Match the Following Terms with the Appropriate Definition

question 89

Short Answer

Match the following terms with the appropriate definition.
________ (1) Direct materials
________ (2) Indirect costs
________ (3) Product costs
________ (4) Prime costs
(5) Fixed costs
(6) Direct labor
(7) Period costs
(8) Conversion costs
(9) Factory overhead
(10) Variable costs
(a) Costs that flow directly to the current income statement as expenses.
(b) Costs that change in proportion to changes in volume of activity.
(c) The efforts of employees who physically convert materials to finished products.
(d) Manufacturing expenditures that cannot be separately or readily traced to finished goods.
(e) Expenditures necessary and integral to finished products.
(f) Expenditures incurred in the process of converting raw materials to finished products; include direct labor and factory overhead.
(g) Tangible components of a finished product separately and readily traced through the manufacturing process.
(h) Expenditures directly associated with the manufacture of finished products; include direct materials and direct labor.
(i) Costs that do not change in total with changes in the volume of activity.
(j) Costs that are incurred for the benefit of more than one cost object.

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Definitions:

Firm's Profits

Total earnings a company retains after subtracting all costs, expenses, taxes, and charges from its total revenue.

Customer Needs

The specific expectations and preferences of consumers that influence their purchasing behavior and brand loyalty.

Quality of Life

A measure of an individual's well-being and happiness, often considering factors like health, comfort, leisure, and economic circumstances.

Facility Locations

The strategic placement of business operations, warehouses, and production sites to optimize efficiency and costs.