Question

3. Select the suitable concept to match the appropriate definition.

1.Sacrifice of resources.

2.Cost that cannot be directly related to a cost object.

3.Cost that varies with the volume of activity.

4.Cost used to compute inventory value according to GAAP.

5.Cost charged against revenue in a particular accounting period.

6.Cost that can be directly related to a cost object.

7.Past, present, or near-future cash flow.

8.Lost benefit from the best forgone alternative.

9.Cost that can more easily be attributed to time intervals.

10.Cost that does not vary with the volume of activity.

11.Cost that is part of inventory.

Options:
Cost
Direct Cost
Expense
Fixed Cost
Full absorption Cost
Indirect Cost
Opportunity Cost
Outlay Cost
Period Cost
Product Cost
Variable Cost

Answer 1

1. Sacrifice of resources - Cost

2. Cost that cannot be directly related to a cost object - Indirect cost

3. Cost that varies with the volume of the activity - Variable cost

4. Cost used to compute inventory value according to GAAP - Full absorption cost

5. Cost charged against revenue in a particular accounting period - Expense

6. Cost that can be directly related to a cost object - Direct cost

7. Past, present, or a near future cash flow - Outlay cost

8. Lost benefit from the best forgone alternative - Opportunity cost

9. Cost that can more easily be attributed to time intervals - Period cost

10. Cost that does not vary with the volume of activity - Fixed cost

11. Cost that is part of inventory - Product cost.