Period Costs Notes Questions with Answers PDF Download – Test 207

In the income statement of merchandising costs, the period cost includes all costs which are not related to

1. cost of resale goods
2. cost of manufacturing goods
3. timed resale of goods
4. cost of purchased goods

If the static budget variance is $38000 and the static budget amount is $12000, then an actual result would be

1. $36,000
2. $60,000
3. $26,000
4. $50,000

If the net realizable value is $20000 and the separable costs are $18000, then the final sales will be

1. $20,000
2. $18,000
3. $2,000
4. $38,000

The process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as

1. revenue allocation
2. revenue object
3. revenue increment
4. reciprocal revenue

Considering dual rate method, if employees work for 8500 budgeted hours at $120 per hour, and work for 9500 actual hours at $110 per hour, then the total cost would be

1. $2,078,000
2. $3,078,000
3. $2,065,000
4. $3,065,000