Module+2000+XII+Tests

XII. Module 2000 Tests

** Test ** True or False **Cost Object ** - anything for which a measurement of costs is desired.

**Fixed Costs ** - all direct manufacturing costs

**Direct Manufacturing Labor Costs ** - all manufacturing costs that are related to the cost object (work in process and then finished goods) but that cannot be traced to that cost object in an economically feasible way

**Cost Driver ** -  a variable, such as the level of activity or volume that casually affects costs over a given time span

**Cost Allocation ** - assignment of indirect costs to a particular cost object

Answers

1. TRUE

2. FALSE

3. FALSE

4. TRUE

5. TRUE

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