Chapter _1 Quiz with answers Fall 2009

Chapter _1 Quiz with answers Fall 2009 - ACC 208 Managerial...

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ACC 208: Managerial Accounting for Decision Making Chapter #1 Quiz – Answers Fall 2009 True or False : Enter a T or a F in the blank to indicate whether the statement is true or false F 1. Raw materials consists of only the basic natural resources, such as iron ore. Raw materials consist of any materials used to make a product. The finished goods of one company can be the raw materials of another company. F 2. A supervisor’s salary would be considered direct labor if the supervisor works directly in the factory. Direct labor can be physically traced to products in a “hands on” sense. Supervisors do not work directly on products and therefore are not direct labor. T 3. Nonmanufacturing costs consist of selling and administrative costs. Nonmanufacturing cost is synonymous with selling and administration costs. T 4. Sunk costs can be either variable or fixed. A sunk cost is a cost that has already been incurred and can be variable or fixed. If obsolete materials have already been purchased, for example,
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Chapter _1 Quiz with answers Fall 2009 - ACC 208 Managerial...

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