A number of terms are listed below:
Prime costs
Fixed cost
Inventoriable costs
Period costs
Indirect
Conversion costs
Variable cost
Relevant cost
Required
Select the terms from the above list to complete the following sentences.
1. _________ are incurred during the process of transforming direct materials into finished goods ready for sale.
2. A _________ remains unchanged for a given time period, despite wide changes in the related level of total activity or volume of output.
3. _________ are all costs of a product that are considered as assets on the statement of financial position when they are incurred.
4. _________ are all direct manufacturing costs.
5. _________ are all costs in the statement of profit and loss other than cost of goods sold.
6. A _________ changes in proportion to changes in the related level of total activity or volume.
7. _________ costs of a cost object are related to the particular cost object but cannot be traced to it in an economically feasible (cost-effective) way.
8. _________ information is cost information that will change a decision. It is needed to identify and remedy different cost-management problems.