VOCABULARY PRACTICE

Chapter 2

1. The manufacturing costs associated with the goods

that were finished

2. A cost that remains constant, in total, regardless of

changes in the level activity within a relevant range.

3. Direct labour cost plus manufacturing overhead cost

4. The potential benefit given up when one alternative is

selected over another.

5. Direct materials cost plus direct labour cost.

6. A cost that can be easily and conveniently traced to a

particular cost object.

7. Unit of product that is only partially complete and will

require further work before they are ready for sale to a
customer.

8. Cost that can be carried forward to inventory. Synonym

for product costs .

9. Small items of material, such as glue and nails. These

items may become an integral part of a finished product but
are traceable to the product only at great cost or
inconvenience.

_____________ 10. All costs involved in acquiring or making a product. In

the case of manufactured goods, these costs consist
of direct materials, direct labour, and manufacturing
overhead.