Acct 526 Midterm |41 Questions| With Correct Answers.

variable costs {Ans: Costs that vary in total directly and proportionately with changes in the activity level}indirect labor {Ans: Work of factory employees that has no physical association with the finished product, or it is impractical to trace the costs to the goods produced.}period costs {Ans: identify: advertising}a. $100,000 {Ans: CMA, Inc. produces a product that has a variable cost of $2.50 per unit. The company's fixed costs are $30,000. The product is sold for $5.00 per unit and the company desires to earn a target profit of $20,000. What amount of sales will be necessary to earn the desired profit? a. $100,000 b. $40,000 c. $60,000 d. $20,000}c. the product is sold. {Ans: Product costs are expenses on the income statement when: a. the product completes the manufacturing process. b. the order is received for the product. c. the product is sold. d. raw materials for the product are purchased.}b. wages of assembly line personnel {Ans: Which of the following is an example of direct labor cost in a factory? a. wages of factory security guard b. wages of assembly line personnel c. salary of vice president of production d. salary of production