ACC 310F FINAL EXAM STUDY GUIDE QUESTIONS AND
ANSWERS, ALL CORRECT!!
Which of the following is least likely a variable cost for P. Terry's?
A. Janitors' hourly wages
B. Deep fryer used to make fries
C. Paper bags for to-go orders
D. Beef, potatoes, and buns Answer - Deep fryer used to make fries
A controllable cost is a relevant cost.
A. True
B. False Answer - False
Which of the following statements describes the behavior of step costs in
relation to fixed and variable costs?
A. A step cost behaves more like a fixed cost as the step size decreases
B. A step cost behaves like a variable cost, but not like a fixed cost
C. A step cost behaves like a fixed cost, but not like a variable cost
D. A step cost behaves like a variable cost as the step size decreases Answer - A
step cost behaves like a variable cost as the step size decreases
, Which of the following statements is not true?
A. Using the account classification method does not require us to examine each
cost account in detail.
B. All of the above are correct statements.
C. Using the account classification method does not require the use of
statistical analysis.
D. Using the account classification method frequently requires considerable
knowledge and experience.
E. Using the account classification method may be a daunting task for very
large firms that offer a wide range of products and have expansive account
lists. Answer - Using the account classification method does not require us to
examine each cost account in detail.
Which of the following is true?
A. As production levels decrease, fixed costs per unit increase
B. As production levels increase, total fixed costs decrease
C. As production levels decrease, variable costs per unit increase
D. As production levels decrease, Answer - As production levels decrease, fixed
costs per unit increase
When management must decide whether to offer special promotions to reduce
excess inventory, which of the following is not relevant?
A. The cost of offering the promotion
B. The unit product cost of the inventory being sold
C. The selling price of the product during the promotion
ANSWERS, ALL CORRECT!!
Which of the following is least likely a variable cost for P. Terry's?
A. Janitors' hourly wages
B. Deep fryer used to make fries
C. Paper bags for to-go orders
D. Beef, potatoes, and buns Answer - Deep fryer used to make fries
A controllable cost is a relevant cost.
A. True
B. False Answer - False
Which of the following statements describes the behavior of step costs in
relation to fixed and variable costs?
A. A step cost behaves more like a fixed cost as the step size decreases
B. A step cost behaves like a variable cost, but not like a fixed cost
C. A step cost behaves like a fixed cost, but not like a variable cost
D. A step cost behaves like a variable cost as the step size decreases Answer - A
step cost behaves like a variable cost as the step size decreases
, Which of the following statements is not true?
A. Using the account classification method does not require us to examine each
cost account in detail.
B. All of the above are correct statements.
C. Using the account classification method does not require the use of
statistical analysis.
D. Using the account classification method frequently requires considerable
knowledge and experience.
E. Using the account classification method may be a daunting task for very
large firms that offer a wide range of products and have expansive account
lists. Answer - Using the account classification method does not require us to
examine each cost account in detail.
Which of the following is true?
A. As production levels decrease, fixed costs per unit increase
B. As production levels increase, total fixed costs decrease
C. As production levels decrease, variable costs per unit increase
D. As production levels decrease, Answer - As production levels decrease, fixed
costs per unit increase
When management must decide whether to offer special promotions to reduce
excess inventory, which of the following is not relevant?
A. The cost of offering the promotion
B. The unit product cost of the inventory being sold
C. The selling price of the product during the promotion
