| Question No. | Correct Answer | Topic Verified | | :--- | :--- | :--- | | 1 | C | Product vs. Period Cost | | 2 | A | Prime Cost Formula (DM + DL) | | 3 | B | Conversion Cost Formula (DL + MOH) | | 4 | D | Variable Cost per Unit (Remains constant) | | 5 | A | Fixed Cost in Total (Remains constant) | | 6 | C | Mixed Cost (Semi-variable) | | 7 | D | Direct Material (Tracing via bill of materials) | | 8 | B | Indirect Labor (Supervisor salary in factory) | | 9 | A | Sunk Cost (Past research & development) | | 10 | C | Opportunity Cost (Salary foregone to start business) | | 11 | B | Differential Cost (Difference between alternatives) | | 12 | D | Manufacturing Overhead (Depreciation on factory plant) | | 13 | A | Period Cost (Sales commission) | | 14 | C | Cost Object (Anything costs are assigned to) | | 15 | B | Direct Cost (Traceable easily) | | 16 | D | Indirect Cost (Cannot be traced economically) | | 17 | A | Relevant Range (Normal operating range) | | 18 | C | Step Cost (Changes at specific intervals) | | 19 | B | Work in Process (Goods started but not finished) | | 20 | D | Cost of Goods Manufactured (Total production cost) |
10 comma 000 / 671 is approximately equal to 14.90 right arrow 15 Reorder Point (rounded to 191/192) Order Point Safety Stock (SS) Max Inventory Reorder Point Chapter 2 Key Formulas Used cost accounting guerrero answer key chapter 2
ROP equals open paren Average Daily Usage cross Lead Time close paren plus Safety Stock Safety Stock Safety Stock Maximum Usage Average Usage | Question No
Most editions of Guerrero include a True/False section to test conceptual clarity. Below are the standard answers (verify with your specific edition number, as phrasing may shift slightly between the 2018 and 2022 editions). Below are the standard answers (verify with your
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