ACC 312 Final Review Exam Latest Update
Which of the following would not be classified as a product cost?
A. Direct materials
B. Direct labor
C. Indirect materials
D. Insurance on a manufacturing plant
E. Sales commissions - ANSWER Sales Commissions
The accounting records of Carter Company revealed the following information:
Cost of goods manufactured $754,000
Work-in-process inventory, 1/1 $58,000
Finished-goods inventory, 1/1 $125,000
Work-in-process inventory, 12/31 $49,000
Finished-goods inventory, 12/31 $158,000
Carter's cost of goods sold is: - ANSWER $721,000
The accounting records of Mathers Corporation revealed the following selected
costs:
Advertising expenses, $65,000;
plant supervision, $190,000;
and administrative expenses, $185,000.
Mathers' period costs total: - ANSWER $250,000
An employee accidentally overstated the year's advertising expense by $50,000.
Which of the following correctly depicts the effect of this error? - ANSWER no
effect to COGS or COGM, because advertising expense is a period cost, not a
product cost
Which of the following employees of a commercial printer/publisher would be
classified as direct labor?
A. Book binder.
B. Plant security guard.
C. Sales representative.
D. Plant supervisor.
E. Payroll supervisor. - ANSWER A. Book binder
Within the relevant range, a curvilinear cost function can sometimes be graphed
as a: - ANSWER sloping, straight line
, A company observed a decrease in the cost per unit. All other things being
equal, which ofthe following is most likely true? - ANSWER The company is
studying a fixed cost, and total volume has increased.
Which of the following statements about the visual-fit method is (are) true?
I. The method results in the creation of a scatter diagram.
II. The method is not totally objective because of the manner in which the cost
line is determined.
III. The method is especially helpful in the determination of outliers. - ANSWER I,
II, and III
The relevant range is that range of activity: - ANSWER where management
expects the firm to operate
Wayne, Inc. recently conducted a least-squares regression analysis to predict
selling expenses. The company has constructed the following regression
equation: Y = 329,000 + 7.80X. Which of the following statements is false if the
primary cost driver is number of units sold?
A. The company anticipates $329,000 of fixed selling expenses.
B. "Y" represents total selling expenses.
C. The company expects both variable and fixed selling expenses.
D. For each unit sold, total selling expenses will increase by $7.80.
E. "X" represents the number of hours worked during the period. - ANSWER E.
"X" represents the number of hours worked during the period
Which of the following manufacturers would most likely use job-order costing?
A. Chemical manufacturers.
B. Microchip processors.
C. Custom-furniture manufacturers.
D. Gasoline refiners.
E. Fertilizer manufacturers. - ANSWER C. Custom-furniture manufacturers
West Company, which uses labor hours to apply overhead to manufacturing,
may have increased amounts of underapplied overhead at month-end if:
A. suppliers of direct materials have an across-the-board price increase.
B. an accountant failed to record the period's charges for plant maintenance
and security.
C. employees are hit hard with a widespread outbreak of the flu.
D. direct laborers are granted a wage increase.
E. outlays for advertising expenditures are increased. - ANSWER C. employees
are hit hard with a widespread outbreak of the flu.
The assignment of direct labor cost to individual jobs is based on: - ANSWER the
actual time spent on each job multiplied by the wage rate
Which of the following would not be classified as a product cost?
A. Direct materials
B. Direct labor
C. Indirect materials
D. Insurance on a manufacturing plant
E. Sales commissions - ANSWER Sales Commissions
The accounting records of Carter Company revealed the following information:
Cost of goods manufactured $754,000
Work-in-process inventory, 1/1 $58,000
Finished-goods inventory, 1/1 $125,000
Work-in-process inventory, 12/31 $49,000
Finished-goods inventory, 12/31 $158,000
Carter's cost of goods sold is: - ANSWER $721,000
The accounting records of Mathers Corporation revealed the following selected
costs:
Advertising expenses, $65,000;
plant supervision, $190,000;
and administrative expenses, $185,000.
Mathers' period costs total: - ANSWER $250,000
An employee accidentally overstated the year's advertising expense by $50,000.
Which of the following correctly depicts the effect of this error? - ANSWER no
effect to COGS or COGM, because advertising expense is a period cost, not a
product cost
Which of the following employees of a commercial printer/publisher would be
classified as direct labor?
A. Book binder.
B. Plant security guard.
C. Sales representative.
D. Plant supervisor.
E. Payroll supervisor. - ANSWER A. Book binder
Within the relevant range, a curvilinear cost function can sometimes be graphed
as a: - ANSWER sloping, straight line
, A company observed a decrease in the cost per unit. All other things being
equal, which ofthe following is most likely true? - ANSWER The company is
studying a fixed cost, and total volume has increased.
Which of the following statements about the visual-fit method is (are) true?
I. The method results in the creation of a scatter diagram.
II. The method is not totally objective because of the manner in which the cost
line is determined.
III. The method is especially helpful in the determination of outliers. - ANSWER I,
II, and III
The relevant range is that range of activity: - ANSWER where management
expects the firm to operate
Wayne, Inc. recently conducted a least-squares regression analysis to predict
selling expenses. The company has constructed the following regression
equation: Y = 329,000 + 7.80X. Which of the following statements is false if the
primary cost driver is number of units sold?
A. The company anticipates $329,000 of fixed selling expenses.
B. "Y" represents total selling expenses.
C. The company expects both variable and fixed selling expenses.
D. For each unit sold, total selling expenses will increase by $7.80.
E. "X" represents the number of hours worked during the period. - ANSWER E.
"X" represents the number of hours worked during the period
Which of the following manufacturers would most likely use job-order costing?
A. Chemical manufacturers.
B. Microchip processors.
C. Custom-furniture manufacturers.
D. Gasoline refiners.
E. Fertilizer manufacturers. - ANSWER C. Custom-furniture manufacturers
West Company, which uses labor hours to apply overhead to manufacturing,
may have increased amounts of underapplied overhead at month-end if:
A. suppliers of direct materials have an across-the-board price increase.
B. an accountant failed to record the period's charges for plant maintenance
and security.
C. employees are hit hard with a widespread outbreak of the flu.
D. direct laborers are granted a wage increase.
E. outlays for advertising expenditures are increased. - ANSWER C. employees
are hit hard with a widespread outbreak of the flu.
The assignment of direct labor cost to individual jobs is based on: - ANSWER the
actual time spent on each job multiplied by the wage rate
