Anonymous asked in 商業與財經稅捐台灣 · 1 decade ago


1.The cost of the cushions that are used to manufacture sofas is best described as a:

A.Conversion cost

B.Period cost.

C.Variable cost.

D.Manufacturing overhead cost.

2.Chezpere Company manufactures and sells washing machines. In order to make assembly of the machines faster and easier, some of the mental parts in the machines are coated with grease. How should the cost of this grease be classified?

Direct Material Cost Fixed Cost

A. Yes Yes

B. Yes No

C. No Yes

D. No No

3. In the preparation of the schedule of Cost of Goods Manufactured, the accountant incorrectly included as part of manufacturing overhead the rental expense on the firm’s retail facilities. This inclusion would:

A. Overstate period expenses on the income statement.

B. Overstate the cost of goods sold on the income statement.

C. Understate the cost of goods manufactured.

D. Have no effect on the cost of goods manufactured.

1 Answer

  • 1 decade ago
    Favorite Answer

    1.c; because the cushion can directly trace to individual sofa, it is direct material

    2.D. The price of grease is minor. It should be classify to manufacturing overhead .

    3.b. The rental expense is period cost. If it be allocated to manufacturing overhead. the CGS and E.I will be overvalued.

Still have questions? Get your answers by asking now.