ACC 241 Exam 100% Accurate!!
Total inventoriable product cost - ANSWERSDM + DL + MOH
Total prime cost - ANSWERSDM + DL
Total conversion cost - ANSWERSMOH + DL
Total MOH costs - ANSWERSIndirect materials + indirect labor + other MOH
Manufacturing overhead allocated - ANSWERSPredetermined manufacturing overhead
rate x actual DL costs
Overallocated - ANSWERSIf allocated is more than actual
Hourly rate - ANSWERSannual salary / hours per year
DL cost - ANSWERSHourly rate x billing hours
Gross profit - ANSWERSSales price (per unit) - total job cost (per unit) [expenses] =
gross profit (per unit)
The value chain - ANSWERSR&Development, Design, Production/purchases,
Marketing, Distribution, Customer service
Prevention costs - ANSWERScost incurred to avoid producing poor-quality goods or
services. Examples: training personnel, evaluating potential suppliers, using better
materials, preventive maintenance, improved equipment, redesigning product or
process
Appraisal costs - ANSWERScosts incurred to detect poor-quality goods or services.
Examples: inspection of incoming materials, inspection at various stages of production,
inspection of final products or services, product testing, cost of inspection equipment
internal failure costs - ANSWERScosts incurred on defective units before delivery to
customers. Examples: production loss caused by downtime, rework, abnormal
quantities of scrap, rejected product units, disposal of rejected units, machine
breakdowns
Product-level - ANSWERSactivities and costs incurred for a particular product,
regardless of the number of units or batches of the product produced
Total inventoriable product cost - ANSWERSDM + DL + MOH
Total prime cost - ANSWERSDM + DL
Total conversion cost - ANSWERSMOH + DL
Total MOH costs - ANSWERSIndirect materials + indirect labor + other MOH
Manufacturing overhead allocated - ANSWERSPredetermined manufacturing overhead
rate x actual DL costs
Overallocated - ANSWERSIf allocated is more than actual
Hourly rate - ANSWERSannual salary / hours per year
DL cost - ANSWERSHourly rate x billing hours
Gross profit - ANSWERSSales price (per unit) - total job cost (per unit) [expenses] =
gross profit (per unit)
The value chain - ANSWERSR&Development, Design, Production/purchases,
Marketing, Distribution, Customer service
Prevention costs - ANSWERScost incurred to avoid producing poor-quality goods or
services. Examples: training personnel, evaluating potential suppliers, using better
materials, preventive maintenance, improved equipment, redesigning product or
process
Appraisal costs - ANSWERScosts incurred to detect poor-quality goods or services.
Examples: inspection of incoming materials, inspection at various stages of production,
inspection of final products or services, product testing, cost of inspection equipment
internal failure costs - ANSWERScosts incurred on defective units before delivery to
customers. Examples: production loss caused by downtime, rework, abnormal
quantities of scrap, rejected product units, disposal of rejected units, machine
breakdowns
Product-level - ANSWERSactivities and costs incurred for a particular product,
regardless of the number of units or batches of the product produced
