ACCS Review Exam with Accurate
Answers
Which of the following would most likely use a process cost system?
a.
lumber mill
b.
graduation photographer
c.
custom home builder
d.
custom helicopter manufacturer - ✔✔lumber mill
Equivalent production units are generally determined for
a.
direct materials only
b.
direct materials and conversion costs
c.
direct materials and direct labor costs
d.
conversion costs only - ✔✔direct materials and conversion costs
The four steps necessary to complete a cost of production report in a process cost system are
The correct ordering of the steps is
a.
4, 2, 3, 1
,b.
2, 4, 3, 1
c.
2, 3, 4, 1
d.
2, 3, 1, 4 - ✔✔2, 4, 3, 1
The costs of materials consumed in producing good units in the Production Department of
Jacobs Company were $38,000 and $39,125 for June and July, respectively. The number of
equivalent units produced in June and July was 4,000 and 4,250, respectively. Which of the
following best describes the change in the cost of materials between the two months?
a.
The cost of materials decreased by $0.29 per unit, indicating an improvement.
b.
The cost of materials increased by $1,125, indicating an unfavorable change.
c.
The cost of materials increased by $0.88 per unit, indicating an unfavorable change.
d.
The cost of materials increased by $0.28 per unit, indicating an unfavorable change - ✔✔The
cost of materials decreased by $0.29 per unit, indicating an improvement.
Which of the following is not a use of the cost of production report?
a.
to help managers improve operations
b.
to help managers isolate problems
c.
to help managers control operations
,d.
to project production - ✔✔to project production
If a company uses a process costing system to account for the costs in its five production
departments, how many work in process accounts will it use?
a.
6
b.
4
c.
2
d.
5 - ✔✔5
Which of the following is not included in conversion costs?
a.
direct materials
b.
indirect labor
c.
factory overhead
d.
direct labor - ✔✔direct materials
For which of the following businesses would a process cost system be appropriate?
a.
dressmaker
, b.
custom furniture manufacturer
c.
shampoo manufacturer
d.
boat repair service - ✔✔shampoo manufacturer
The three categories of manufacturing costs comprising the total cost of work in process are
direct labor, direct materials, and
a.
selling expenses
b.
accounting salaries expense
c.
factory overhead
d.
direct expenses - ✔✔factory overhead
Which of the following measures would not help managers to control and improve operations?
a.
commissions paid per time period
b.
cost trends of a product
c.
yield trends
d.
units produced per time period - ✔✔commissions paid per time period
Answers
Which of the following would most likely use a process cost system?
a.
lumber mill
b.
graduation photographer
c.
custom home builder
d.
custom helicopter manufacturer - ✔✔lumber mill
Equivalent production units are generally determined for
a.
direct materials only
b.
direct materials and conversion costs
c.
direct materials and direct labor costs
d.
conversion costs only - ✔✔direct materials and conversion costs
The four steps necessary to complete a cost of production report in a process cost system are
The correct ordering of the steps is
a.
4, 2, 3, 1
,b.
2, 4, 3, 1
c.
2, 3, 4, 1
d.
2, 3, 1, 4 - ✔✔2, 4, 3, 1
The costs of materials consumed in producing good units in the Production Department of
Jacobs Company were $38,000 and $39,125 for June and July, respectively. The number of
equivalent units produced in June and July was 4,000 and 4,250, respectively. Which of the
following best describes the change in the cost of materials between the two months?
a.
The cost of materials decreased by $0.29 per unit, indicating an improvement.
b.
The cost of materials increased by $1,125, indicating an unfavorable change.
c.
The cost of materials increased by $0.88 per unit, indicating an unfavorable change.
d.
The cost of materials increased by $0.28 per unit, indicating an unfavorable change - ✔✔The
cost of materials decreased by $0.29 per unit, indicating an improvement.
Which of the following is not a use of the cost of production report?
a.
to help managers improve operations
b.
to help managers isolate problems
c.
to help managers control operations
,d.
to project production - ✔✔to project production
If a company uses a process costing system to account for the costs in its five production
departments, how many work in process accounts will it use?
a.
6
b.
4
c.
2
d.
5 - ✔✔5
Which of the following is not included in conversion costs?
a.
direct materials
b.
indirect labor
c.
factory overhead
d.
direct labor - ✔✔direct materials
For which of the following businesses would a process cost system be appropriate?
a.
dressmaker
, b.
custom furniture manufacturer
c.
shampoo manufacturer
d.
boat repair service - ✔✔shampoo manufacturer
The three categories of manufacturing costs comprising the total cost of work in process are
direct labor, direct materials, and
a.
selling expenses
b.
accounting salaries expense
c.
factory overhead
d.
direct expenses - ✔✔factory overhead
Which of the following measures would not help managers to control and improve operations?
a.
commissions paid per time period
b.
cost trends of a product
c.
yield trends
d.
units produced per time period - ✔✔commissions paid per time period
