Sample Test for Chapter 2

Sample Test for Chapter 2 - Indiana University of...

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Department of Accounting ACCT 607: MANAGEMENT ACCOUNTING DR. RAHMAN Sample Quiz for Chapter 2 Circle the best choice. 1. Which of the following statements is true? A. The word "cost" has the same meaning in all situations in which it is used. B. Cost data, once classified and recorded for a specific application, are appropriate for use in any application. C. Different cost concepts and classifications are used for different purposes. D. All organizations incur the same types of costs. 2. Product costs are: A. expensed when incurred. B. inventoried. C. treated in the same manner as period costs. D. treated in the same manner as advertising costs. 3. Which of the following would not be classified as a product cost? A. Direct materials. B. Direct labor. C. Indirect materials. D. Sales commissions. 4. The accounting records of Tacoma Company revealed the following costs: direct materials used, $170,000; direct labor, $350,000; manufacturing overhead, $400,000; and selling and administrative expenses, $220,000. Tacoma's product costs total: A. $520,000. B. $750,000. C. $920,000. D. $1,140,000. 5. Which of the following is a period cost? A. Direct material. B. Advertising expense. C. Depreciation on cars driven by a firm's president and treasurer. D. Both "B" and "C." 6. The accounting records of Hill Corporation revealed the following selected costs: Sales commissions, $40,000; plant supervision, $94,000; and administrative expenses, $185,000. Hill's period costs total:
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Sample Test for Chapter 2 - Indiana University of...

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