ACCT 2302 Chapter 1 Exam Questions with Correct Answers Latest Update 2025/2026
Financial Accounting - Answers concerned with
reporting financial information to external
parties, such as stockholders, creditors, and
regulators
Managerial Accounting - Answers concerned with providing information to managers within an
organization so that they can formulate plans, control operations, and make decisions
Product Costs - Answers - include all costs involved in acquiring or making a product
- "attach" to a unit of product as it is purchased or manufactured and they stay attached to each
unit of product as long as it remains in inventory awaiting sale
Period Costs - Answers - all the costs that are not product costs
- All selling and administrative expenses are treated as ______
Cost Objects - Answers - Products
- Lines of Products
- Customers
- Units
- Departments
- Geographical regions
- Business Segments
Direct Costs - Answers - Costs that can be easily and conveniently traced to a unit of product or
other cost object
- Ex: direct material and direct labor
Indirect Costs - Answers - Costs that cannot be easily and conveniently traced to a unit of
product or other cost object
- Ex: manufacturing overhead
Direct Materials (Manufacturing Costs) - Answers - Raw materials that become an integral part
of the finished product and whose costs can be conveniently traced to the finished product
Financial Accounting - Answers concerned with
reporting financial information to external
parties, such as stockholders, creditors, and
regulators
Managerial Accounting - Answers concerned with providing information to managers within an
organization so that they can formulate plans, control operations, and make decisions
Product Costs - Answers - include all costs involved in acquiring or making a product
- "attach" to a unit of product as it is purchased or manufactured and they stay attached to each
unit of product as long as it remains in inventory awaiting sale
Period Costs - Answers - all the costs that are not product costs
- All selling and administrative expenses are treated as ______
Cost Objects - Answers - Products
- Lines of Products
- Customers
- Units
- Departments
- Geographical regions
- Business Segments
Direct Costs - Answers - Costs that can be easily and conveniently traced to a unit of product or
other cost object
- Ex: direct material and direct labor
Indirect Costs - Answers - Costs that cannot be easily and conveniently traced to a unit of
product or other cost object
- Ex: manufacturing overhead
Direct Materials (Manufacturing Costs) - Answers - Raw materials that become an integral part
of the finished product and whose costs can be conveniently traced to the finished product
