B3 Flashcards
1
Q
what are conversion costs?
A
direct labor, overhead
2
Q
what do conversion costs not include?
A
direct materials
3
Q
what do inventoriable costs include?
A
DL DM FOH
4
Q
What are prime costs?
A
DM + DL
5
Q
conversion costs
A
labor and overhead
6
Q
what is indirect labor part of?
A
factory overhead
7
Q
cost driver
A
cause and effect, it is what causes the tota; cost to rise
8
Q
purpose of cost allocation
A
measures income and assets for financial reporting
9
Q
cost of goods manufacutred
A
COGS
+ending finished goods
-beg finished goods
=COGM
10
Q
engineereed cost
A
bears an observable and known relationship to a quantifiable cost
11
Q
process costing
A
costs accumulated by department
