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Chapter 2

Fill in the Blanks

Fill in the Blanks

This activity contains 13 questions.

	A cost is a resource ______ to achieve a specific objective.   sacrificed donated earned contributed

	A(n) ______ is anything for which a measurement of costs is desired.   cost assignment cost object actual cost cost accumulation

	Cost allocation assigns ______ costs to the cost object, while cost tracing assigns the ______ costs.   direct, direct indirect, indirect indirect, direct direct, indirect

	A ______ cost changes ______ as activity level changes.   fixed, in total fixed, per unit variable, inversely variable, per unit

	A cost that is traceable to a cost object, but that remains the same in total no matter what level of activity the cost object has is a ______ and ______ cost.   direct, variable indirect, fixed direct, fixed indirect, variable

	A variable cost is one that is constant ______, and varies ______ as activity level changes.   per unit, per unit in total, in total in total, per unit per unit, in total

	A ______ is an example of a service level company.   computer builder grocery store food-processing company dentist

	The ______ inventory account stores information about goods that are completed, but not yet sold.   Direct Material Supplies Work-in-process Finished Goods

	______ would be considered a product cost, while ______ would be considered a period cost.   Advertising flyers, sales commissions Shipping (outgoing), direct labor Direct labor, plant supervisor salary Plant depreciation, sales commissions

	______ would be an inventoriable cost for a merchandiser, while ______ would be a period cost for a merchandiser.   Salary of the store supervisor, freight-in Salary of the store supervisor, freight-out Freight-in, salary of the store supervisor Freight-out, salary of the store supervisor

	Oil for the machines used to manufacture furniture would most likely be considered a(n) ______ cost. With respect to changes in the amount of furniture produced it would be considered a ______ cost.   inventoriable, fixed period, variable inventoriable, variable period, fixed

	At a service sector company, the president's salary would normally be considered a(n) ______ cost. With respect to changes in the activity level at the service company, it would be considered ______.   period, variable inventoriable, variable inventoriable, fixed period, fixed

	When determining the conversion costs for a product, ______ costs would be included, but ______ costs would not be included.   direct labor, direct material indirect manufacturing, direct labor direct material, indirect manufacturing direct material, direct labor

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