ACCT 2102 - Conceptual Questions (Test 1) Questions With
Complete Solutions
A consumption ratio.. (multiple answers)
a. can be calculated using allocated MOH.
b. can be calculated using prepped activity levels.
c. can be used to determine cost distortion. Correct Answers a.
can be calculated using allocated MOH.
b. can be calculated using prepped activity levels.
c. can be used to determine cost distortion.
A net DECREASE in finished goods inventory means....
Correct Answers COGM (Cost of Goods Manufactured) <
COGS (Cost of Goods Sold)
A net INCREASE in finished goods inventory means.... Correct
Answers COGM (Cost of Goods Manufactured) > COGS (Cost
of Goods Sold)
After identifying the appropriate cost object, what do
manufacturers do? Correct Answers categorize the product
costs as either indirect or direct
Assuming a company has multiple cost objects, if MOH is
overallocated to a single cost object, then the cost object is
______________. Correct Answers overcosted
,Assuming a company has multiple cost objects, if MOH is
underallocated to a single cost object, then the cost object is
______________. Correct Answers undercosted
Choose the option that best finishes the following statement:
if the MOH actually used by a cost object in production is
different from the MOH allocated to the cost object ______
Correct Answers the total cost of the cost object will be
distorted.
Companies who produce their product in small batches would
use __________. Correct Answers Job Costing
direct costs Correct Answers costs that can be specifically
identified with a particular project or activity
direct labor Correct Answers "touch" labor
calculation:
hours worked x hourly wage rate
direct material Correct Answers material that is "in the recipe"
and includes all costs related to getting the material to the
factory (cost, shipping, insurance, and taxes)
Equivalent units are used in a process costing system ______
Correct Answers to enable the fair assignment of costs to a
completed unit and to a partially completed unit.
, Equivalent units are used in a process costing system ________
Correct Answers .
to enable the fair assignment of costs to a completed unit and to
a partially completed unit
Financial Accounting focuses on... Correct Answers financial
statements
Financial and Managerial accounting are similar in that both
Correct Answers use information provided by the internal
accounting system.
How many POHRs are calculated if a company uses a
departmental costing system to allocate MOH? (assume the
company has multiple production departments) Correct
Answers More than one
If a machine is set up for every 25 units produced, the activity is
categorized as a...
a. unit level activity
b. batch level activity
c. product level activity
d. facility level activity Correct Answers b. batch level activity
If an activity is performed on a group of units, it is said to be
which type of ABC activity level? Correct Answers batch
If the MOH actually used by a cost object in production is
different than the MOH allocated to the cost object, _________
Complete Solutions
A consumption ratio.. (multiple answers)
a. can be calculated using allocated MOH.
b. can be calculated using prepped activity levels.
c. can be used to determine cost distortion. Correct Answers a.
can be calculated using allocated MOH.
b. can be calculated using prepped activity levels.
c. can be used to determine cost distortion.
A net DECREASE in finished goods inventory means....
Correct Answers COGM (Cost of Goods Manufactured) <
COGS (Cost of Goods Sold)
A net INCREASE in finished goods inventory means.... Correct
Answers COGM (Cost of Goods Manufactured) > COGS (Cost
of Goods Sold)
After identifying the appropriate cost object, what do
manufacturers do? Correct Answers categorize the product
costs as either indirect or direct
Assuming a company has multiple cost objects, if MOH is
overallocated to a single cost object, then the cost object is
______________. Correct Answers overcosted
,Assuming a company has multiple cost objects, if MOH is
underallocated to a single cost object, then the cost object is
______________. Correct Answers undercosted
Choose the option that best finishes the following statement:
if the MOH actually used by a cost object in production is
different from the MOH allocated to the cost object ______
Correct Answers the total cost of the cost object will be
distorted.
Companies who produce their product in small batches would
use __________. Correct Answers Job Costing
direct costs Correct Answers costs that can be specifically
identified with a particular project or activity
direct labor Correct Answers "touch" labor
calculation:
hours worked x hourly wage rate
direct material Correct Answers material that is "in the recipe"
and includes all costs related to getting the material to the
factory (cost, shipping, insurance, and taxes)
Equivalent units are used in a process costing system ______
Correct Answers to enable the fair assignment of costs to a
completed unit and to a partially completed unit.
, Equivalent units are used in a process costing system ________
Correct Answers .
to enable the fair assignment of costs to a completed unit and to
a partially completed unit
Financial Accounting focuses on... Correct Answers financial
statements
Financial and Managerial accounting are similar in that both
Correct Answers use information provided by the internal
accounting system.
How many POHRs are calculated if a company uses a
departmental costing system to allocate MOH? (assume the
company has multiple production departments) Correct
Answers More than one
If a machine is set up for every 25 units produced, the activity is
categorized as a...
a. unit level activity
b. batch level activity
c. product level activity
d. facility level activity Correct Answers b. batch level activity
If an activity is performed on a group of units, it is said to be
which type of ABC activity level? Correct Answers batch
If the MOH actually used by a cost object in production is
different than the MOH allocated to the cost object, _________
