Quiz - BUS 121 Ch. 2 _1A

Quiz - BUS 121 Ch. 2 _1A - unit basis_FALSE 6.All of the...

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NAME CHRISTINE DONALDSON SCORE ______________ BUS 121: Managerial Accounting Chapter 2 Quiz #1 T/F Questions: (1 point each) ___FALSE ____ 1.The three manufacturing costs of production are (1) Raw Materials, (2) Work-In- Process, and (3) Finished Goods. __TRUE _____ 2.When used within the context of direct or indirect cost, manufacturing overhead can be thought of as being the indirect costs of production. __TRUE _____ 3.The thread used in the production of mattresses, an indirect material, is classified as manufacturing overhead . __TRUE _____ 4.A variable cost remains constant if expressed on a per unit basis, but the total dollar amount changes as the number of units increases or decreases. __TRUE _____ 5.As activity increases within a relevant range, fixed costs remain constant on a per
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Unformatted text preview: unit basis. __FALSE _____ 6.All of the following are examples of opportunity costs : salary given up to start a business; rental income given up when you live in a house you own; and interest income that could be earned on money spent for a car. MC Questions: (2 points each) 1. The one cost that would be classified as part of the both the prime cost and conversion cost would be: A.) direct material. B.) indirect material. C.) direct labor. D.) indirect labor. The answer is __ C _____. 2. The cost of the cushions that are used to manufacture sofas can be best described by which of the following “cost” terms? A.) Manufacturing Overhead Cost. B.) Conversion Cost. C.) Period Cost. D.) Variable Cost. The answer is __ B _____....
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This note was uploaded on 06/26/2009 for the course ACC 400 taught by Professor Kim during the Summer '08 term at Grossmont.

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