ACC 241 Exam 1 Practice
Questions Chapters 1,2,3,4,6 with
All Correct Answers
Planning, directing, and controlling are a manager's three primary responsibilities -
ANSWER - True
In a manufacturing firm, manufacturing costs and product costs are the same -
ANSWER - True
If the finished goods inventory decreases between the beginning and the end of a
period, then the cost of goods manufactured for the period is larger than the cost of
goods sold - ANSWER - False
A plantwide overhead is calculated by dividing the estimated total manufacturing
overhead costs for the year by estimated total amount of the allocation base for the
year - ANSWER - True
Claire Corp. allocates (applies) Overhead based on direct labor hours. Here is
selected Data from the Jacob Corp.:
est. manufacturing overhead (MOH) 500,000
actual manufacturing overhead (MOH) 480,000
estimated DLH 50,000
actual DLH 55,000
since actual MOH is 20,000 less than est. MOH, then overhead must have been
over-allocated by 20,000 - ANSWER - False
Applied Overhead = $500,000 Est MOH / 50,000 Est DLH = $10/DLH PDOR
$10 PDOR x 55,000 actual DLH = $550,000 Applied
Actual MOH - Applied MOH = $480,000 - $550,000 = $70,000 OVER-applied
, Choosing the method of allocating costs to products (ie plantwide vs ABC) can have
an impact on the total manufacturing costs - ANSWER - False
Direct Costs don't change, MOH potentially change at individual product level but
not overall
Traditional overhead allocation methods that use unit-based cost drivers are never
accurate - ANSWER - False
Cost distortion occurs when some products are overcosted while other products are
undercosted by the cost allocation system - ANSWER - True
As output decreases fixed costs per unit will also decrease - ANSWER - False
The relevant range is the range of activity for which the assumed cost relationships
are valid - ANSWER - True
Which of the following statements correctly distinguishes between financial and
managerial accounting?
Financial accounting is oriented toward the future
Managerial accounting focuses on the whole organization
Financial accounting is primarily concerned with providing information for internal
users
Financial accounting is oriented toward the planning and control aspects of
management
Managerial accounting uses both financial and non-financial measures of
performance - ANSWER - Managerial accounting uses both financial and non-
financial measures of performance
Questions Chapters 1,2,3,4,6 with
All Correct Answers
Planning, directing, and controlling are a manager's three primary responsibilities -
ANSWER - True
In a manufacturing firm, manufacturing costs and product costs are the same -
ANSWER - True
If the finished goods inventory decreases between the beginning and the end of a
period, then the cost of goods manufactured for the period is larger than the cost of
goods sold - ANSWER - False
A plantwide overhead is calculated by dividing the estimated total manufacturing
overhead costs for the year by estimated total amount of the allocation base for the
year - ANSWER - True
Claire Corp. allocates (applies) Overhead based on direct labor hours. Here is
selected Data from the Jacob Corp.:
est. manufacturing overhead (MOH) 500,000
actual manufacturing overhead (MOH) 480,000
estimated DLH 50,000
actual DLH 55,000
since actual MOH is 20,000 less than est. MOH, then overhead must have been
over-allocated by 20,000 - ANSWER - False
Applied Overhead = $500,000 Est MOH / 50,000 Est DLH = $10/DLH PDOR
$10 PDOR x 55,000 actual DLH = $550,000 Applied
Actual MOH - Applied MOH = $480,000 - $550,000 = $70,000 OVER-applied
, Choosing the method of allocating costs to products (ie plantwide vs ABC) can have
an impact on the total manufacturing costs - ANSWER - False
Direct Costs don't change, MOH potentially change at individual product level but
not overall
Traditional overhead allocation methods that use unit-based cost drivers are never
accurate - ANSWER - False
Cost distortion occurs when some products are overcosted while other products are
undercosted by the cost allocation system - ANSWER - True
As output decreases fixed costs per unit will also decrease - ANSWER - False
The relevant range is the range of activity for which the assumed cost relationships
are valid - ANSWER - True
Which of the following statements correctly distinguishes between financial and
managerial accounting?
Financial accounting is oriented toward the future
Managerial accounting focuses on the whole organization
Financial accounting is primarily concerned with providing information for internal
users
Financial accounting is oriented toward the planning and control aspects of
management
Managerial accounting uses both financial and non-financial measures of
performance - ANSWER - Managerial accounting uses both financial and non-
financial measures of performance
