I would like to clarified my mind with some accounting term and technical word, writting my problem in this way allow me to understand much better these concepts.
1) a property taxes is a conversion cost or period cost?
2)the difference between an estimat selling price for a product and its total unit cost represents: contribution margin per unit, gross margin, variable per unit,operating profit per unit, or net income per unit?
3)Which of the following best distinguishes an opportunity cost from an outlay cost?
A. Opportunity costs are recorded, whereas outlay costs are not.
B. Outlay costs are speculative in nature, whereas opportunity costs are easily traceable to products.
C. Opportunity costs have very little utility in practical applications, whereas outlay costs are always relevant.
D. Opportunity costs are sacrifices from foregone alternative uses of resources, whereas outlay costs are cash outflows.
4) The difference between variable costs and fixed costs is (CMA adapted)
A. Unit variable costs fluctuate and unit fixed costs remain constant.
B. Unit variable costs are fixed over the relevant range and unit fixed costs are variable.
C. Total variable costs are constant over the relevant range, while fixed costs change in the long-term.
D. Total variable costs are variable over the relevant range but fixed in the long-term, while fixed costs never change.
E. Unit variable costs change in varying increments, while unit fixed costs change in equal increments
5)is it true or false that Costs and expenses are either variable or fixed
6) it true or false that Accounting systems typically record opportunity costs as assets and treat them as intangible items on the financial statements.
7) it is true or false that An increase in an organization’s fixed costs will result in a lower margin of safety
8)is it true or false that Only direct costs can be classified as product costs; indirect costs are classified as period costs
9) is it true or false that Accounting systems typically record opportunity costs as assets and treat them as intangible items on the financial statements.
1. Property taxes relating to factory would be a conversion cost since it would be a part of overhead. Property taxes relating to selling and administrative offices would be a period cost.
2. It is gross margin. Gross Margin = Selling Price – …
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