Page | 1
ACC 252 EXAM #1 2026 LATEST
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
1) The cost of fire insurance for a manufacturing plant is generally
considered to be a:
A. product cost.
B. period cost.
C. variable cost.
D. all of the above. - correct answer -A. product cost.
2) In computing its predetermined overhead rate, Marple
Company inadvertently left its indirect labor costs out of the
computation. This oversight will cause:
A. Manufacturing Overhead to be overapplied.
B. the Cost of Goods Manufactured to be understated.
C. the debits to the Manufacturing Overhead account to be
understated.
D. the ending balance in Work in Process to be overstated. -
correct answer -B. the Cost of Goods Manufactured to be
understated.
ACC 252 EXAM #1 2026 LATEST
QUESTIONS AND ANSWERS| ACE
YOUR GRADES.
1) The cost of fire insurance for a manufacturing plant is generally
considered to be a:
A. product cost.
B. period cost.
C. variable cost.
D. all of the above. - correct answer -A. product cost.
2) In computing its predetermined overhead rate, Marple
Company inadvertently left its indirect labor costs out of the
computation. This oversight will cause:
A. Manufacturing Overhead to be overapplied.
B. the Cost of Goods Manufactured to be understated.
C. the debits to the Manufacturing Overhead account to be
understated.
D. the ending balance in Work in Process to be overstated. -
correct answer -B. the Cost of Goods Manufactured to be
understated.
