version a in 97

version a in 97 - A TEST 1 ACCOUNTING 2301 PART 1 MULTIPLE...

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A TEST 1 ACCOUNTING 2301 PART 1 – MULTIPLE CHOICE 1. The cost of the cushions that are used to manufacture sofas is best described as a: A) manufacturing overhead cost. B) period cost. C) variable cost. D) conversion cost. Ans: C AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1,2,5 Level: Medium 2. Chezpere Company manufactures and sells washing machines. In order to make assembly of the machines faster and easier, some of the metal parts in the machines are coated with grease. How should the cost of this grease be classified? Direct Material Cost Fixed Cost A) Yes Yes B) Yes No C) No Yes D) No No
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Ans: D AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1,5,6 Level: Har 3.All of the following are examples of product costs except: A) depreciation on the company's retail outlets. B) salary of the plant manager. C) insurance on the factory equipment. D) rental costs of the factory facility. Ans: A AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 2 Level: Eas 4. Which of the following production costs, if expressed on a per unit basis, would be most likely to change significantly as the production level varies? A) Direct materials. B) Direct labor. C) Fixed manufacturing overhead. D) Responses A and B are both correct. Ans: C AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting LO: 5 Level: Medium 5. Which of the following statements is correct concerning job-order costing? A) Job-order costing would be appropriate for a textbook publisher. B) All the costs appearing on a job cost sheet are actual costs. C) Indirect materials are charged to a specific job. D) Job-order costing is mainly used in firms with homogeneous products such as oil refineries. Ans: A AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1,2 Level: Medium 6. Which of the terms below would make the following sentence correct? Multiple overhead rate costing systems are usually more ____________ than plantwide overhead rates. accurate complex A) Yes Yes B) Yes No C) No Yes D) No No Ans: A AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 3 Level: Medium
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7. In a job-order costing system, the application of manufacturing overhead would be recorded as a debit to: A) Raw Materials inventory. B) Finished Goods inventory. C) Work in Process inventory. D) Cost of Goods Sold. Ans: C AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 4,5 Level: Medium 8.In process costing, a separate work in process account is kept for each: A) individual order. B) equivalent unit. C) processing department.
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version a in 97 - A TEST 1 ACCOUNTING 2301 PART 1 MULTIPLE...

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