Mid Term
1. (TCO A) Direct material cost is a part of: (Points : 6) Conversion Cost YES.... Prime Cost NO Conversion Cost NO.... Prime Cost YES Conversion Cost YES.... Prime Cost YES Conversion Cost NO.... Prime Cost NO | |
2. (TCO A) The costs of staffing and operating the accounting department at Central Hospital would be considered by the Department of Surgery to be: (Points : 6) direct costs. sunk costs. incremental costs. None of the above. |
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) Within the relevant range, variable costs can be expected to: (Points : 6) 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 these. |
5. (TCO F) Emco Company uses direct labor cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company included in direct labor cost a portion of indirect labor. The effect of this misclassification will be to: (Points : 6) understate the predetermined overhead rate overstate the predetermined overhead rate have no effect on the predetermined overhead rate cannot be determined from the information given |
6. (TCO F) Under a job-order costing system, the product being manufactured: (Points : 6) is homogeneous. passes from one manufacturing department to the next before being completed. can be custom manufactured. has a unit cost that is easy to calculate by dividing total production costs by the units produced. |
2. (TCO A) The costs of staffing and operating the accounting department at Central Hospital would be considered by the Department of Surgery to be: (Points : 6) direct costs. sunk costs. incremental costs. None of the above. |
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) Within the relevant range, variable costs can be expected to: (Points : 6) 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 these. |
5. (TCO F) Emco Company uses direct labor cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company included in direct labor cost a portion of indirect labor. The effect of this misclassification will be to: (Points : 6) understate the predetermined overhead rate overstate the predetermined overhead rate have no effect on the predetermined overhead rate cannot be determined from the information given |
6. (TCO F) Under a job-order costing system, the product being manufactured: (Points : 6) is homogeneous. passes from one manufacturing department to the next before being completed. can be custom manufactured. has a unit cost that is easy to calculate by dividing total production costs by the units produced. |