ACC 252 Exam 1 Prep 2026/2027 |
Complete Review, Practice Test & Verified
Answers
Direct costs - correct answer-costs that can be easily traced and conveniently
traced to a unit of product or other cost object (direct materials and direct labor).
Indirect costs - correct answer-costs that cannot be easily and conveniently
traced to a unit of product or other cost object (manufacturing overhead)
Direct materials - correct answer-raw materials that become an integral part of
the product and that can be conveniently traced directly to it (a radio installed in
an automobile).
Direct labor - correct answer-Those labor costs that can be easily traced to
individuals units of products (wages paid to automobile).
Manufacturing Overhead - correct answer-Manufacturing costs that cannot be
easily traced directly to specific units produced (indirect materials and indirect
labor).
, Nonmanufacturing costs - correct answer-Selling costs and administrative costs
Selling costs - correct answer-Costs necessary to secure the order and deliver the
product. Selling costs can be either direct or indirect costs.
Administrative costs - correct answer-All executive, organizational, and clerical
costs. Administrative costs can be either direct or indirect costs.
Product costs - correct answer-Direct materials, direct labor, and manufacturing
overhead (balance sheet and income statement).
Period costs - correct answer-All selling costs and administrative costs (income
statement).
Manufacturing costs - correct answer-Prime costs and conversion costs.
Prime cost - correct answer-Direct materials and direct labor.
Conversion cost - correct answer-Direct labor and manufacturing overhead.
Cost behavior - correct answer-Refer to how cost will react to changes in the level
of activity (variable costs, fixed costs, mixed costs).
Variable costs - correct answer-A cost that varies, in total, in direct proportion to
changes in the level of activity (total texting bill).
Complete Review, Practice Test & Verified
Answers
Direct costs - correct answer-costs that can be easily traced and conveniently
traced to a unit of product or other cost object (direct materials and direct labor).
Indirect costs - correct answer-costs that cannot be easily and conveniently
traced to a unit of product or other cost object (manufacturing overhead)
Direct materials - correct answer-raw materials that become an integral part of
the product and that can be conveniently traced directly to it (a radio installed in
an automobile).
Direct labor - correct answer-Those labor costs that can be easily traced to
individuals units of products (wages paid to automobile).
Manufacturing Overhead - correct answer-Manufacturing costs that cannot be
easily traced directly to specific units produced (indirect materials and indirect
labor).
, Nonmanufacturing costs - correct answer-Selling costs and administrative costs
Selling costs - correct answer-Costs necessary to secure the order and deliver the
product. Selling costs can be either direct or indirect costs.
Administrative costs - correct answer-All executive, organizational, and clerical
costs. Administrative costs can be either direct or indirect costs.
Product costs - correct answer-Direct materials, direct labor, and manufacturing
overhead (balance sheet and income statement).
Period costs - correct answer-All selling costs and administrative costs (income
statement).
Manufacturing costs - correct answer-Prime costs and conversion costs.
Prime cost - correct answer-Direct materials and direct labor.
Conversion cost - correct answer-Direct labor and manufacturing overhead.
Cost behavior - correct answer-Refer to how cost will react to changes in the level
of activity (variable costs, fixed costs, mixed costs).
Variable costs - correct answer-A cost that varies, in total, in direct proportion to
changes in the level of activity (total texting bill).
