Question

27. Costs that can be traced to a specific cost object are A. opportunity costs. B. direct costs. C. indirect costs. D. irrelevant costs. 28. To earn summer money, Joe could mow lawns in his neighborhood, or he could work at a local grocery store. Which of the following is an opportunity cost of mowing lawns? A. Cash paid for gas to run the lawnmower. B. The time spent mowing the lawns. C. The wages he could have earned working at the grocery store. D. Depreciation on the lawnmower. 29. A fixed cost A. goes up in total when activity increases. B. goes up per unit when activity increases. C. goes down in total when activity increases. D. goes down per unit when activity increases. 30. Which of the following is not a manufacturing cost? A. Raw materials cost. B. Marketing cost. C. Direct labor cost. D. Manufacturing overhead cost.

Answer 1

1

Costs that can be traced to a particular cost object are called direct costs.

Option B direct costs is correct

2

An opportunity cost is the benefit foregone for choosing a course of action.

The wages he could have earned working at the grocery store is an opportunity cost.

Option C is correct

3

A fixed cost goes down per unit when activity increases.

A fixed cost remains constant in total and decreases per unit when activity increases.

Option D is correct

4

Marketing cost is not a manufacturing cost.

Marketing cost is a period cost.

Raw materials cost,Direct labor cost and Manufacturing overhead cost are manufacturing costs.

Option B is correct