferred over using a relative amount of product sales in allocating selling and administrative expenses to products?
Why are product costs assigned to the product and period costs immediately expensed?
How are nonfactory costs and costs that benefit both factory and nonfactory operations accounted for?
What are the distinguishing characteristics of variable, fixed, and semivariable factory overhead costs?
In what way do the cost of production summaries in Chapter 6, prepared using the weighted average cost method, differ from the cost of production summaries presented in Chapter 5? What is the reason for this difference?
Explain why service companies use different activity bases than manufacturing companies to classify costs as fixed or variable.
Which of the following is not considered a product cost? Select one: a. direct labor b. direct materials c. indirect materials d. selling expense
Which of the following statements is FALSE? a. There is a cause-and-effect relationship between the cost driver and the amount of cost. b. Over the long run all costs have cost drivers. c. Volume of production is a cost driver of direct manufacturing costs. d. Fixed costs have cost drivers over the short run.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Principles of Cost Accounting

Accounting

ISBN:

9781305087408

Author:

Edward J. Vanderbeck, Maria R. Mitchell

Publisher:

Cengage Learning

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

	a.	The salary of the factory manager is considered to be an indirect cost of producing one unit of product.
	b.	An indirect cost cannot be easily traced to a particular cost object.
	c.	The classification of a cost as direct or indirect does not depend on the cost object.
	d.	A direct cost can be easily traced to a particular cost object.