ACC 252 Exam 2 2026/2027 |
Comprehensive Study Guide, Practice
Questions & Detailed Solutions
Cost per equivalent unit =
(Cost of beginning WIP inventory + Cost added during production) divided by
____________? - correct answer-Equivalent units of production
equivalent units of production - correct answer-# of units transferred out +
equivalent units in ending WIPI
Weighted Average Method - correct answer-determines equivalent units of
production by adding together the number of units transferred out plus the
equivalent units in ending Work in Process Inventory
A process costing method that blends together units and costs from both the
current and prior periods - correct answer-Weighted-average method (or
equivalent units of production)
A costing method used when essentially homogenous products are produced on a
continuous basis - correct answer-process costing
equivalent units can be calculated two ways - correct answer-FIFO
, Weighted Average Method
direct labor and manufacturing can be combined into one classification of product
cost called - correct answer-conversion cost
applying costs to units using weighted average method - correct answer-Ending
WIP x cost per equivalent units from other part= cost of ending WIP
Computing the costs of units transferred out - correct answer-units transferred x
cost per equivalent units from other part= cost of units transferred out
Process costing accumulates cost by ___________________ - correct answer-
processing department
Examines the relationship among revenue, cost, profit, and volume. Shows break-
even point at intersection of total expenses and total sales. Shows profit area
above break-even point, loss area below break-even point. - correct answer-Cost
Volume Profit Graph
The __________ ratio can be used to compute changes in contribution margin
and net operating income resulting from changes in sales volume - correct
answer-Contribution Margin (CM)
CM Ratio - correct answer-total CM/ total sales
CM per unit/ selling price per unit
Comprehensive Study Guide, Practice
Questions & Detailed Solutions
Cost per equivalent unit =
(Cost of beginning WIP inventory + Cost added during production) divided by
____________? - correct answer-Equivalent units of production
equivalent units of production - correct answer-# of units transferred out +
equivalent units in ending WIPI
Weighted Average Method - correct answer-determines equivalent units of
production by adding together the number of units transferred out plus the
equivalent units in ending Work in Process Inventory
A process costing method that blends together units and costs from both the
current and prior periods - correct answer-Weighted-average method (or
equivalent units of production)
A costing method used when essentially homogenous products are produced on a
continuous basis - correct answer-process costing
equivalent units can be calculated two ways - correct answer-FIFO
, Weighted Average Method
direct labor and manufacturing can be combined into one classification of product
cost called - correct answer-conversion cost
applying costs to units using weighted average method - correct answer-Ending
WIP x cost per equivalent units from other part= cost of ending WIP
Computing the costs of units transferred out - correct answer-units transferred x
cost per equivalent units from other part= cost of units transferred out
Process costing accumulates cost by ___________________ - correct answer-
processing department
Examines the relationship among revenue, cost, profit, and volume. Shows break-
even point at intersection of total expenses and total sales. Shows profit area
above break-even point, loss area below break-even point. - correct answer-Cost
Volume Profit Graph
The __________ ratio can be used to compute changes in contribution margin
and net operating income resulting from changes in sales volume - correct
answer-Contribution Margin (CM)
CM Ratio - correct answer-total CM/ total sales
CM per unit/ selling price per unit
