ACCY 201 EXAM 2 2026 ACCOUNTING
PRINCIPLES DRILL PACK ANSWER SHEET
◉ Conversion Cost.
Answer: DL + MOH
◉ Prime Cost.
Answer: DM + DL
◉ Raw Materials.
Answer: any materials that go into the final product
◉ Relevant Range.
Answer: range of activity within which assumptions about variable
and fixed cost behaviors are valid
◉ Indirect Materials.
Answer: Small items of material whose costs can't easily be traced
back
◉ Indirect Labor.
, Answer: The labor costs of janitors, supervisors, materials handlers,
etc. that can't be traced to particular products.
◉ Finished Goods.
Answer: units of product that have been completed but not yet sold
to customers
◉ Discretionary Fixed Costs.
Answer: Those fixed costs that arise from annual decisions by
management to spend on certain fixed cost items like advertising
and research.
◉ Differential Revenue.
Answer: the difference in futurerevenue between two alternatives
◉ Incremental Cost.
Answer: an increase in cost between two alternatives
◉ Allocation Base.
Answer: A measure of activity such as direct labor-hours or
machine-hours that is used to assign costs to cost objects
◉ Absorption Costing.
PRINCIPLES DRILL PACK ANSWER SHEET
◉ Conversion Cost.
Answer: DL + MOH
◉ Prime Cost.
Answer: DM + DL
◉ Raw Materials.
Answer: any materials that go into the final product
◉ Relevant Range.
Answer: range of activity within which assumptions about variable
and fixed cost behaviors are valid
◉ Indirect Materials.
Answer: Small items of material whose costs can't easily be traced
back
◉ Indirect Labor.
, Answer: The labor costs of janitors, supervisors, materials handlers,
etc. that can't be traced to particular products.
◉ Finished Goods.
Answer: units of product that have been completed but not yet sold
to customers
◉ Discretionary Fixed Costs.
Answer: Those fixed costs that arise from annual decisions by
management to spend on certain fixed cost items like advertising
and research.
◉ Differential Revenue.
Answer: the difference in futurerevenue between two alternatives
◉ Incremental Cost.
Answer: an increase in cost between two alternatives
◉ Allocation Base.
Answer: A measure of activity such as direct labor-hours or
machine-hours that is used to assign costs to cost objects
◉ Absorption Costing.
