ACCT 2020- exam 2 1-102 Questions And
Answers 2025 Practice Test Exam Questions
And Correct Answers Rated 100%
Which of the following is not a good reason for a paint
manufacturer to use activity-based costing?
A. The paint industry is highly competitive.
B. The paint manufacturer produces a variety of paint
types, with some types much more difficult to produce
than other types.
C. The paint manufacturer has the technology in place to
capture the required information to implement activity-
based costing.
,D. Most costs are direct; indirect costs are a small
proportion of total costs. - CORRECT ANSWER-D
A computer manufacturer's spending on testing its
computers before shipping them to customers helps
reduce which of the following costs?
A.External failure costs
B.Prevention costs
C. Appraisal costs
D. Internal failure costs - CORRECT ANSWER-A
The cost of reworking defective products before shipping
to customers would be classified as which type of quality
costs?
A. Internal failure cost
B. Appraisal cost
C.Prevention cost
D. External failure cost - CORRECT ANSWER-A
Cost distortion is likely to cause:
,A.overcosting of all products.
B.undercosting of all products.
C.overcosting some products and undercosting other
products.
D.accurate costing of all products. - CORRECT ANSWER-C
Which of the following reasons would indicate that a
company should consider using departmental overhead
rates rather than using a single plantwide overhead rate?
A. Each department spends different amounts on
manufacturing overhead.
B. Each product is in each department for a different
length of time.
C. Each department incurs different types of
manufacturing overhead.
D. All of the above statements are reasons that a
company would choose departmental overhead rates
rather than using a single plantwide overhead rate. -
CORRECT ANSWER-D
, The legal costs associated with filing a patent for a new
model of scooter at a toy manufacturer is an example of
which type of activity?
A. Unit-level
B. Batch-level
C. Product-level
D. Facility-level - CORRECT ANSWER-C
Insurance on a company's buildings would most likely be
classified as a ______________ cost?
A. product-level
B. unit-level
C. batch-level
D. facility-level - CORRECT ANSWER-D
All of the following statements are true except:
A. An R-value close to 1 indicates that the two variables
are strongly related.
Answers 2025 Practice Test Exam Questions
And Correct Answers Rated 100%
Which of the following is not a good reason for a paint
manufacturer to use activity-based costing?
A. The paint industry is highly competitive.
B. The paint manufacturer produces a variety of paint
types, with some types much more difficult to produce
than other types.
C. The paint manufacturer has the technology in place to
capture the required information to implement activity-
based costing.
,D. Most costs are direct; indirect costs are a small
proportion of total costs. - CORRECT ANSWER-D
A computer manufacturer's spending on testing its
computers before shipping them to customers helps
reduce which of the following costs?
A.External failure costs
B.Prevention costs
C. Appraisal costs
D. Internal failure costs - CORRECT ANSWER-A
The cost of reworking defective products before shipping
to customers would be classified as which type of quality
costs?
A. Internal failure cost
B. Appraisal cost
C.Prevention cost
D. External failure cost - CORRECT ANSWER-A
Cost distortion is likely to cause:
,A.overcosting of all products.
B.undercosting of all products.
C.overcosting some products and undercosting other
products.
D.accurate costing of all products. - CORRECT ANSWER-C
Which of the following reasons would indicate that a
company should consider using departmental overhead
rates rather than using a single plantwide overhead rate?
A. Each department spends different amounts on
manufacturing overhead.
B. Each product is in each department for a different
length of time.
C. Each department incurs different types of
manufacturing overhead.
D. All of the above statements are reasons that a
company would choose departmental overhead rates
rather than using a single plantwide overhead rate. -
CORRECT ANSWER-D
, The legal costs associated with filing a patent for a new
model of scooter at a toy manufacturer is an example of
which type of activity?
A. Unit-level
B. Batch-level
C. Product-level
D. Facility-level - CORRECT ANSWER-C
Insurance on a company's buildings would most likely be
classified as a ______________ cost?
A. product-level
B. unit-level
C. batch-level
D. facility-level - CORRECT ANSWER-D
All of the following statements are true except:
A. An R-value close to 1 indicates that the two variables
are strongly related.
