ACCOUNTING CRASH COURSE EXAM V4
2026 HIGH-YIELD ACCOUNTING PRINCIPLES
AND FINANCIAL STATEMENT ANALYSIS REVIEW
PACKAGE
◉ The cost of materials entering directly into the manufacturing
process is classified as:
Answer: Direct materials cost
◉ Which of the following is an example of a direct materials cost for
an automobile manufacturer?
Answer: Cost of interior upholstery
◉ If the cost of direct materials is a small portion of total production
cost, it may be classified as part of:
Answer: Factory overhead cost
◉ The cost of wages paid to employees directly involved in the
manufacturing process in converting materials into finished product
is classified as:
Answer: Direct labor cost
,◉ Which of the following is FALSE in regards to direct materials for
an auto manufacturer?
Answer: Small plastic clips to hold on door panels, because they
become part of the auto, must be accounted for as direct materials
◉ Which of the following is an example of direct labor cost for an
airplane manufacturer?
Answer: Cost of wages of assembly worker
◉ Which of the following is considered a part of factory overhead
cost?
Answer: Depreciation of factory buildings
◉ The following are all product costs EXCEPT:
Answer: Sales and administrative expenses
◉ Which of the following is an example of a factory overhead cost?
Answer: Factory heating and lighting cost
◉ Which of the following items would NOT be classified as a part of
factory overhead?
Answer: Direct labor used
, ◉ Which of the following items would NOT be classified as part of
factory overhead?
Answer: Direct labor used
◉ Compute factory overhead from the following costs:
Depreciation on Factory buildings: $20,000
Depreciation on office Equipment: 20,000
Direct materials used: 70,000
Indirect labor: 3,000
Answer: $23,000`
◉ Which of the following manufacturing costs is an indicated cost of
producing a product?
Answer: Oil lubricants used for factory machinery
◉ Which of the following are two main types of cost accounting
systems for manufacturing operations?
Answer: Job order cost and process cost system
◉ For which of the following businesses would the job order cost
system be appropriate?
Answer: Custom cabinet manufacturer
2026 HIGH-YIELD ACCOUNTING PRINCIPLES
AND FINANCIAL STATEMENT ANALYSIS REVIEW
PACKAGE
◉ The cost of materials entering directly into the manufacturing
process is classified as:
Answer: Direct materials cost
◉ Which of the following is an example of a direct materials cost for
an automobile manufacturer?
Answer: Cost of interior upholstery
◉ If the cost of direct materials is a small portion of total production
cost, it may be classified as part of:
Answer: Factory overhead cost
◉ The cost of wages paid to employees directly involved in the
manufacturing process in converting materials into finished product
is classified as:
Answer: Direct labor cost
,◉ Which of the following is FALSE in regards to direct materials for
an auto manufacturer?
Answer: Small plastic clips to hold on door panels, because they
become part of the auto, must be accounted for as direct materials
◉ Which of the following is an example of direct labor cost for an
airplane manufacturer?
Answer: Cost of wages of assembly worker
◉ Which of the following is considered a part of factory overhead
cost?
Answer: Depreciation of factory buildings
◉ The following are all product costs EXCEPT:
Answer: Sales and administrative expenses
◉ Which of the following is an example of a factory overhead cost?
Answer: Factory heating and lighting cost
◉ Which of the following items would NOT be classified as a part of
factory overhead?
Answer: Direct labor used
, ◉ Which of the following items would NOT be classified as part of
factory overhead?
Answer: Direct labor used
◉ Compute factory overhead from the following costs:
Depreciation on Factory buildings: $20,000
Depreciation on office Equipment: 20,000
Direct materials used: 70,000
Indirect labor: 3,000
Answer: $23,000`
◉ Which of the following manufacturing costs is an indicated cost of
producing a product?
Answer: Oil lubricants used for factory machinery
◉ Which of the following are two main types of cost accounting
systems for manufacturing operations?
Answer: Job order cost and process cost system
◉ For which of the following businesses would the job order cost
system be appropriate?
Answer: Custom cabinet manufacturer
