ACC 222 EXAM 1 PRACTICE QUESTIONS & ANSWERS
Which of the following in not one of the three major types of product costs in a
manufacturing company?
a) direct labor
b) manufacturing overhead
c) research & development
d) direct materials - Answer -c) research & development
Product costs are expensed
a) when the product is finished
b) when the product is sold
c) when the unit cost of the product is calculated
d) at the end of the period when inventory is valued - Answer -c) when the product is
sold
Which of the following users is NOT an intended user of managerial accounting
information
a) creditors (lenders)
b) sales managers
c) production supervisors
d) distribution managers - Answer -a) creditors (lenders)
The cost per unit or unit cost...
a) includes period costs
b) equals total conversion cost divided by the number of units produced
c) equals total prime cost divided by the number of units produced
d) equals total product cost divided by the number of units produced - Answer -d)
equals total product cost divided by the number of units produced
Which of the following costs should be included in manufacturing overhead (MOH)?
a) wages of machine workers at Toyota who install transmissions in Toyota Sequoias
b) electricity for the warehouse where finished goods are produced
c) advertising that supports the sales of finished goods
d) both A & B - Answer -b) electricity for the warehouse where finished goods are
produced
Variable costs are costs that
a) decrease in total as output increases within the relevant range
Which of the following in not one of the three major types of product costs in a
manufacturing company?
a) direct labor
b) manufacturing overhead
c) research & development
d) direct materials - Answer -c) research & development
Product costs are expensed
a) when the product is finished
b) when the product is sold
c) when the unit cost of the product is calculated
d) at the end of the period when inventory is valued - Answer -c) when the product is
sold
Which of the following users is NOT an intended user of managerial accounting
information
a) creditors (lenders)
b) sales managers
c) production supervisors
d) distribution managers - Answer -a) creditors (lenders)
The cost per unit or unit cost...
a) includes period costs
b) equals total conversion cost divided by the number of units produced
c) equals total prime cost divided by the number of units produced
d) equals total product cost divided by the number of units produced - Answer -d)
equals total product cost divided by the number of units produced
Which of the following costs should be included in manufacturing overhead (MOH)?
a) wages of machine workers at Toyota who install transmissions in Toyota Sequoias
b) electricity for the warehouse where finished goods are produced
c) advertising that supports the sales of finished goods
d) both A & B - Answer -b) electricity for the warehouse where finished goods are
produced
Variable costs are costs that
a) decrease in total as output increases within the relevant range
