The Ultimate Cost Accounting Exam Guide: 50 Questions & Answers Wit

The Ultimate Cost Accounting Exam Guide: 50 Questions & Answers with Definitions, Examples, and Key Concepts Cost Accounting Exam Direct Costs, Indirect Costs, and Everything In Between 1). Direct costs Ans: >>>">Costs unique and exclusive to a department. GENERATE REVENUE. Ex: costs associated with providing clinical testing such as staff and supplies. 2). Indirect costs (overheads) Ans: >>>">Costs associated with shared resources used by the entire organization. Ex: rent, utilities, administrative salaries, building maintenance. 3). Fixed costs Ans: >>>">Costs that remain constant in total regardless of changes in activity level within a relevant range. Ex: annual equipment lease, property taxes, insurance premiums. 4). Variable costsAns: >>>">Costs that change in direct proportion to changes in activity level or production volume. Ex: raw materials, direct labor hours, sales commissions. 5). Mixed costs (semi-variable) Ans: >>>">Costs containing both fixed and variable components. Ex: utility bills with base service charge (fixed) + usage charges (variable); phone plans with monthly fee + per-minute charges. 6). Product costs Ans: >>>">Costs directly associated with manufacturing a product. INCLUDED IN INVENTORY VALUATION until product is sold. Ex: direct materials, direct labor, manufacturing overhead. 7). Period costs Ans: >>>">Costs NOT directly tied to production. EXPENSED IN THE PERIOD INCURRED.