ACC 241 Exam #1 Multiple choice(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 - ANSWERSFalse (Finished Goods T-Account)
Predetermined overhead rates are based on actual cost and activity data. T/F -
ANSWERSFalse (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 - ANSWERSFalse (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 -
ANSWERSTrue
Choosing the method of allocating costs to products (i.e. plantwide vs ABC) can have
an impact on the total manufacturing costs. T/F - ANSWERSFalse (Has impact on
product level not total manufacturing cost)
Machine set-up would be most likely be considered a unit-level cost. T/F -
ANSWERSFalse
Which of the following statements correctly distinguishes between financial and
managerial accounting? - ANSWERSManagerial 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
supplies. - ANSWERSAll are direct, because cost object is the frozen pizza PLANT
(factory)
Product (inventoriable) costs differ from period expenses because? -
ANSWERSProduct costs may appear on the balance sheet as assets
Products and their costs flow through a production facility in the following order: -
ANSWERSRaw materials, work-in-process, finished goods, cost of goods sold
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 - ANSWERSFalse (Finished Goods T-Account)
Predetermined overhead rates are based on actual cost and activity data. T/F -
ANSWERSFalse (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 - ANSWERSFalse (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 -
ANSWERSTrue
Choosing the method of allocating costs to products (i.e. plantwide vs ABC) can have
an impact on the total manufacturing costs. T/F - ANSWERSFalse (Has impact on
product level not total manufacturing cost)
Machine set-up would be most likely be considered a unit-level cost. T/F -
ANSWERSFalse
Which of the following statements correctly distinguishes between financial and
managerial accounting? - ANSWERSManagerial 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
supplies. - ANSWERSAll are direct, because cost object is the frozen pizza PLANT
(factory)
Product (inventoriable) costs differ from period expenses because? -
ANSWERSProduct costs may appear on the balance sheet as assets
Products and their costs flow through a production facility in the following order: -
ANSWERSRaw materials, work-in-process, finished goods, cost of goods sold
