37) R&D costs are treated as period costs because ________.
A) these costs may increase revenues in the current period
B) these costs may increase revenues in the future period
C) these costs may decrease revenues in the current period
D) these costs are expensed when the goods are sold
38) For an automobile manufacturer, period costs include the cost of ________.
A) the dashboard
B) labor used for assembly
C) advertising
D) assembly-line equipment
39) Period costs ________.
A) include only fixed costs
B) seldom influence financial success or failure
C) include the cost of selling, delivering, and after-sales support for customers
D) should be treated as an indirect cost rather than as a direct manufacturing cost
40) Period costs ________.
A) are treated as expenses in the period they are incurred
B) are directly traceable to products
C) are treated as expenses in the following period they are incurred
D) are also referred to as manufacturing overhead costs
41) Inventoriable costs are costs of a product that are ________.
A) costs of a product that are considered assets in a company’s balance sheet when the costs are incurred and that are expensed as cost of goods sold only when the product is sold
B) considered liabilities in a company’s balance sheet when the costs are incurred and that are expensed only when the product is sold
C) considered as assets in a company’s income statement when the costs are capitalized and that are expensed as cost of goods sold only when the product is sold
D) considered as liabilities in a company’s income statement when the costs are capitalized and that are expensed only when the product is sold
42) Costs expensed on the income statement in the accounting period incurred are called ________.
A) direct costs
B) indirect costs
C) period costs
D) inventoriable costs
43) In the cost classification system used by manufacturing firms, assembly workers’ wages would be included in ________.
A) irrelevant cost
B) direct manufacturing costs
C) indirect manufacturing costs
D) period cost
44) Total manufacturing costs is comprised of ________.
A) direct materials costs and period costs
B) direct materials costs, direct manufacturing labor costs, and manufacturing overhead costs
C) indirect materials costs, indirect manufacturing labor costs, and manufacturing overhead costs
D) prime costs and period costs
Answer the following questions using the information below:
Zephyr Apparels is a clothing retailer. Unit costs associated with one of its products, Product DCT121, are as follows:
Direct materials$ 70
Direct manufacturing labor20
Variable manufacturing overhead15
Fixed manufacturing overhead32
Sales commissions (2% of sales)5
Administrative salaries16
Total$158
45) What are the inventoriable costs per unit associated with Product DCT121?
A) $137
B) $140
C) $143
D) $88
46) What are the period costs per unit associated with Product DCT121?
A) $4
B) $16
C) $21
D) $52
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more