ACC 252 EXAM 1 QUESTIONS AND
ANSWERS GRADED A+ 2026
Direct costs - ANS costs that can be easily traced and conveniently traced to a unit of product
or other cost object (direct materials and direct labor).
Indirect costs - ANS costs that cannot be easily and conveniently traced to a unit of product
or other cost object (manufacturing overhead)
Direct materials - ANS raw materials that become an integral part of the product and that can
be conveniently traced directly to it (a radio installed in an automobile).
Direct labor - ANS Those labor costs that can be easily traced to individuals units of products
(wages paid to automobile).
Manufacturing Overhead - ANS Manufacturing costs that cannot be easily traced directly to
specific units produced (indirect materials and indirect labor).
Nonmanufacturing costs - ANS Selling costs and administrative costs
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
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, Selling costs - ANS Costs necessary to secure the order and deliver the product. Selling costs
can be either direct or indirect costs.
Administrative costs - ANS All executive, organizational, and clerical costs. Administrative
costs can be either direct or indirect costs.
Product costs - ANS Direct materials, direct labor, and manufacturing overhead (balance
sheet and income statement).
Period costs - ANS All selling costs and administrative costs (income statement).
Manufacturing costs - ANS Prime costs and conversion costs.
Prime cost - ANS Direct materials and direct labor.
Conversion cost - ANS Direct labor and manufacturing overhead.
Cost behavior - ANS Refer to how cost will react to changes in the level of activity (variable
costs, fixed costs, mixed costs).
Variable costs - ANS A cost that varies, in total, in direct proportion to changes in the level of
activity (total texting bill).
Variable Cost Per Unit - ANS Variable cost per unit is constant.
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
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ANSWERS GRADED A+ 2026
Direct costs - ANS costs that can be easily traced and conveniently traced to a unit of product
or other cost object (direct materials and direct labor).
Indirect costs - ANS costs that cannot be easily and conveniently traced to a unit of product
or other cost object (manufacturing overhead)
Direct materials - ANS raw materials that become an integral part of the product and that can
be conveniently traced directly to it (a radio installed in an automobile).
Direct labor - ANS Those labor costs that can be easily traced to individuals units of products
(wages paid to automobile).
Manufacturing Overhead - ANS Manufacturing costs that cannot be easily traced directly to
specific units produced (indirect materials and indirect labor).
Nonmanufacturing costs - ANS Selling costs and administrative costs
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
, Selling costs - ANS Costs necessary to secure the order and deliver the product. Selling costs
can be either direct or indirect costs.
Administrative costs - ANS All executive, organizational, and clerical costs. Administrative
costs can be either direct or indirect costs.
Product costs - ANS Direct materials, direct labor, and manufacturing overhead (balance
sheet and income statement).
Period costs - ANS All selling costs and administrative costs (income statement).
Manufacturing costs - ANS Prime costs and conversion costs.
Prime cost - ANS Direct materials and direct labor.
Conversion cost - ANS Direct labor and manufacturing overhead.
Cost behavior - ANS Refer to how cost will react to changes in the level of activity (variable
costs, fixed costs, mixed costs).
Variable costs - ANS A cost that varies, in total, in direct proportion to changes in the level of
activity (total texting bill).
Variable Cost Per Unit - ANS Variable cost per unit is constant.
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
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