ACC 222 Exam 1
FIXED
ALWASY THE SAME
Which of the following requires that the costs incurred to generate a particular revenue should be recognized as expenses in the same period that the revenue is recognized? Materiality concept Consistency principle Matching principle Going concern assumption
Consistency principle
Variable Cost
DM DL VARIABLE SALES COMMISSION
Incremental Cost per unit
DM+ DL+ VAR. MAN. OVER
Which of the following is common to both prime cost and conversion cost? Manufacturing overhead Direct materials Non-manufacturing costs Direct labor
Direct labor
Avg. Fixed Man
Fixed Man* Hours That #/actual hrs
Manufacturing Overhead
Indirect materials Indirect labor Maintance and repairs
man. over. applied
POR *DLH
Which of the following best describes the wages of a sheet metal worker in a fabrication plant? Product costs Period costs Non-manufacturing costs Administrative costs
Product costs
Contribution Margin
Selling price - Variable Cost
Which of the following observations is true of period costs? They are expensed in the period in which they are incurred. They are included as part of the cost of manufactured goods. They include costs that are incurred to convert materials into the finished product. They are also known as inventoriable costs.
They are expensed in the period in which they are incurred.
Period Cost (NonManufacturing, Selling&Admin)
This includes all selling and administrative expenses.
Product Cost (Manufacturing Cost, COGS)
This includes direct materials, direct labor, and manufacturing overhead.
Conversion Cost
This is the sum of direct labor and manufacturing overhead.
Prime Cost
This is the sum of direct materials cost and direct labor cost.
Total Man. Overhead
fixed*given # + variable *actual