Kindly answer questions 1-3: 1.) Discretionary costs are costs that must be incurred because of past decision, contractual agreement, and government regulations. a. true b. false 2.) Product costs: a. are always expensed in the same period in which they are incurred. b. are inventoriable costs. c. vary directly with changes in cost driver. d. are always charged to an asset account in the same period in which they are incurred. 3. Controllable costs are cost items which can be regulated depending on the level of management one is in. a. True b. False b. False

Kindly answer questions 1-3: 1.) Discretionary costs are costs that must be incurred because of past decision, contractual agreement, and government regulations. a. true b. false 2.) Product costs: a. are always expensed in the same period in which they are incurred. b. are inventoriable costs. c. vary directly with changes in cost driver. d. are always charged to an asset account in the same period in which they are incurred. 3. Controllable costs are cost items which can be regulated depending on the level of management one is in. a. True b. False b. False

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 2EA: For the following descriptions state whether the cost is controllable or uncontrollable by...

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3. Costs of a product that are regarded as an asset for financial reporting under GAAP are called inventoriable costs. O mixed costs. O direct costs. O overhead costs.
Which of the following is/are not true about Committed costs a. They are costs incurred to maintain a company's facilities. b. They are costs over which the management has little or no discretion. c. Depreciation, Insurance, Taxes etc are examples of committed costs. d. They are also known as Programmed costs.
For external reporting purposes, costs must be classified into only three categories. (2) Cost of goods manufactured represents the cost of direct materials, direct labor, and overhead incurred during the current accounting period. a. BOTH statements are FALSE b. BOTH statements are TRUE c. 1st statement FALSE d. 1st statement TRUE
18. Classifying a cost as either direct or indirect depends upon: whether the cost can be easily identified with the cost object the behavior of the cost in response to volume changes whether the cost is expensed in the period in which it is incurred whether an expenditure is avoidable or not in the future
1. For external reporting purposes, the amount of inventoriable costs must be: Your answer 2. For internal reporting purposes, the amount of period costs must be:2
Costs that are treated as assets until the product is sold are called O A. Conversion cost O B. Selling expenses O C. Period Cost O D. Product Costs
which one is correct please confirm? There are three categories of costs: fixed costs, variable costs and semi-variable costs. Which of the following is a semi-variable cost? a. depreciation b. raw materials c. labor costs d. management salaries
The distinction between indirect and direct costs depends on: Select one: a. whether a cost differs between alternatives. b. whether a cost is variable or fixed. c. whether a cost is a product or a period cost. d. whether a cost can be easily traced to the cost object under consideration. e. all of the above statements are correct.
1-The amount of money paid for the use of borrowed capital or from the money that has been loan. a. Interest b. Interest rate c. Principal 2-The costs that are repetitive and occur when an organization produces goods or services on a continuing basis. a. Sunk cost b. Recurring cost c. Direct cost 3-The costs that have occurred in the past and have no importance in the estimates of future costs and revenues related to alternative course of action. a. Sunk cost b. Recurring cost c. Direct cost 4- It is calculated using the principal only without considering the interest accrued in preceding period. a. Simple interest b. Compound interest c. Annuity 5- It is an expression of the increase in the cost of goods and services from one year to the next.…
Practice 2: a: Define standard costs. b: under what conditions should previously established standard costs be revised? c: explain why the determination of standard cost amounts should not be the sole responsibility of a company's cost accountant.
Explain why product costs are capitalized but period costs are expensed in the current accounting period.
Required: 1. For external reporting purposes, the amount of inventoriable costs must be? 2. For internal reporting purposes, the amount of period costs must be?