106434
Pregunta 1
Pregunta
Define direct materials
Respuesta
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Integral part of product that can be traced directly to it.
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Anything that is not an indirect material
Pregunta 2
Pregunta
Define direct labour
Respuesta
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Easily traced to individual units of product.
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Anything that does not include indirect labour
Pregunta 3
Pregunta
Define manufacturing costs
Respuesta
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Cannot be traced to individual product, includes indirect materials and indirect labour.
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Includes manufacturing costs
Pregunta 4
Pregunta
Define non-manufactuing costs
Respuesta
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Includes marketing and selling costs to receive the order and the delivery and also administrative costs
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Not manufacturing costs
Pregunta 5
Pregunta
Product costs
Respuesta
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They are expenses in the period in which the product is sold.
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cost of products
Pregunta 6
Pregunta
Period costs
Respuesta
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They are treated as expenses in the period they are incurred.
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costs of the period
Pregunta 7
Pregunta
Define cost behaviour
Respuesta
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How cost will react to changes in level of business activity
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variable and fixed costs
Pregunta 8
Pregunta
Cost behaviour of variable costs
Respuesta
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Varies in direct proportion to changes in level of activity
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variable
Pregunta 9
Pregunta
Cost behaviour of fixed costs
Respuesta
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Costs remain constant regardless of changes in level of activity
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fixed
Pregunta 10
Pregunta
What are direct costs?
Respuesta
-
Costs that can be easily traced to unit of product
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directly
Pregunta 11
Pregunta
What are indirect costs?
Respuesta
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Costs that cannot be traced to product, common costs have a number of objective so cannot be traced to an individual.
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not direct costs
Pregunta 12
Pregunta
What is differential costs/revenue?
Respuesta
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Difference between cost/revenue between alternatives. Increase in amount is incremental, decrease in amount is decremental.
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difference between cost products
Pregunta 13
Pregunta
What is marginal revenue or marginal cost?
Respuesta
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Amount attained by one more unit of product
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marginal amount
Pregunta 14
Pregunta
What are opportunity costs?
Respuesta
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Potential benefit that is given up when one alternative is selected over another
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costs made from opportunities
Pregunta 15
Pregunta
What are sunk costs?
Respuesta
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Cannot be changed by any decision as they are not seen as differential costs.
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costs that have decreased
Pregunta 16
Pregunta
Contribution Margin
Respuesta
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Is the amount remaining from sales revenue- variable expenses
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The margin that is contributed
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