What is a cost incurred as part of the production process?A. A period costB. An opportunity costC. A sunk costD. A product cost

A product cost refers to the cost that is directly incurred to produce a product. These are the…

Answered: What is a cost incurred as part of the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 6Q: Explain the difference between a period cost and a product cost.

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Similar questions

Why are product costs assigned to the product and period costs immediately expensed?
What are the basic elements of production cost?
In the cost equation Y=a+bx, Y represents which of the following? A. fixed costs B. variable costs C. total costs D. units of production
Describe the product life cycle. How do unit-level costs behave in relation to the product life cycle? Batch-level costs? Product-level costs? Facility-level costs?
Why are labor and manufacturing overhead grouped together as conversion costs?
Accumulating costs means that a. costs must be summed and entered on the income statement. b. each cost must be linked to some cost object. c. costs must be measured and tracked. d. costs must be allocated to units of production. e. costs have expired and must be transferred from the balance sheet to the income statement.
Which of the following is a conversion cost? A. raw materials B. direct labor C. sales commissions D. direct material used
Which of the following are prime costs? A. indirect materials, indirect labor, and direct labor B. direct labor, indirect materials, and indirect labor C. direct labor and indirect labor D. direct labor and direct materials
What is the primary difference between the two cost accounting systems regarding the accumulation of costs and the calculation of unit costs?
The ability to assign a cost directly to a cost object by means of a causal relationship is a. allocation b. traceability c. separability d. value chain process
What is a direct cost? An indirect cost? Can the same cost be direct for one purpose and indirect for another? Give an example.
Which of the following is not considered a product cost? A. direct materials B. direct labor C. indirect materials D. selling expense

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What is a cost incurred as part of the production process? A. A period cost B. An opportunity cost C. A sunk cost D. A product cost