Which of the following is an example of a cost that varies in proportion to changes in the activity base? Depreciation on machinery    Packaging cost    Factory rent    Insurance cost

7. Which of the following is the best definition of a variable cost? A. A variable cost is one which is directly traceable to an activity of the business for which the cost will be used. B. A variable cost is one which is associated with goods or services purchased, or produced, for sale to customers. C. A variable cost is one which changes with changes in the level of activity, over a defined period of time. D. A variable cost is one which is spread over a number of activities of the business for which costs are to be determined.

What is life-cycle and/or full-cost accounting? IS THERE A DIFFERENCE?

Select and “X” in the column that corresponds to the cost classification for each of the following scenarios. Some items may fit in more than one column.

The cost of is not included in the cost of production a. Abnormal loss b. Direct costs c. Normal loss d. Scrap

Identify the following as fixed costs (F), variable costs (V), or mixed costs(M). insurance on factory building   advertising expense

Under variable costing, all fixed manufacturing costs are treated as a a. product cost included in the cost of goods manufactured. b. product cost included in the cost of ending inventory. c. period expense deducted from manufacturing margin. d. period expense deducted from contribution margin.

How is the cost of units normally lost reflected in the manufacturing cost for the period?

1. Property taxes on a manufacturing plant is an element of: a. Conversion cost b. Prime cost   c. Period cost d. Fixed cost   2. Factory supplies for manufacturing plant are generally a. Prime cost b. Fixed cost c. Period cost d. Variable cost   3. Wages paid to timekeeper in a factory is a a. Prime cost b. Direct Material c. Conversion cost d. Direct labor

The following costs have been identified in relation to the production of a product except :   Production Cost Design cost Direct cost End of life disposal cost