AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Learning Objective: 02-02 Distinguish between product cost and period costs and give examples of each. Level: 2 Medium 6. In external financial reports, factory utilities costs may be included in an asset account on the balance sheet at the end of the period. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Learning Objective: 02-02 Distinguish between product cost and period costs and give examples of each. Level: 3 Hard 7. Advertising costs are considered product costs for external financial reports because they are incurred in order to promote specific products. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Learning Objective: 02-02 Distinguish between product cost and period costs and give examples of each. Level: 2 Medium 8. Selling and administrative expenses are product costs under generally accepted accounting principles. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Learning Objective: 02-02 Distinguish between product cost and period costs and give examples of each. Level: 1 Easy 9. A variable cost is a cost cost per unit varies as the activity level rises and falls. FALSE Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Learning Objective: 02-03 Understand cost behavior patterns including variable costs; fixed costs; and mixed costs. Level: 1 Easy 10. When the level of activity increases, total variable cost will increase. TRUE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Learning Objective: 02-02 Distinguish between product cost and period costs and give examples of each. Level: 2 Medium 6. In external financial reports, factory utilities costs may be included in an asset account on the balance sheet at the end of the period. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Learning Objective: 02-02 Distinguish between product cost and period costs and give examples of each. Level: 3 Hard 7. Advertising costs are considered product costs for external financial reports because they are incurred in order to promote specific products. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Understand Learning Objective: 02-02 Distinguish between product cost and period costs and give examples of each. Level: 2 Medium 8. Selling and administrative expenses are product costs under generally accepted accounting principles. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Learning Objective: 02-02 Distinguish between product cost and period costs and give examples of each. Level: 1 Easy 9. A variable cost is a cost cost per unit varies as the activity level rises and falls. FALSE Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Remember Learning Objective: 02-03 Understand cost behavior patterns including variable costs; fixed costs; and mixed costs. Level: 1 Easy 10. When the level of activity increases, total variable cost will increase. TRUE