Ac505 Midterm

1. (TCO A) The variable portion of advertising costs is a: (Points : 6) Conversion YES... Period NO Conversion YES .... Period YES Conversion NO.... Period YES Conversion NO.... Period NO | 2. (TCO A) Fixed costs expressed on a per unit basis: (Points : 6) will increase with increases in activity. will decrease with increases in activity. are not affected by activity. should be ignored in making decisions since they cannot change. | 3. (TCO A) Property taxes on a company's factory building would be classified as a(n): (Points : 6) sunk cost opportunity cost period cost variable cost manufacturing cost | 4. (TCO A) When the activity level is expected to increase within the relevant range, what effects would be anticipated with respect to each of the following? Fixed Cost Per Unit Variable Cost Per Unit(Points : 6) Increase No Change Increase Increase decrease No Change No Change Increase | 5. (TCO F) Which of the following statements is true? I. Overhead application may be made slowly as a job is worked on.II. Overhead application may be made in a single application at the time of completion of the job.III. Overhead application should be made to any job not completed at year-end in order to properly value the work in process inventory.(Points : 6) Only statement I is true Only statement II is true Both statements I and II are true Statements I, II, and III are all true | 6. (TCO F) A job order cost system is employed in those situations where: (Points : 6) many different products, jobs, or batches of production are being produced each period manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis the product moves from