ACC 241 Exam #1 Multiple choice
Questions and Answers 100%
Correct
If the finished goods inventory decreases between the beginning and the end of a
period, then the cost of goods manufactured for the period is larger than the cost of
goods sold. T/F - ANSWER - False (Finished Goods T-Account)
Predetermined overhead rates are based on actual cost and activity data. T/F -
ANSWER - False (Total ESTIMATED manufacturing overhead cost/Total ESTIMATED
cost driver)
Since actual MOH is $20,000 less than estimated MOH, then overhead must have
been over-allocated by $20,000. T/F - ANSWER - False (Compare applied to
estimated, not actual)
In activity-based costing, a separate activity rate (i.e., predetermined overhead
rate) is computed for each activity cost pool by dividing the estimated overhead
cost in the activity cost pool by the total expected activity for the activity cost pool.
T/F - ANSWER - True
Choosing the method of allocating costs to products (i.e. plantwide vs ABC) can
have an impact on the total manufacturing costs. T/F - ANSWER - False (Has impact
on product level not total manufacturing cost)
Machine set-up would be most likely be considered a unit-level cost. T/F - ANSWER -
False
Which of the following statements correctly distinguishes between financial and
managerial accounting? - ANSWER - Managerial accounting uses both financial and
non-financial measures of performance
If a frozen pizza plant is the cost object, classify each of the following costs as direct
or indirect, respectively: property insurance, plant supervisor wages, and janitorial
Questions and Answers 100%
Correct
If the finished goods inventory decreases between the beginning and the end of a
period, then the cost of goods manufactured for the period is larger than the cost of
goods sold. T/F - ANSWER - False (Finished Goods T-Account)
Predetermined overhead rates are based on actual cost and activity data. T/F -
ANSWER - False (Total ESTIMATED manufacturing overhead cost/Total ESTIMATED
cost driver)
Since actual MOH is $20,000 less than estimated MOH, then overhead must have
been over-allocated by $20,000. T/F - ANSWER - False (Compare applied to
estimated, not actual)
In activity-based costing, a separate activity rate (i.e., predetermined overhead
rate) is computed for each activity cost pool by dividing the estimated overhead
cost in the activity cost pool by the total expected activity for the activity cost pool.
T/F - ANSWER - True
Choosing the method of allocating costs to products (i.e. plantwide vs ABC) can
have an impact on the total manufacturing costs. T/F - ANSWER - False (Has impact
on product level not total manufacturing cost)
Machine set-up would be most likely be considered a unit-level cost. T/F - ANSWER -
False
Which of the following statements correctly distinguishes between financial and
managerial accounting? - ANSWER - Managerial accounting uses both financial and
non-financial measures of performance
If a frozen pizza plant is the cost object, classify each of the following costs as direct
or indirect, respectively: property insurance, plant supervisor wages, and janitorial
