ACCT 311 Chapter 1 Exam Questions and Answers Already Passed Latest Update

ACCT 311 Chapter 1 Exam Questions and Answers Already Passed Latest Update cost of goods sold - Answers beginning inventory + net purchases - ending inventory Costs that can be easily and conveniently traced to a specific product are called _______________ costs. - Answers Direct Indirect labor costs include: - Answers a. administrative assistant salary b. assembly-line supervisor salary B,D c. assembly-line worker wages d. factory security guard wages Within the relevant range, ____________ costs remain constant on a per unit basis. - Answers variable A change in revenues between two alternatives is known as _____________ revenue or incremental revenue. - Answers differential Administrative costs include: - Answers a. sales commissions and factory supervisors' salaries b. executive compensation and public relations costs c. factory maintenance workers' wages and factory supervisors' salaries d. shipping costs and sales commissions B. Which of the following statements are true? - Answers a. The relevant range of activity is approximated by a straight line b. within the relevant range of activity, fixed costs remain constant in total c. Within the relevant range of activity total variable costs do not change. A,B Factory costs such as cleaning supplies, taxes, insurance, and janitor wages are classified as __________. - Answers manufacturing overhead Which of the following statements are true? - Answers When mixed costs are represented by a straight-line, the steeper the slope, the higher the variable cost per unit. A mixed cost has a minimun cost of having a service available and ready for use. Mixed costs are also commonly known as semi-__________ costs - Answers variable Product costs are also called _____________costs. - Answers inventoriable Which of the following statements are true? - Answers a. the wages of assembly-line workers are period costs b. period costs are expensed in the same period in which they are incurred. c. period costs are included as part if the costs of goods. d. sales commissions are period costs. B,D A cost that changes in direct proportion to changes in the activity level is a ___________cost - Answers variable Labor costs that an be easily and conveniently traced to specific products are ___________ costs. - Answers direct labor Costs that have already been incurred and can NOT be changed by decisions made in the current period or in the future periods are called __________ costs. - Answers sunk The revenue obtained from selling one additional unit of product is called _____________ revenue. - Answers marginal A laptop computer manufacturer would consider the computer's processor chip to be a(n) __________ cost. - Answers direct material Which of the following are most likely fixed costs? - Answers a. electricity to operate factory machines b. administrative salaries c. factory insurance d. factory rent B,C,D Opportunity costs: - Answers a. are uncommon in decision making b. are benefits that are given up when selecting one alternative over another. B,D c. are part of traditional accounting records d. should be considered in decision making A manufacturing cost that CANNOT be easily traced to a specific cost object is a(n) _________ cost. - Answers indirect An activity base: - Answers a. messures whatever causes costs to vary b. is sometimes called a cost driver c. is a measure of whatever causes fixed costs to occur d. is part of the organization where major operations are planned and carried out. A,B How individual costs react to changes in activity level is referred to as cost ________. - Answers behavior The following information is for S&P Enterprises for the month of July: direct materials 76,000 direct labor 40,000 variable manufacturing overhead 25,000 fixed manufacturing overhead 30,000 variable selling expense 12,000 fixed selling expense 15,000 variable administrative expense 6,000 fixed administrative expense 18,000 Total conversion cost for the month of July was: - Answers direct labor + manufacturing overhead= 40,000 + 25,000 + 30,000 = 95,000