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Accounting 4 - cost accounting

Explain why the answer is chosen:

13. The three sections of a statement of cost of goods manufactured include:

a.variable expenses, contribution margin, fixed expenses.
b. direct costs, indirect costs, operating profit.
c. sales revenue, gross profit, selling and administrative expenses.
d, raw material, direct labor, manufacturing overhead.

14. In order to achieve higher quality cost information from the assignment of overhead costs to products manufactured, the use of a predetermined overhead rate is being replaced by:

a. activity-based costing
b. absorption costing
c. job order costing
d. process costing

15. An example of a cost that is likely to have a direct relationship with products being manufactured:

a. production labor costs.
b. sales force salaries.
c. depreciation of production equipment.
d. salaries of production supervisors

Solution Preview

13. The three sections of a statement of cost of goods manufactured include:

a.variable expenses, contribution margin, fixed expenses.
b. direct costs, indirect costs, operating profit.
c. sales revenue, gross profit, selling and administrative expenses.
d, raw material, direct labor, manufacturing overhead.

The COGM statement is a detail of the activity in work ...

Solution Summary

A sentence explains why each choice was made.

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