4 SETS ACCT505 MIDTERM EXAM

4 SETS ACCT505 MIDTERM EXAM ALL AC505 Week 4 Midterm SET 1 QUESTION 1: Wages paid to a timekeeper in a factory are a: • Prime Cost YES.....Conversion Cost NO • Prime Cost YES.....Conversion Cost YES • Prime Cost NO....Conversion Cost NO • Prime Cost NO.....Conversion Cost YES QUESTION 2: A cost incurred in the past that is not relevant to any current decision is classified as a(n): • period cost. • opportunity cost. • sunk cost. • differential cost. QUESTION 3: Inventoriable costs are also known as: • variable costs • conversion costs • product costs • fixed costs QUESTION 4: When the activity level is expected to decline within the relevant range, what effects would be anticipated with respect to each of the following? • Fixed Costs per Unit Increase and Variable Costs per Unit Increase • Fixed Costs per Unit Increase and Variable Costs per Unit do not change • Fixed Costs per Unit do not change and Variable Costs per Unit do not change • Fixed Costs per Unit do not change and Variable Costs per Unit Increase QUESTION 5: When manufacturing overhead is applied to production, it is added to: • the Cost of Goods Sold account • the Raw Materials account • the Work in Process account • the Finished Goods inventory account QUESTION 6: Which of the following statements about process costing system is incorrect?