10.

A cost that shifts upward or downward when activity changes by a certain interval is referred to as a

___________ cost.

ANS: step

DIF: Easy OBJ: 2-1

11. Another name for inventoriable costs is ______________ costs.

ANS: product

DIF: Easy OBJ: 2-2

12. The three stages of production for a manufacturing firm are ______________, ________________,

and ______________________.

ANS: raw materials, work in process, finished goods

DIF: Easy OBJ: 2-3

13. Costs that are incurred to improve quality by precluding defects and improper processing are
referred

to as ____________________ costs.

ANS: prevention

DIF: Moderate OBJ: 2-4

14. Costs incurred for monitoring or inspecting products are known as ____________________ costs.

ANS: appraisal

DIF: Moderate OBJ: 2-4

15. Costs that result from defective units, product returns, and complaints are referred to as

_______________________ costs.

ANS: failure

DIF: Moderate OBJ: 2-4