ACIS EXAM 2 ACTUAL QUESTIONS
AND CORRECT ANSWERS
Dollar sales for company to break even = - CORRECT ANSWERS✅✅(Traceable fixed
expenses + Common fixed expenses) ÷ Overall contribution margin (CM) ratio
When the units produced are greater than the units sold, absorption costing income will be
_________ than variable costing income because absorption costing ______ some fixed
manufacturing overhead cost in ________ inventory whereas variable costing ________ each
period's fixed manufacturing overhead on the income statement. - CORRECT
ANSWERS✅✅greater, defers, ending, expenses
Activity-based costing (ABC) is a costing method that provides managers with cost
information for strategic and other decisions that potentially affect _______ and therefore
"fixed" as well as variable costs. - CORRECT ANSWERS✅✅capacity
ABC uses __________ costs pools to allocate costs to products whereas traditional
absorption costing usually uses fewer cost pools. - CORRECT ANSWERS✅✅numerous
ABC may assign ______________ and manufacturing costs to products whereas _________
_________costing does not assign non-manufacturing costs to products. - CORRECT
ANSWERS✅✅nonmanufacturing, traditional absorption
ABC may exclude some manufacturing costs from its product costs whereas traditional
absorption costing includes ___ manufacturing costs in its product cost calculations. -
CORRECT ANSWERS✅✅all
Variable costing treats direct labor, direct materials, and Variable Manufacturing Overhead as
_________ ________ - CORRECT ANSWERS✅✅product costs
Variable Costing treats FMOH as a _________ Cost that is expensed 100% in the period in
which it is incurred. - CORRECT ANSWERS✅✅PERIOD
_____ ______ Activities include things such as Assembling Products. - CORRECT
ANSWERS✅✅Unit Level
AND CORRECT ANSWERS
Dollar sales for company to break even = - CORRECT ANSWERS✅✅(Traceable fixed
expenses + Common fixed expenses) ÷ Overall contribution margin (CM) ratio
When the units produced are greater than the units sold, absorption costing income will be
_________ than variable costing income because absorption costing ______ some fixed
manufacturing overhead cost in ________ inventory whereas variable costing ________ each
period's fixed manufacturing overhead on the income statement. - CORRECT
ANSWERS✅✅greater, defers, ending, expenses
Activity-based costing (ABC) is a costing method that provides managers with cost
information for strategic and other decisions that potentially affect _______ and therefore
"fixed" as well as variable costs. - CORRECT ANSWERS✅✅capacity
ABC uses __________ costs pools to allocate costs to products whereas traditional
absorption costing usually uses fewer cost pools. - CORRECT ANSWERS✅✅numerous
ABC may assign ______________ and manufacturing costs to products whereas _________
_________costing does not assign non-manufacturing costs to products. - CORRECT
ANSWERS✅✅nonmanufacturing, traditional absorption
ABC may exclude some manufacturing costs from its product costs whereas traditional
absorption costing includes ___ manufacturing costs in its product cost calculations. -
CORRECT ANSWERS✅✅all
Variable costing treats direct labor, direct materials, and Variable Manufacturing Overhead as
_________ ________ - CORRECT ANSWERS✅✅product costs
Variable Costing treats FMOH as a _________ Cost that is expensed 100% in the period in
which it is incurred. - CORRECT ANSWERS✅✅PERIOD
_____ ______ Activities include things such as Assembling Products. - CORRECT
ANSWERS✅✅Unit Level
