Exam 1 ACC 241 ASU 2024 Questions &
Answers 100% Correct!!
Unit‐level activities - ANSWERSactivities occur every time a service is performed or a
product is made.
The costs of direct materials, direct labor, and machine maintenance are examples of
unit‐level activities.
Batch‐level activities - ANSWERSlevel activities are costs incurred every time a group
(batch) of units is produced or a series of steps is performed.
Purchase orders, machine setup, and quality tests are examples of batch‐level
activities.
Product‐line activities - ANSWERSare those activities that support an entire product line
but not necessarily each individual unit.
Examples of product‐line activities are engineering changes made in the assembly line,
product design changes, and warehousing and storage costs for each product line.
Facility support activities - ANSWERSare necessary for development and production to
take place.
These costs are administrative in nature and include building depreciation, property
taxes, plant security, insurance, accounting, outside landscape and maintenance, and
plant management's and support staff's salaries.
1. Costs can be either direct or indirect, depending upon the cost object. - ANSWERST
2. Advertising is a product cost as long as it promotes specific products. - ANSWERSf
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 - ANSWERSf
4. Predetermined overhead rates are based on actual cost and activity data. -
ANSWERSf
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. - ANSWERSt
6. Ethics deals with the moral quality, fitness, or propriety of a course of action that may
injure or benefit people. I
can make an ethical decision while taking the exam by:
a. Relying upon my own efforts in completing this exam
b. Using only approved resources (i.e. calculator vs cell phones) while taking this exam
c. Refraining from looking at my neighbor's exam for answers
d. All of the above - ANSWERSd. All of the above
. 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. Financial accounting is primarily concerned with providing information for internal
users
d. Financial accounting is oriented toward the planning and control aspects of
management.
e. Managerial accounting focuses on the whole organization - ANSWERSa. Managerial
accounting uses both financial and non-financial measures of performance
Product costs differ from period expenses because
a. period expenses are not considered part of operating expenses for a manufacturing
company
b. period expenses reduce reported income whereas product costs do not
c. product costs may appear on the balance sheet as assets
d. product costs are expenses for manufacturing companies and period expenses are
expenses
for service organizations. - ANSWERSc. product costs may appear on the balance
sheet as assets
Which of the following is not a characteristic of job-order costing?
a. Wide variety of distinct products
b. Unit cost is computed by dividing process costs of the period by the units produced in
the
period
c. Unit cost computed by dividing total job costs by units produced on that job
d. Costs accumulated by job
e. Typically, the cost of one job is different from that of another job - ANSWERSb. Unit
cost is computed by dividing process costs of the period by the units produced in the
Answers 100% Correct!!
Unit‐level activities - ANSWERSactivities occur every time a service is performed or a
product is made.
The costs of direct materials, direct labor, and machine maintenance are examples of
unit‐level activities.
Batch‐level activities - ANSWERSlevel activities are costs incurred every time a group
(batch) of units is produced or a series of steps is performed.
Purchase orders, machine setup, and quality tests are examples of batch‐level
activities.
Product‐line activities - ANSWERSare those activities that support an entire product line
but not necessarily each individual unit.
Examples of product‐line activities are engineering changes made in the assembly line,
product design changes, and warehousing and storage costs for each product line.
Facility support activities - ANSWERSare necessary for development and production to
take place.
These costs are administrative in nature and include building depreciation, property
taxes, plant security, insurance, accounting, outside landscape and maintenance, and
plant management's and support staff's salaries.
1. Costs can be either direct or indirect, depending upon the cost object. - ANSWERST
2. Advertising is a product cost as long as it promotes specific products. - ANSWERSf
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 - ANSWERSf
4. Predetermined overhead rates are based on actual cost and activity data. -
ANSWERSf
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. - ANSWERSt
6. Ethics deals with the moral quality, fitness, or propriety of a course of action that may
injure or benefit people. I
can make an ethical decision while taking the exam by:
a. Relying upon my own efforts in completing this exam
b. Using only approved resources (i.e. calculator vs cell phones) while taking this exam
c. Refraining from looking at my neighbor's exam for answers
d. All of the above - ANSWERSd. All of the above
. 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. Financial accounting is primarily concerned with providing information for internal
users
d. Financial accounting is oriented toward the planning and control aspects of
management.
e. Managerial accounting focuses on the whole organization - ANSWERSa. Managerial
accounting uses both financial and non-financial measures of performance
Product costs differ from period expenses because
a. period expenses are not considered part of operating expenses for a manufacturing
company
b. period expenses reduce reported income whereas product costs do not
c. product costs may appear on the balance sheet as assets
d. product costs are expenses for manufacturing companies and period expenses are
expenses
for service organizations. - ANSWERSc. product costs may appear on the balance
sheet as assets
Which of the following is not a characteristic of job-order costing?
a. Wide variety of distinct products
b. Unit cost is computed by dividing process costs of the period by the units produced in
the
period
c. Unit cost computed by dividing total job costs by units produced on that job
d. Costs accumulated by job
e. Typically, the cost of one job is different from that of another job - ANSWERSb. Unit
cost is computed by dividing process costs of the period by the units produced in the
