ACC 241 Exam 1 Question and
answers verified to pass 2025/2026
Planning, directing, and controlling are a manager's three primary responsibilities - correct answer
✔True
In the manufacturing firm, manufacturing costs and product costs are the same - correct answer ✔True
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 ✔False
A plant-wide overhead rate is calculated by dividing the estimated total manufacturing overhead costs
for the year by estimated total amount of the allocation base for the year - correct answer ✔True
Claire Corporation allocates (applies) Overhead based on direct labor hours. Here is selected data from
the Jacob Corporation:
Estimated MOH = $500,000
Actual MOH = $480,000
Estimated Direct Labor hours = 50,000
Actual DL hours = 55,000
Since actual MOH is $20,000 less than estimated MOH, then overhead must have been over-allocated by
$20,000 - correct answer ✔False
-----
Applied Overhead = $500,000 Est. MOH / 50,000 Est. DLH = $10/DLH (PDOR)
$10 PDOR * 55,000 actual DLH = $550,000 Applied
Actual MOH - Applied MOH
$480,000 - $550,000
, = $70,000 OVER-applied
Choosing the method of allocating costs to products (i.e., plant-wide vs. ABC) can have an impact on the
total manufacturing costs - correct answer ✔False
-----
Direct Costs do not change, MOH potentially change at individual product level but not overall
Traditional overhead allocation methods the use unit-based cost drivers are never accurate - correct
answer ✔False
Cost distortion occurs when products are overcosted while other products are undercoated by the cost
allocation system - correct answer ✔True
As output decreases, fixed costs per unit will also decrease - correct answer ✔False
The relevant range is the range of activity for which the assumed cost relationships are valid - correct
answer ✔True
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. Managerial accounting focuses on the whole organization
D. Financial accounting is primarily concerned with providing information for internal users
E. Financial accounting is oriented toward the planning and control aspects of management - correct
answer ✔A. Managerial accounting uses both financial and non-financial measures of performance
If a frozen pizza plant (factory) is the cost object, classify each of the following costs as direct or indirect,
respectively: property insurance, plant supervisor wages, and janitorial supplies
answers verified to pass 2025/2026
Planning, directing, and controlling are a manager's three primary responsibilities - correct answer
✔True
In the manufacturing firm, manufacturing costs and product costs are the same - correct answer ✔True
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 ✔False
A plant-wide overhead rate is calculated by dividing the estimated total manufacturing overhead costs
for the year by estimated total amount of the allocation base for the year - correct answer ✔True
Claire Corporation allocates (applies) Overhead based on direct labor hours. Here is selected data from
the Jacob Corporation:
Estimated MOH = $500,000
Actual MOH = $480,000
Estimated Direct Labor hours = 50,000
Actual DL hours = 55,000
Since actual MOH is $20,000 less than estimated MOH, then overhead must have been over-allocated by
$20,000 - correct answer ✔False
-----
Applied Overhead = $500,000 Est. MOH / 50,000 Est. DLH = $10/DLH (PDOR)
$10 PDOR * 55,000 actual DLH = $550,000 Applied
Actual MOH - Applied MOH
$480,000 - $550,000
, = $70,000 OVER-applied
Choosing the method of allocating costs to products (i.e., plant-wide vs. ABC) can have an impact on the
total manufacturing costs - correct answer ✔False
-----
Direct Costs do not change, MOH potentially change at individual product level but not overall
Traditional overhead allocation methods the use unit-based cost drivers are never accurate - correct
answer ✔False
Cost distortion occurs when products are overcosted while other products are undercoated by the cost
allocation system - correct answer ✔True
As output decreases, fixed costs per unit will also decrease - correct answer ✔False
The relevant range is the range of activity for which the assumed cost relationships are valid - correct
answer ✔True
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. Managerial accounting focuses on the whole organization
D. Financial accounting is primarily concerned with providing information for internal users
E. Financial accounting is oriented toward the planning and control aspects of management - correct
answer ✔A. Managerial accounting uses both financial and non-financial measures of performance
If a frozen pizza plant (factory) is the cost object, classify each of the following costs as direct or indirect,
respectively: property insurance, plant supervisor wages, and janitorial supplies
