Basic Concepts
Place the number of the appropriate definition in the blank next to each concept.
|
Concept |
Definition |
|
________Period cost |
1. Cost that varies with the volume of activity. |
|
________Indirect cost |
2. Sacrifice of resources. |
|
________Fixed cost |
3. Cost charged against revenue in a particular accounting period. |
|
________Opportunity cost |
4. Cost that is part of inventory. |
|
________Outlay cost |
5. Cost that can more easily be attributed to time intervals. |
|
________Direct cost |
6. Past, present, or near future cash flow. |
|
________Expense |
7. Lost benefit from the best forgone alternative. |
|
________Cost |
8. Cost used to compute inventory value according to GAAP. |
|
________Variable cost |
9. Cost that cannot be directly related to a cost object. |
|
________Full absorption cost |
10. Cost that can be directly related to a cost object. |
|
________Product cost |
11. Cost that does not vary with the volume of activity. |