2025/2026 ACCT526: Midterm Test
With Correct Questions and
Answers
Costs of completed but unsold products would be found in which account? -correct
answerFinished goods inventory.
Cost of goods sold: -correct answeris the total product cost of the units sold during a
period.
A product currently requires 8 raw materials moves. By changing the plant layout, the
number of moves can be reduced to 3. The cost per move is $50. Calculate the
reduction in the nonvalue-added cost of the raw materials moving acvitity. -correct
answer$250 (Reduction in nonvalue-added cost of raw materials moving activity =
(number of moves prior to change in plant layout - number of moves after change in
plant layout) x cost per move; (8 moves - 3 moves) x $50 = $250).
An opportunity cost is: -correct answerthe benefit given up or sacrificed when one
alternative is chosen over another.
Accounts receivable arising from sales to customers amounted to $120,000 and
$75,000 at the beginning and end of the year respectively. Net income reported on the
income statement for the year was $170,000. Exclusive of the effect of other
With Correct Questions and
Answers
Costs of completed but unsold products would be found in which account? -correct
answerFinished goods inventory.
Cost of goods sold: -correct answeris the total product cost of the units sold during a
period.
A product currently requires 8 raw materials moves. By changing the plant layout, the
number of moves can be reduced to 3. The cost per move is $50. Calculate the
reduction in the nonvalue-added cost of the raw materials moving acvitity. -correct
answer$250 (Reduction in nonvalue-added cost of raw materials moving activity =
(number of moves prior to change in plant layout - number of moves after change in
plant layout) x cost per move; (8 moves - 3 moves) x $50 = $250).
An opportunity cost is: -correct answerthe benefit given up or sacrificed when one
alternative is chosen over another.
Accounts receivable arising from sales to customers amounted to $120,000 and
$75,000 at the beginning and end of the year respectively. Net income reported on the
income statement for the year was $170,000. Exclusive of the effect of other
