ACCT 201B EXAM 1 Study Guide
Questions and All Actual Answers 2026-
2027 Updated.
Which one is not one of the three major elements of product costs?
A) direct materials
B) variable costs
C) direct labor
D) manufacturing overhead - Answer B) variable costs
Which cost is not a period cost?
A) the salary of the company president's secretary
B) janitorial service for factory offices
C) depreciation of an office copy machine
D) sales commissions
E) the cost of a general accounting office - Answer B) janitorial service for factory offices
The variable cost per unit
A) increases as volume increases
B) decreases as volume increases
C) remains the same at different volume levels
D) increases in total as volume increases
E) none of the above - Answer C) remains the same at different volume levels
Which of the following describes the behavior of fixed costs?
A) the unit cost increases when the activity level increases
B) the total cost changes with the activity level
C) the unit cost stays the same over changing levels of activity
D) the total cost stays the same when activity declines - Answer D) the total cost stays the
same when activity declines
, Calculation for Conversion Costs - Answer Direct Labor + MO
Which cost is not a manufacturing overhead?
A) magazines in the factory lunch room
B) gardner for factory lawn
C) depreciation on factory forklift
D) maintenance on factory machines
E) factory assembly worker - Answer E) factory assembly worker
What impact does an increase in volume have on? - Answer Unit Var Cost and Total Fixed Cost
= None
Unit Fixed Cost = Lowers
Total Variable Cost = Increases
Which of the following companies would be most likely to use a job cost system rather than a
process posting system?
A) steel manufacturer
B) legal firm
C) beverage bottler
D) paint manufacturer - Answer B
Whenever direct material, direct labor, and manufacturing overhead are recorded on a job cost
record, an associated journal entry is made to debit which of the following accounts?
A) cost of goods sold
B) work in process inventory
C) sales revenue
D) finished goods inventory - Answer B
In a job costing system, all of the following statements about materials are correct EXCEPT for
which of the following?
A) all materials are always classified as direct materials
B) the job cost record for a job will contain all direct material used for that particular job
Questions and All Actual Answers 2026-
2027 Updated.
Which one is not one of the three major elements of product costs?
A) direct materials
B) variable costs
C) direct labor
D) manufacturing overhead - Answer B) variable costs
Which cost is not a period cost?
A) the salary of the company president's secretary
B) janitorial service for factory offices
C) depreciation of an office copy machine
D) sales commissions
E) the cost of a general accounting office - Answer B) janitorial service for factory offices
The variable cost per unit
A) increases as volume increases
B) decreases as volume increases
C) remains the same at different volume levels
D) increases in total as volume increases
E) none of the above - Answer C) remains the same at different volume levels
Which of the following describes the behavior of fixed costs?
A) the unit cost increases when the activity level increases
B) the total cost changes with the activity level
C) the unit cost stays the same over changing levels of activity
D) the total cost stays the same when activity declines - Answer D) the total cost stays the
same when activity declines
, Calculation for Conversion Costs - Answer Direct Labor + MO
Which cost is not a manufacturing overhead?
A) magazines in the factory lunch room
B) gardner for factory lawn
C) depreciation on factory forklift
D) maintenance on factory machines
E) factory assembly worker - Answer E) factory assembly worker
What impact does an increase in volume have on? - Answer Unit Var Cost and Total Fixed Cost
= None
Unit Fixed Cost = Lowers
Total Variable Cost = Increases
Which of the following companies would be most likely to use a job cost system rather than a
process posting system?
A) steel manufacturer
B) legal firm
C) beverage bottler
D) paint manufacturer - Answer B
Whenever direct material, direct labor, and manufacturing overhead are recorded on a job cost
record, an associated journal entry is made to debit which of the following accounts?
A) cost of goods sold
B) work in process inventory
C) sales revenue
D) finished goods inventory - Answer B
In a job costing system, all of the following statements about materials are correct EXCEPT for
which of the following?
A) all materials are always classified as direct materials
B) the job cost record for a job will contain all direct material used for that particular job
