ACC-350 Test 1 Questions with complete
solution 2025
Which of the following correctly describes the accounting for advertising
costs? - correct answer ✔advertising costs are period costs and are
expensed as incurred
Which of the following is true of product costs? - correct answer ✔they are
first recorded in an inventory account
Which of the following is a product cost? - correct answer ✔depreciation on
production equipment
Which of the following is a philosophy designed to integrate all organizational
areas in order to provide customers with superior products and services, while
meeting organizational goals throughout the value chain? - correct answer
✔Total Quality Management (TQM)
Which of the following statements is true of the flow of product and period
costs for a manufacturer? - correct answer ✔the cost of the finished goods
that the manufacturer sells becomes its cost of goods sold on the income
statement
Management's accountability to its suppliers and vendors is to - correct
answer ✔make timely payments and comply with contract terms
which of the following is a part of manufacturing overhead? - correct answer
✔factory insurance
, For decision making purposes, ______ costs are often divided into prime
costs and conversion costs - correct answer ✔product costs
Which of the following is the primary focus of financial accounting? - correct
answer ✔provided summarized information on operational results to investors
and creditors
one of the primary activities of Rex, Inc is to purchase hats from Viva Inc. in
Texas and sell them to its customers in Washington for a profit. It is likely that
Rex is a - correct answer ✔merchandising company
Which of the following would be considered a product cost for a manufacturing
company? - correct answer ✔depreciation on manufacturing equipment
Managerial accounting can be used to calculate costs for service and
merchandising companies - correct answer ✔true
Financial accounting - correct answer ✔financial statements are used by
investors, creditors, and government authorities
o Helps investors make investment decisions
o Reports must follow Generally Accepted Accounting Principles (GAAP)
o Reports audited annually by independent certified public accountants
managerial accounting - correct answer ✔reports are generated for planning.
One planning tool is the budget. Controlling involves evaluating the plan and
comparing the actual results to the budget. Weighing the cost against is the
benefits is the cost/benefit analysis
o Provides detailed reports on parts of the company
o Helps in planning and controlling operations
solution 2025
Which of the following correctly describes the accounting for advertising
costs? - correct answer ✔advertising costs are period costs and are
expensed as incurred
Which of the following is true of product costs? - correct answer ✔they are
first recorded in an inventory account
Which of the following is a product cost? - correct answer ✔depreciation on
production equipment
Which of the following is a philosophy designed to integrate all organizational
areas in order to provide customers with superior products and services, while
meeting organizational goals throughout the value chain? - correct answer
✔Total Quality Management (TQM)
Which of the following statements is true of the flow of product and period
costs for a manufacturer? - correct answer ✔the cost of the finished goods
that the manufacturer sells becomes its cost of goods sold on the income
statement
Management's accountability to its suppliers and vendors is to - correct
answer ✔make timely payments and comply with contract terms
which of the following is a part of manufacturing overhead? - correct answer
✔factory insurance
, For decision making purposes, ______ costs are often divided into prime
costs and conversion costs - correct answer ✔product costs
Which of the following is the primary focus of financial accounting? - correct
answer ✔provided summarized information on operational results to investors
and creditors
one of the primary activities of Rex, Inc is to purchase hats from Viva Inc. in
Texas and sell them to its customers in Washington for a profit. It is likely that
Rex is a - correct answer ✔merchandising company
Which of the following would be considered a product cost for a manufacturing
company? - correct answer ✔depreciation on manufacturing equipment
Managerial accounting can be used to calculate costs for service and
merchandising companies - correct answer ✔true
Financial accounting - correct answer ✔financial statements are used by
investors, creditors, and government authorities
o Helps investors make investment decisions
o Reports must follow Generally Accepted Accounting Principles (GAAP)
o Reports audited annually by independent certified public accountants
managerial accounting - correct answer ✔reports are generated for planning.
One planning tool is the budget. Controlling involves evaluating the plan and
comparing the actual results to the budget. Weighing the cost against is the
benefits is the cost/benefit analysis
o Provides detailed reports on parts of the company
o Helps in planning and controlling operations
