BUS 303 Final Exam: Multiple Choice
Questions
Chapter 2: Chapter 2
1. Which major activities do managers carry out? D) All of the above.
2. Which one of the following costs would not be considered an indirect cost of serving
a particular customer at a delicatessen? C) The cost of the bread used to make the sub
sandwich that is ordered.
3. Usually, the wages of the janitorial staff in a factory would: C) be classified as
indirect labor and included in manufacturing overhead.
4. If the cost of goods manufactured is greater than the cost of goods sold, then: B)
finished goods inventory has increased during the period.
5. Within the relevant range: D) variable costs per unit will remain constant and fixed
costs per unit will fluctuate.
6. An opportunity cost is: B) the benefit forgone when one alternative is selected rather
than another.
Chapter 3: Chapter 3
7. If overhead is applied on the basis of direct labor hours, the predetermined
overhead rate per direct labor hour will be: A) $7.00.
8. What predetermined overhead rates would be used in the Mixing and Assembly
Departments, respectively? D) $5.00 and 200%
Questions
Chapter 2: Chapter 2
1. Which major activities do managers carry out? D) All of the above.
2. Which one of the following costs would not be considered an indirect cost of serving
a particular customer at a delicatessen? C) The cost of the bread used to make the sub
sandwich that is ordered.
3. Usually, the wages of the janitorial staff in a factory would: C) be classified as
indirect labor and included in manufacturing overhead.
4. If the cost of goods manufactured is greater than the cost of goods sold, then: B)
finished goods inventory has increased during the period.
5. Within the relevant range: D) variable costs per unit will remain constant and fixed
costs per unit will fluctuate.
6. An opportunity cost is: B) the benefit forgone when one alternative is selected rather
than another.
Chapter 3: Chapter 3
7. If overhead is applied on the basis of direct labor hours, the predetermined
overhead rate per direct labor hour will be: A) $7.00.
8. What predetermined overhead rates would be used in the Mixing and Assembly
Departments, respectively? D) $5.00 and 200%
