ACC 304 All Assignments ACC 304 All Assignments | Page 91

52. All of the following costs should be charged against revenue in
the period in which costs are incurred except for
a. manufacturing overhead costs for a product manufactured and sold
in the same accounting period.
b. costs which will not benefit any future period.
c. costs from idle manufacturing capacity resulting from an
unexpected plant shutdown.
d. costs of normal shrinkage and scrap incurred for the manufacture of
a product in ending inventory.
53. Which of the following types of interest cost incurred in
connection with the purchase or manufacture of inventory should be
capitalized as a product cost?
a. Purchase discounts lost