Questions from Cost Management

Q: Distinguish between direct and indirect costs and give several examples of each

Distinguish between direct and indirect costs and give several examples of each.

Q: Provide an example of an indirect labor cost.

Provide an example of an indirect labor cost.

Q: Are all direct costs variable? Explain.

Are all direct costs variable? Explain.

Q: Are all fixed costs indirect? Explain.

Are all fixed costs indirect? Explain.

Q: Sweet Dream Hotel has labor costs that are mostly fixed, including

Sweet Dream Hotel has labor costs that are mostly fixed, including registration desk, maintenance and general repairs and cleaning. The housekeeping staff is hired in sufficient numbers to clean the n...

Q: Define cost driver.

Define cost driver.

Q: What is the difference between variable and fixed costs?

What is the difference between variable and fixed costs?

Q: Explain step costs and give an example.

Explain step costs and give an example.

Q: Define relevant range and explain its use.

Define relevant range and explain its use.

Q: What are conversion costs? What are prime costs?

What are conversion costs? What are prime costs?