Question)
Which of the following would be considered an external cost?
a) Rent for factory premises
b) The cost of direct materials
c) Direct labour cost
d) Community degradation from an organisation’s operations
Answer
Definition of external cost for better understanding of the concept
An external cost occurs when producing or consuming a good or service imposes a cost (negative effect) upon a third party.
Therefore community degradation from an organisation's operation is considered as external cost.
Question) Which of the following would be considered an external cost? a) Rent for factory premises...
which of the following is considered a variable manufacturing overhead cost? Factory rent Direct labor c Factory utilities d. Direct materials Which of the following costs is considered a direct cost? Depreciation on machinery b. Glue used in the manufacturing process c. The superintendent's salary d. Factory insurance c. Assembly-line labor costs The cost of rent for a manufacturing plant is generally considered to be a: Fixed cost Overhead cost No Yes No No No Yes Yes Yes When production...
19. Which of the following would be considered a product cost for external financial reporting purposes? A. Cost of guided public tours through the company's facilities. B. Cost of a warehouse used to store finished goods C. Cost of travel necessary to sell the manufactured product. D. Cost of sand spread on the factory floor to absorb oil from manufacturing machines
Which of the following would be considered a nonmanufacturing (period) cost? a. The cost of an advertising campaign to launch a new product. b. The hourly wages of the workers who make the product. c. The cost of materials used to make the product. d. The utilities cost for the factory where the product is made. .
Which of the following would be considered a period cost for a manufacturing company? O A. indirect materials O B. direct labor O C. sales salaries OD. factory utilities Cick to select your answer MacBoo esc FI DDD F3 ODD 54 ta $ %
1. Which of the following is an example of a possible cost object? a. a product b. a customer c. a department d. All of these could be possible cost objects. 2. Which of the following is a product cost? a. advertising expenditures b. insurance on the office buildings c. depreciation of the salesmen's cars d. depreciation of the production facilities 3. The wages of a production equipment operator would be classified as a. direct materials. b. direct labour c....
34. Which of the following is part of factory overhead cost? a. sales commissions b. depreciation of factory equipment and machines c. depreciation of sales person's vehicle d. direct materials used ANSWER: b 35. Which of the following manufacturing costs is an indirect cost of producing a product? a. oil lubricants used for factory machinery b. commissions for sales personnel c. hourly wages of an assembly worker d. memory chips for a microcomputer manufacturer 36. All of the following could...
Property taxes incurred on the factory would be considered a(n): A. Manufacturing overhead cost B. Direct material cost C. Period cost D. Direct cost Denim used to manufacture jeans would be considered a(n): A. Indirect material cost B. Direct material cost C. Manufacturing overhead cost D. Period cost Assembly line worker's wages would be considered a(n): A. Indirect cost B. Direct labor cost C. Manufacturing overhead cost D. Period cost Depreciation on printers at sales office would be considered a(n):...
The following costs relate to one month's activity in Martin Company: Indirect materials $300 Rent on factory building $500 Maintenance of equipment $50 Direct material used $1,200 Utilities on factory $250 Direct labour $1,500 Selling expense $500 Administrative expense $300 Work in process inventory, beginning $600 Work in process inventory, ending $800 Finished goods inventory, beginning $500 Finished goods inventory, ending $250 Required: a) Prepare a schedule of cost of goods manufactured in good form. b) Determine the cost of goods sold....
Which of the following would be used to determine if a cost is considered inventoriable (for external reporting purposes) or a period cost? A. Where the cost was incurred. B. When the cost was incurred. C. Why the cost was incurred. D. How the cost was incurred.
Which of the following would be considered a discretionary fixed cost? Multiple Choice Rent on the building. Insurance on the building. Depreciation on the building. Maintenance on the building.