ACCT505 Managerial Accounting Midterm

1.
Question :
(TCO A) Wages paid to an assembly line worker in a factory are a

Student Answer:

Prime Cost YES.....Conversion Cost NO.

Prime Cost YES.....Conversion Cost YES.

Prime Cost NO....Conversion Cost NO.

Prime Cost NO.....Conversion Cost YES. Instructor Explanation:
Chapter 2

Points Received:
6 of 6 Comments:

2.
Question :
(TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n)

Student Answer:

period cost.

incremental cost.

opportunity cost.

None of the above Instructor Explanation:
Chapter 2

Points Received:
6 of 6 Comments:

3.
Question :
(TCO A) Property taxes on a company's factory building would be classified as a(n)

Student Answer:

sunk cost.

opportunity cost.

period cost.

variable cost.

manufacturing cost. Instructor Explanation:
Chapter 2

Points Received:
6 of 6 Comments:

4.
Question :
(TCO A) Within the relevant range, variable costs can be expected to

Student Answer:

vary in total in direct proportion to changes in the activity level.

remain constant in total as the activity level changes.

increase on a per-unit basis as the activity level increases.

increase on a per-unit basis as the activity level decreases.

None of the above Instructor Explanation:
Chapter 5

Points Received:
6 of 6 Comments:

5.
Question :
(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.

Student Answer:

Only statement I is