ACCT 505 Practice Midterm Page 1 1. Indirect labor is a part of a prime cost. b conversion cost. - c period cost. d nonmanufacturing cost. Answer: B Explanation: Conversion costs are all m anufacturing costs other than direct materials cost. 2. Prime cost and conversion cost share what common element of total cost? A Direct materials B Direct labor -- C Variable overhead D Variable overhead Answer: B Explanation: Prime costs and conversion costs have direct labor cost as an overlapping item. For...

ACCT 505 - Test Bank-Managerial Accounting/ACCT 505 - Test Bank-Managerial Accounting. True/False Questions 1. Although financial and managerial accounting differ in many ways, they are similar in that both rely on the same underlying financial data. Answer: True Level: Medium LO: 1 2. Managerial accounting is a branch of financial accounting and serves essentially the same purposes as financial accounting. Answer: False Level: Medium LO: 1 3. Managerial accounting places greater emphasis on the...

Page 1 (TCO A) Direct material cost is a part of: (TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n): (TCO A) The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n): (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? (TCO F) Emco Company uses direct labor cost as a basis for computing its ...