ACC 202- ch 2 MC

D

A variable cost in total a. increases as output decreases and decreases as outputs increase b. increases as output increases and/or decreases. c. remains constant no matter the level of output. d. increases as output increases and decreases as outputs decreases

B

An indirect cost a. can be easily and accurately traced to a cost object b. is hard to trace c. should never be assigned to a cost object d. do none of these

D

Product costs a. are costs that are included in the determining the value of the inventory b. are manufacturing costs c. include direct materials, direct labor and overhead d. are all of these

C

Product costs consist of a. period costs b. indirect materials, indirect labor, and administrative costs c. direct materials, direct labor, and overhead d. direct materials, direct labor and selling costs

D

Production costs that are not attached to units that are sold are reported as a. selling expenses b. costs of goods sold c. administrative costs d. inventory

D

which of the following is an example of direct labor? a. vice president of human resources b. supervisor at a manufacturing plant c. staff accountant d. assembly line worker

B

which of the following would not be a period cost? a. research and development b. direct materials c. advertising costs d. office supplies

A

which of the following would not be included in overhead? a. marketing costs b. property taxes on the factory c. factory utility costs d. deprecation on factory machinery

C

Expired costs are called a. fixed b. costs c. expenses d. profit

B

Information from the records of Cain Corporation for December 2011 are as follows: Sales $1,230,000 Selling and administrative expenses 210,000 Direct materials used 264,000 Direct labor 300,000 Factory overhead 405,000 Inventories Dec. 1, 2011 Dec. 31, 2011 Direct materials $36,000 $42,000 Work in process 75,000 84,000 Finished goods 69,000 57,000 The prime costs are: a. $960,000. b. $564,000. c. $705,000. d. $969,000.

D

Lakeland Inc. manufactured 5,000 units during the month of March. They incurred direct materials cost of $100,000 and overhead cost of $40,000. If their per-unit prime cost was $26.00 per unit how much direct labor cost did they incur during March? a. $20,000 b. $35,000 c. $90,000 d. $30,000

C

Non-manufacturing costs include a. indirect materials b. direct materials c. marketing and administration d. overhead

C

nformation from the records of Cain Corporation for December 2011 are as follows: Sales $1,230,000 Selling and administrative expenses 210,000 Direct materials used 264,000 Direct labor 300,000 Factory overhead 405,000 Inventories Dec. 1, 2011 Dec. 31, 2011 Direct materials $36,000 $42,000 Work in process 75,000 84,000 Finished goods 69,000 57,000 The conversion costs are: a. $960,000. b. $1,179,000. c. $705,000. d. $564,000.