For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions, press or click on the blank space provided.
If you have difficulty answering the following questions, learn more about this topic by reading our Nonmanufacturing Overhead (Explanation).
Selling expenses should be allocated to the cost of goods sold for external financial reporting.
According to U.S. accounting principles, interest expense is an indirect product cost.
SG&A expenses can be classified as _______________ costs.
Commissions expense is part of the cost of goods sold.
SG&A expenses can vary between products and between customers.
Activity based costing is recommended for the allocation of SG&A expenses in order to determine the true profitability of a product or a customer.
Want more practice questions?
Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO.
We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Balance Sheet, Income Statement, Cash Flow Statement, Working Capital and Liquidity, Financial Ratios, Bank Reconciliation, and Payroll Accounting. Click here to learn more.
Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. He is the sole author of all the materials on AccountingCoach.com. Read more about the author.
