For external reporting, GAAP requires that costs be classified as either product or period costs. 32. Overtime premium consists of the wages paid to all workers (for both direct labor and indirect labor) in excess of their straight-time wage rates. True Answer: 33. A product cost that is useful for one decision may not be useful information for another decision. True Answer: 34. For external reporting purposes, indirect manufacturing costs must be allocated to individual units. True Answer: 35. The role of the cost accountant is to tailor the cost calculation to fit the current decision situation. True Answer: 36. Cost accounting and cost management include calculating various costs, obtaining financial and nonfinancial information, and analyzing relevant information for True Answer: MULTIPLE CHOICE 37. Cost objects include a. products. b. customers. c. departments. d. all of the above. d Answer: 38. Actual costs are a. the costs incurred. b. budgeted c. estimated costs. d. forecasted costs. a Answer: 39. The general term used to identify both the tracing and the allocation of accumulated costs to a cost object is a. cost accumulation.
For external reporting, GAAP requires that costs be classified as either product or period costs. 32. Overtime premium consists of the wages paid to all workers (for both direct labor and indirect labor) in excess of their straight-time wage rates. Answer: True 33. A product cost that is useful for one decision may not be useful information for another decision. Answer: True 34. For external reporting purposes, indirect manufacturing costs must be allocated to individual units. Answer: True 35. The role of the cost accountant is to tailor the cost calculation to fit the current decision situation. Answer: True 36. Cost accounting and cost management include calculating various costs, obtaining financial and nonfinancial information, and analyzing relevant information for Answer: True MULTIPLE CHOICE 37. Cost objects include a. products. b. customers. c. departments. d. all of the above. Answer: d 38. Actual costs are a. the costs incurred. b. budgeted c. estimated costs. d. forecasted costs. Answer: a 39. The general term used to identify both the tracing and the allocation of accumulated costs to a cost object is a. cost accumulation.
Ch02%20Cost%20Terms%20and%20Purposes%20Test.docx