Problem 1 Cost Classifications a.) Variable Cost b.) Fixed Cost
c.) Work In Process Inventory d.) Finished Goods
Inventory e.) Cost of Goods Sold f.) Cost of
Goods Manufactued g.) Period Costs h.) Sunk Cost
i.) Product Cost j.)
Indirect cost 1.) Cannot be connect to a cost object 2.) Portion of
total cost that does not change with the quantity of output 3.)
Portion of total cost that changes with the quantity of output 4.)
Non-product expenditures for managing the firm and selling the
product 5.) Contains all cost put into the manufacturing of a
product that have been started but not completed at the financial
statement date 6.) The cost of Goods ready to be sold 7.) Cost of
goods finished and transferred out of the WIP Inventory Account
during a specific period 8.) Cost that have been incurred in the
past and have do not impact future costs 9.) Cost of the product
transferred to the income statement when inventory is sold
10.) The costs necessary to complete the
product: direct materials, direct labor and overheads
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