5 Costs of normal spoilage are usually accounted for as Select one: a. part of the cost of goods manufactured b. a liability in the balance sheet c. an asset in the balance sheet d. a separate line item in the income statement e. part of the cost of goods sold

7

Explain the meaning of (A) differential revenue, (B) differential cost, and (C) differential profit (loss).

Whether any of the following sentences about abnormal spoiling is true? a. It is considered to be part of production.b. It is normally treated as a period costc. It is normally treated as a product cost.d. It is prorated between cost of goods sold and inventory.

Revenue minus all direct costing of making the goods or supplying the service is known as?a. Gross profitb. Cost of salesc. Expensesd. Net profit

Cost of goods sold is an operating expense.A.TrueB.False

Period cost is O A. inventoriable cost B. allocated between sold and unsold C. fully expense in the period incurred D. none of the choices

MULTIPLE CHOICE: 1. Costs that are treated as assets until the product is sold are called A. Product cost B. Period cost C. Conversion cost D. None of these 2. Which of the following appears in the balance sheet debit column of a worksheet? A. Service revenue B. Income summary C. Owner withdrawals D. Accounts Payable

3. As product costs expire(expensed), they become part of a. selling expenses. b. inventory. C. cost of goods sold. d. sales revenue.

Statement 1: Any loss acquired when the costs related to processing, storing, and disposing of by-products is greater than its sales value becomes an additional cost of the by-products. Statement 2: The incremental sales revenue, a basis for decision-making in incurring additional costs for further processing a product, is attainable beyond the split-off point. A. Both statements are trueB. Both statements are falseC. Statement I is true, Statement II is falseD. Statement I is false, Statement II is true