Matching (2 pts each)- choose the BEST answer from the following a. Direct Cost
ID: 2537162 • Letter: M
Question
Matching (2 pts each)- choose the BEST answer from the following a. Direct Cost b. Indirect Cost c. Variable Cost e. Inventoriable Cost f. Period Cost g. Prime Cost h. Conversion Cost i. Absorption Costing j Variable Costing k. Margin of Safety I. Target Operating Income d. Fixed Cost 1.- 2, 3. _ is required by GAAP or IFRS. is the cost incurred to turn direct materials into finished goods. analyzes current or budgeted sales relative to breakeven sales. _ cannot be conveniently and economically traced to a cost object. Multiple Choice (2 pts each) - choose the BEST answer: S. Selling, general & administrative costs are always classified as: a. Fixed costs b. Variable costs c. Period costs d. Mixed costs e. Indirect costs Which of the following tells us how sensitive net operating income is to a given percentage change in sales? a. Contribution Margin Ratio b. Degree of Operating Leverage c. Sales Mix d. Cost-Volume-Profit AnalysisExplanation / Answer
Answer A
1. Inventoriable Cost is required by GAAP or IFRS.
2. Conversion Cost is the cost incurred to turn direct Material into finished goods.
3. Margin of Safety analyzes current or budgeted sale relative to break even sales.
4 Indirect Cost cannot be conveniently or economicaly traced to a cost object
Answer B:
Selling General & Administrative Expenses are always classified as Variable Cost
Answer C:
Degree of Operating Leverage tell us how senstive net operative income to a given percen change in sales.
Note: So many questions are there i have reponded to 1st 3 questions.