The least accurate but easiest to apply method of cost assignment is the method. allocation ANSWER: means the consumer cannot see, hear, feel, or taste a service before it is bought. Intangibility ANSWER: are generally materials necessary for production that do not become part of the finished product or are not used to provide a service. Supplies ANSWER: Costs necessary to market and distribute a product or service are often referred to as order- __________ and order- __________ costs. getting; filling ANSWER: In preparing an income statement, and costs are separated. production; nonproduction ANSWER: Gross margin is the difference between and the cost of goods or services sold. sales revenues ANSWER: income is the difference between gross margin and selling and administrative expenses. Operating ANSWER: Cost management systems are made up of two subsystems: the accounting system and the control system. cost; operational ANSWER: Generally, more managerial objectives can be met with an system than with a system. traditional ANSWER: In deciding whether to implement a(n) cost management system, managers must evaluate the trade- off between costs of measurement and cost of errors. activity-based ANSWER: The set of interrelated parts that performs one or more processes to accomplish specific objectives is called a(n): cost objective system activity
The least accurate but easiest to apply method of cost assignment is the method. ANSWER: allocation means the consumer cannot see, hear, feel, or taste a service before it is bought. ANSWER: Intangibility are generally materials necessary for production that do not become part of the finished product or are not used to provide a service. ANSWER: Supplies Costs necessary to market and distribute a product or service are often referred to as order- __________ and order- __________ costs. ANSWER: getting; filling In preparing an income statement, and costs are separated. ANSWER: production; nonproduction Gross margin is the difference between and the cost of goods or services sold. ANSWER: sales revenues income is the difference between gross margin and selling and administrative expenses. ANSWER: Operating Cost management systems are made up of two subsystems: the accounting system and the control system. ANSWER: cost; operational Generally, more managerial objectives can be met with an system than with a system. ANSWER: traditional In deciding whether to implement a(n) cost management system, managers must evaluate the trade- off between costs of measurement and cost of errors. ANSWER: activity-based The set of interrelated parts that performs one or more processes to accomplish specific objectives is called a(n): cost objective system activity
Test-Bank-for-Cornerstones-of-Cost-Management-3rd-Edition-by-Hansen.docx