ACC 255 Exam #1 questions correctly
answered to pass
Job order costing would not be used by a company that manufactures:
A. Custom Homes
B. Movie Pictures
C. Bridges
D. Refined Oil Products - correct answer ✔✔D. Refined Oil Products (A-C are high cost items)
Which of the following describes managerial accounting reports?
A. They are internal reports
B. They are general purpose reports designed for external users
C. They are issued as frequently as needed
D. All of the above are true
E. Only A and C are true - correct answer ✔✔E. Only A and C are true (Internal reports that are
used as frequently as needed)
Direct Labor is a(n):
A. Period Cost
B. Product Cost
C. Indirect Cost
D. Part of manufacturing overhead
E. None of the above - correct answer ✔✔B. Product Cost
In the WorldCom article, Betty:
, A. Did all accounting according to GAAP
B. Helped the company overstate revenues, which overstated reported income
C. Helped the company understate expenses, which overstated reported income - correct
answer ✔✔C. Helped the company understate expenses, which overstated reported income
For a manufacturing company, which of the following would be an example of a period cost?
A. Commissions paid to the salespersons
B. Depreciation on factory equipment
C. Wages paid to the assembly line workers
D. Indirect materials associated with making the products
E. Repair and maintenance costs on factory equipment - correct answer ✔✔A. Commissions
paid to the salespersons (B-E are all product costs)
A company that adopts ABC system should expect:
A. The costs for direct labor will be different
B. The costs for direct material will be different
C. The manufacturing overhead costs allocated to the different products will likely change
D. None of the above - correct answer ✔✔C. The manufacturing OH costs allocated to the
different products will likely change
A manufacturing company would account for advertising as:
A. Part of the manufacturing OH
B. An indirect manufacturing cost
C. A period expense
D. A manufacturing company normally does not have advertising - correct answer ✔✔C. A
period expense
answered to pass
Job order costing would not be used by a company that manufactures:
A. Custom Homes
B. Movie Pictures
C. Bridges
D. Refined Oil Products - correct answer ✔✔D. Refined Oil Products (A-C are high cost items)
Which of the following describes managerial accounting reports?
A. They are internal reports
B. They are general purpose reports designed for external users
C. They are issued as frequently as needed
D. All of the above are true
E. Only A and C are true - correct answer ✔✔E. Only A and C are true (Internal reports that are
used as frequently as needed)
Direct Labor is a(n):
A. Period Cost
B. Product Cost
C. Indirect Cost
D. Part of manufacturing overhead
E. None of the above - correct answer ✔✔B. Product Cost
In the WorldCom article, Betty:
, A. Did all accounting according to GAAP
B. Helped the company overstate revenues, which overstated reported income
C. Helped the company understate expenses, which overstated reported income - correct
answer ✔✔C. Helped the company understate expenses, which overstated reported income
For a manufacturing company, which of the following would be an example of a period cost?
A. Commissions paid to the salespersons
B. Depreciation on factory equipment
C. Wages paid to the assembly line workers
D. Indirect materials associated with making the products
E. Repair and maintenance costs on factory equipment - correct answer ✔✔A. Commissions
paid to the salespersons (B-E are all product costs)
A company that adopts ABC system should expect:
A. The costs for direct labor will be different
B. The costs for direct material will be different
C. The manufacturing overhead costs allocated to the different products will likely change
D. None of the above - correct answer ✔✔C. The manufacturing OH costs allocated to the
different products will likely change
A manufacturing company would account for advertising as:
A. Part of the manufacturing OH
B. An indirect manufacturing cost
C. A period expense
D. A manufacturing company normally does not have advertising - correct answer ✔✔C. A
period expense
