Managerial Accounting Concepts and PrinciplesWarren / Reeve / DuchacExercise 16-5 solution |
From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:
a. Payments of cash or the commitment to pay cash in the future for the purpose of generating revenue are - COSTS
b. The implementation of automatic, robotic factory equipment normally DECREASES the direct labor component of product costs.
c. Feedback is often used to IMPROVE operations.
d. A product, sales territory, department, or activity to which costs are traced is called a COST OBJECT.
e. The balance sheet of a manufacturer would include an account for WORK IN PROCESS INVENTORY.
f. Factory overhead costs combined with direct labor costs are called CONVERSION costs.
g. Advertising costs are usually viewed as PERIOD costs.
