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