ACC 241 Exam1 ASU 128 Questions with Verified Answers
Unit‐level activities - CORRECT ANSWER activities occur every time a service is
performed or a product is made.
The costs of direct materials, direct labor, and machine maintenance are
examples of unit‐level activities.
Batch‐level activities - CORRECT ANSWER level activities are costs incurred every
time a group (batch) of units is produced or a series of steps is performed.
Purchase orders, machine setup, and quality tests are examples of batch‐level
activities.
Product‐line activities - CORRECT ANSWER are those activities that support an
entire product line but not necessarily each individual unit.
Examples of product‐line activities are engineering changes made in the assembly
line, product design changes, and warehousing and storage costs for each product
line.
Facility support activities - CORRECT ANSWER are necessary for development and
production to take place.
These costs are administrative in nature and include building depreciation,
property taxes, plant security, insurance, accounting, outside landscape and
maintenance, and plant management's and support staff's salaries.
1. Costs can be either direct or indirect, depending upon the cost object. -
CORRECT ANSWER T
2. Advertising is a product cost as long as it promotes specific products. -
CORRECT ANSWER f
,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 - CORRECT
ANSWER f
4. Predetermined overhead rates are based on actual cost and activity data. -
CORRECT ANSWER f
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. - CORRECT ANSWER t
6. Ethics deals with the moral quality, fitness, or propriety of a course of action
that may injure or benefit people. I
can make an ethical decision while taking the exam by:
a. Relying upon my own efforts in completing this exam
b. Using only approved resources (i.e. calculator vs cell phones) while taking this
exam
c. Refraining from looking at my neighbor's exam for answers
d. All of the above - CORRECT ANSWER d. All of the above
. Which of the following statements correctly distinguishes between financial and
managerial accounting?
a. Managerial accounting uses both financial and non-financial measures of
performance
b. Financial accounting is oriented toward the future
c. Financial accounting is primarily concerned with providing information for
internal users
d. Financial accounting is oriented toward the planning and control aspects of
management.
e. Managerial accounting focuses on the whole organization - CORRECT ANSWER
a. Managerial accounting uses both financial and non-financial measures of
performance
, Product costs differ from period expenses because
a. period expenses are not considered part of operating expenses for a
manufacturing
company
b. period expenses reduce reported income whereas product costs do not
c. product costs may appear on the balance sheet as assets
d. product costs are expenses for manufacturing companies and period expenses
are expenses
for service organizations. - CORRECT ANSWER c. product costs may appear on the
balance sheet as assets
Which of the following is not a characteristic of job-order costing?
a. Wide variety of distinct products
b. Unit cost is computed by dividing process costs of the period by the units
produced in the
period
c. Unit cost computed by dividing total job costs by units produced on that job
d. Costs accumulated by job
e. Typically, the cost of one job is different from that of another job - CORRECT
ANSWER b. Unit cost is computed by dividing process costs of the period by the
units produced in the
Dallas, Inc. an appliance manufacturer, is developing a new line of ovens that uses
controlled-laser technology.
The research and testing costs associated with the new ovens is said to arise from
a:
a. unit-level activity.
b. batch-level activity
c. product-level activity
d. facility-level activity
e. competitive-level activity - CORRECT ANSWER c. product-level activity
Volume-based (traditional, plant-wide)) cost systems tend to
a. Under-cost low-volume products and under-cost high-volume products
Unit‐level activities - CORRECT ANSWER activities occur every time a service is
performed or a product is made.
The costs of direct materials, direct labor, and machine maintenance are
examples of unit‐level activities.
Batch‐level activities - CORRECT ANSWER level activities are costs incurred every
time a group (batch) of units is produced or a series of steps is performed.
Purchase orders, machine setup, and quality tests are examples of batch‐level
activities.
Product‐line activities - CORRECT ANSWER are those activities that support an
entire product line but not necessarily each individual unit.
Examples of product‐line activities are engineering changes made in the assembly
line, product design changes, and warehousing and storage costs for each product
line.
Facility support activities - CORRECT ANSWER are necessary for development and
production to take place.
These costs are administrative in nature and include building depreciation,
property taxes, plant security, insurance, accounting, outside landscape and
maintenance, and plant management's and support staff's salaries.
1. Costs can be either direct or indirect, depending upon the cost object. -
CORRECT ANSWER T
2. Advertising is a product cost as long as it promotes specific products. -
CORRECT ANSWER f
,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 - CORRECT
ANSWER f
4. Predetermined overhead rates are based on actual cost and activity data. -
CORRECT ANSWER f
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. - CORRECT ANSWER t
6. Ethics deals with the moral quality, fitness, or propriety of a course of action
that may injure or benefit people. I
can make an ethical decision while taking the exam by:
a. Relying upon my own efforts in completing this exam
b. Using only approved resources (i.e. calculator vs cell phones) while taking this
exam
c. Refraining from looking at my neighbor's exam for answers
d. All of the above - CORRECT ANSWER d. All of the above
. Which of the following statements correctly distinguishes between financial and
managerial accounting?
a. Managerial accounting uses both financial and non-financial measures of
performance
b. Financial accounting is oriented toward the future
c. Financial accounting is primarily concerned with providing information for
internal users
d. Financial accounting is oriented toward the planning and control aspects of
management.
e. Managerial accounting focuses on the whole organization - CORRECT ANSWER
a. Managerial accounting uses both financial and non-financial measures of
performance
, Product costs differ from period expenses because
a. period expenses are not considered part of operating expenses for a
manufacturing
company
b. period expenses reduce reported income whereas product costs do not
c. product costs may appear on the balance sheet as assets
d. product costs are expenses for manufacturing companies and period expenses
are expenses
for service organizations. - CORRECT ANSWER c. product costs may appear on the
balance sheet as assets
Which of the following is not a characteristic of job-order costing?
a. Wide variety of distinct products
b. Unit cost is computed by dividing process costs of the period by the units
produced in the
period
c. Unit cost computed by dividing total job costs by units produced on that job
d. Costs accumulated by job
e. Typically, the cost of one job is different from that of another job - CORRECT
ANSWER b. Unit cost is computed by dividing process costs of the period by the
units produced in the
Dallas, Inc. an appliance manufacturer, is developing a new line of ovens that uses
controlled-laser technology.
The research and testing costs associated with the new ovens is said to arise from
a:
a. unit-level activity.
b. batch-level activity
c. product-level activity
d. facility-level activity
e. competitive-level activity - CORRECT ANSWER c. product-level activity
Volume-based (traditional, plant-wide)) cost systems tend to
a. Under-cost low-volume products and under-cost high-volume products
