Accounting

Grade Details |

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There are 2 pages in this exam:

Page:   | 1  |    | 2  |    |

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1. | Question: | (TCO A)  Wages paid to a timekeeper in a factory are a: |

  | Your 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 | |    CORRECT |

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  | Instructor Explanation: | Chapter 2 |

  | Points Received: | 6 of 6 |

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

  | Your Answer: |          | | period cost. | |     |

         | | opportunity cost. | |     |

         | | sunk cost. | |    CORRECT |

         | | differential cost. | |     |

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  | Instructor Explanation: | Chapter 2 |

  | Points Received: | 6 of 6 |

3. | Question: | (TCO A) Inventoriable costs are also known as: |

  | Your Answer: |          | | variable costs | |     |

         | | conversion costs | |     |

         | | product costs | |    CORRECT |

         | | fixed costs | |     |

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  | Instructor Explanation: | Chapter 2 |

  | Points Received: | 6 of 6 |

4. | Question: | (TCO A) When the activity level is expected to decline within the relevant range, what effects would be anticipated with respect to each of the following? Fixed Cost Per Unit            Variable Cost Per Unit |

  | Your Answer: |          | | Increase                No Change | |    CORRECT |

         | | Increase                 Increase | |     |

         | | No Change             No Change | |     |

         | | No Change             Increase | |     |

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  | Instructor Explanation: | Chapter 5 |

  | Points Received: | 6 of 6 |

5. | Question: | (TCO F) Emco Company uses direct labor cost as a basis for computing its predetermined overhead...