Conversion costs include all of the following excepta. manufacturing overhead costsb. indirect labour costsC. direct labour costsO d. direct materials costsClear my choice

The costs incurred for the production are classified as direct and indirect costs. The costs are…

Answered: a. manufacturing overhead costs O b.…

a. manufacturing overhead costs O b. indirect labour costs O C. direct labour costs O d. direct materials costs Clear my choice

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Conversion costs include all of the following except
a. manufacturing overhead costs
b. indirect labour costs
C. direct labour costs
O d. direct materials costs
Clear my choice

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The cost of a manufactured product (product cost) generally consists of which of the following? Group of answer choices selling and administrative expenses direct material, direct labor, applied factory overhead direct labor and applied factory overhead direct material and direct labor
1. What do you mean by process costing? Who uses process costing give the example of company with the product?
1.The overhead absorption rate used to allocate manufacturing overhead is calculated by: Select one: a.dividing the total estimated manufacturing overhead costs by the total estimated quantity of the allocation base b.dividing the total estimated manufacturing overhead by the total actual quantity of the cost driver c.dividing the total actual manufacturing overhead costs by the total estimated quantity of the cost driver d.dividing the total estimated quantity of the cost driver by the total estimated manufacturing overhead costs
Which one is a controllable cost? Select one: O a. Office salary Ob. Rent Factory Oc Office Rent O d. Cost of Raw material
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Which best describes the flow of overhead costs in an activity-based costing system? Group of answer choices Overhead costs –> direct labor cost or hours –> products Overhead costs –> products Overhead costs –> activity cost pools –> cost drivers –> products Overhead costs –> machine hours –> products
Process cost systems use job cost sheets. Select one: O a. FALSE O b. TRUE
Which one is a controllable cost? Select one: a. Office salary O b. Cost of Raw material O c. Rent Factory O d. Office Rent
Which of the following statement(s) islare correct? I. Manufacturing overhead includes all manufacturing costs except direct labor and direct materials II. Prime costs consist of direct material and direct labor. Conversion cost is essentially direct labor O A. I only O B. Il only O C. Both I & II D. Neither I nor II
Which costing method is likely to provide the most accurate product cost? a. Volume-based costing using direct labor hours to allocate overhead b. Volume-based costing using a plantwide overhead rate c. Normal costing using a plantwide overhead rate d. Activity-based costing
A direct material standard cost is: Group of answer choices The cost of direct materials that should be incurred to produce one unit of output or product. The amount of direct materials that should be used to produce one unit of output or product. The cost of all materials and supplies used to produce one unit of output or product. The price that should be spent to purchase each unit of direct material for production.
The three major cost components of manufacturing a product are,