Which of the following is included in prime costs?
A) Overhead costs
B) Indirect materials costs
C) Selling and administrative costs
D) Direct labor costs
D
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On a multi-step income statement, which of the following is added to operating income to arrive at net income?
A) sales revenue B) interest expense C) sales discounts forfeited D) operating expenses
Which of the following costs should be used when choosing between two decision alternatives? RelevantCostSunkCostOpportunity CostA.NoYesYesB.YesYesNoC.YesYesYesD.YesNoYesE.NoNoYes
A. Choice A B. Choice B C. Choice C D. Choice D E. Choice E
Bonds with a face amount $1,000,000, are sold at 98. The entry to record the issuance is
A) Cash 1,000,000 Premium on Bonds Payable 20,000Bonds Payable 980,000 B) Cash 980,000Premium on Bonds Payable 20,000Bonds Payable 1,000,000 C) Cash 980,000Discount on Bonds Payable 20,000Bonds Payable 1,000,000 D) Cash 980,000Bonds Payable 980,000
Which of the following statements is false regarding variable costing?
A) Variable overhead is treated as a product cost. B) Variable costing is required for external financial statements prepared in accordance with generally accepted accounting principles (GAAP). C) Fixed manufacturing overhead is treated as a period cost. D) Period costs are expensed as they are incurred.