ACG 2071 FSU Exam Questions With Answers
Graded A+ 2025/2026
What are the three pillars of sustainability - 3Ps: people (social), planet (environment),
and profit (economic)
What is ethical behavior? - it means to do the right thing, regardless of the
consequences. Not all unethical behavior is illegal but all illegal behavior is unethical.
What are 2 ways to generate profit? - Increase revenues or sales, and/or decrease
expenses/costs
What are 3 types of companies? - service (intangible), merchandising (reselling), and
manufacturing (producing)
What are the 3 types of inventory for manufacturing companies? - Raw materials, work
in progress, and finished goods
What is a cost object? - this is anything that we as a company need to know and figure
out the cost of
What is a direct costs? - any cost that we can TRACE DIRECTLY to a cost object.
What is an indirect cost? - any cost that we CANNOT trace to a cost object, therefore
we must allocate them.
Example of direct cost - the cost object is a football team and the direct cost are the
equipment for the players, salaries of coaches, etc.
Example of indirect cost - the cost object is the deli section of a grocery store, the
indirect cost is the salaries of the checkout clerk, the cost of carts, etc.
What is an product cost? - this is the cost that is incurred when companies resell their
product. It's the cost to produce the good.
What are examples of period costs? - research, development, designing, marketing,
distributing, and customer service.
How do period costs flow through the financial statements? - these costs are expensed
in the period incurred. Also known as operating expenses or selling, general,
administrative expenses.
How do product costs flow through the financial statements? - these costs flow through
inventory first (which is on the balance sheet). Once they are sold, they show up on the
income statement.
Graded A+ 2025/2026
What are the three pillars of sustainability - 3Ps: people (social), planet (environment),
and profit (economic)
What is ethical behavior? - it means to do the right thing, regardless of the
consequences. Not all unethical behavior is illegal but all illegal behavior is unethical.
What are 2 ways to generate profit? - Increase revenues or sales, and/or decrease
expenses/costs
What are 3 types of companies? - service (intangible), merchandising (reselling), and
manufacturing (producing)
What are the 3 types of inventory for manufacturing companies? - Raw materials, work
in progress, and finished goods
What is a cost object? - this is anything that we as a company need to know and figure
out the cost of
What is a direct costs? - any cost that we can TRACE DIRECTLY to a cost object.
What is an indirect cost? - any cost that we CANNOT trace to a cost object, therefore
we must allocate them.
Example of direct cost - the cost object is a football team and the direct cost are the
equipment for the players, salaries of coaches, etc.
Example of indirect cost - the cost object is the deli section of a grocery store, the
indirect cost is the salaries of the checkout clerk, the cost of carts, etc.
What is an product cost? - this is the cost that is incurred when companies resell their
product. It's the cost to produce the good.
What are examples of period costs? - research, development, designing, marketing,
distributing, and customer service.
How do period costs flow through the financial statements? - these costs are expensed
in the period incurred. Also known as operating expenses or selling, general,
administrative expenses.
How do product costs flow through the financial statements? - these costs flow through
inventory first (which is on the balance sheet). Once they are sold, they show up on the
income statement.
