Match each following terms with their correct description from the items listed below.
-A cost that is NOT inventoried
A)Period Cost
B)Direct Cost
C)Opportunity Cost
D)Variable Cost
E)Indirect Cost
F)Fixed Cost
G)Product Cost

Question

Quizplus · Accepted Answer

Period costs are expenses incurred in a particular period and are not related to the production of goods. These costs are not included in the cost of goods sold or treated as inventory.

Answer: B
 Direct costs are costs that can be directly attributed to the production of goods or services. These costs include materials, labor, and other direct costs.

Answer: C
 Opportunity cost is the cost of the next best alternative foregone. It is the value of the benefits that could have been gained from an alternative use of resources.

Answer: D
 Variable costs are expenses that vary with the level of production. These costs increase or decrease in proportion to the production level.

Answer: E
 Indirect costs are expenses that are not directly related to the production of goods or services. These costs include overheads such as rent, utilities, and administrative expenses.

Answer: F
 Fixed costs are expenses that do not vary with the level of production. These costs are incurred regardless of the production level.

Answer: G
 Product costs are the costs associated with the production of goods. These costs include direct materials, direct labor, and manufacturing overhead costs. Product costs are inventoried and included in the cost of goods sold.

Match Each Following Terms with Their Correct Description from the Items