Financial Accounting > EXAM > ACCT 505 MIDTERM EXAM QUESTIONS AND ANSWERS | VERIFIED GUIDE (All)

ACCT 505 MIDTERM EXAM QUESTIONS AND ANSWERS | VERIFIED GUIDE

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1. Question : (TCO A) Direct material cost is a part of Conversion Cost NO.... Prime Cost NO. Conversion Cost YES.... Prime Cost NO. Conversion Cost YES.... Prime Cost YES. ... Conversion Cost NO.... Prime Cost YES. Question 2. Question : (TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n) period cost. incremental cost. opportunity cost. None of the above Question 3. Question : (TCO A) The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n) period cost. direct material cost. indirect manufacturing cost. direct product cost. None of the above Question 4. Question : (TCO C) When the activity level is expected to decrease within the relevant range, what effects would be anticipated with respect to each of the following? Fixed cost per unit Variable cost per unit Increase No change Increase Increase Decrease No change No change Increase Question 5. Question : (TCO B) When manufacturing overhead is applied to production, it is added t the cost of goods sold account. the raw materials account. the direct labor account. None of the above Question 6. Question : (TCO B) Which of the following statements about the process-costing system is/are correct? In a process-costing system, each processing department has a work-in-process account. In a process-costing system, equivalent units are separately computed for materials and for conversion costs. In a process-costing system, overhead can be under- or over-applied just as in job-order costing. All of the statements above are correct. [Show More]

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