Cost Management Paper 1

1

The terms direct cost and indirect cost are commonly used in accounting. A particular cost might be considered a direct cost of a manufacturing department but an indirect cost of the product produced in the manufacturing department. Classifying a cost as either direct or indirect depends upon






2

Which one of the following best describes direct labor?






3

Which one of the following best describes direct labor?






4

Inventoriable costs






5

In cost terminology, conversion costs consist of






6

Conversion costs do not include






7

Conversion cost pricing






8

The term “prime costs” refers to






9

Costs are allocated to cost objects in many ways and for many reasons. Which one of the following is a purpose of cost allocation?






10

Cost drivers are






Result

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