ACC 240 midterm exam - guide

1 of 35

The focus of management accounting is on

[removed]	tax preparation.
[removed]	external reporting.
[removed]	internal reporting.
[removed]	auditing.

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2 of 35

________ is designed to meet the needs of internal decision makers.

[removed]	Tax accounting
[removed]	Managerial accounting
[removed]	Financial accounting
[removed]	Audit accounting

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3 of 35

The primary goal of managerial accounting is to provide information to

[removed]	internal decision makers.
[removed]	shareholders.
[removed]	creditors.
[removed]	both shareholders and creditors.

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4 of 35

The primary goal of financial accounting is to provide information for

[removed]	governmental regulators.
[removed]	creditors.
[removed]	potential investors.
[removed]	all of the above.

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5 of 35

Which of the following are the internal decision makers of a company?

[removed]	Vendors
[removed]	Managers
[removed]	Shareholders
[removed]	Customers

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6 of 35

Inventoriable product costs for a manufactured product include

[removed]	the costs of direct materials, direct labor, and manufacturing overhead.
[removed]	marketing and research and development costs.
[removed]	the costs of direct materials and direct labor only.
[removed]	none of the above.

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7 of 35

When do inventoriable costs become expenses?

[removed]	When direct materials are purchased
[removed]	When the manufacturing process begins
[removed]	When the manufacturing process is completed
[removed]	None of the above

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8 of 35

Manufacturers consider selling and administrative costs to be

[removed]	period costs.
[removed]	conversion costs.
[removed]	inventoriable costs.
[removed]	prime costs.

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9 of 35

Which of the following is an example of a period cost when manufacturing products?

[removed]	Depreciation expense on factory equipment
[removed]	Advertising expense
[removed]	Indirect materials used in the factory
[removed]	Property taxes on the plant

Question

10 of 35

Which of the following is an example of an inventoriable cost when manufacturing products?

[removed]	Depreciation on office equipment
[removed]	Depreciation on store building
[removed]	Sales salaries expenses
[removed]	Depreciation on factory equipment

Question

11 of 35

A ________ is used to accumulate the costs of a job.

[removed]	labor time record
[removed]	materials inventory requisition form
[removed]	bill of materials
[removed]	job cost record

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12 of 35

Which of these documents informs the storeroom to send specific materials to the factory floor?

[removed]	Receiving report
[removed]	Bill of materials
[removed]	Purchase order
[removed]	Materials requisition

Question

13 of 35

In the flow of costs, which of the following comes first?

[removed]	Cost of goods sold
[removed]	Finished goods inventory
[removed]	Work in process inventory
[removed]	Raw materials inventory

Question

14 of 35

In the flow of costs, which of the following comes last?

[removed]	Finished goods inventory
[removed]	Cost of goods sold
[removed]	Raw materials inventory
[removed]	Work in process inventory

Question

15 of 35

When used, raw materials

[removed]	would be classified as direct materials.
[removed]	would be classified as direct labor.
[removed]	would be classified as indirect materials.
[removed]	The answer cannot be determined with the information provided.

Question

16 of 35

The first step in the five-step process for costing procedure is

[removed]	compute output in terms of equivalent units.
[removed]	summarize total costs to account for.
[removed]	compute the cost per equivalent unit.
[removed]	summarize the flow of physical units.

Question

17 of 35

In Step 1 of the process costing procedure, the "total units accounted for" is the sum of

[removed]	the units completed and transferred out plus the units in ending WIP.
[removed]	the units in ending WIP plus the units started in production during the month.
[removed]	the units in beginning WIP plus the units in ending WIP.
[removed]	the units in beginning WIP plus the units completed and transferred out.

Question

18 of 35

How is the cost per equivalent unit computed?

[removed]	Total equivalent units divided by total costs to account for
[removed]	Total costs to account for divided by total equivalent units
[removed]	Costs in beginning WIP inventory divided by equivalent units in beginning WIP
[removed]	Costs added to production during the month divided by equivalent units in ending WIP

Question

19 of 35

Which item would appear last on a production cost report?

[removed]	Cost of goods finished for the month
[removed]	Total costs accounted for
[removed]	Beginning WIP inventory, if any
[removed]	Ending WIP inventory, if any

Question

20 of 35

For which of the following do you prepare calculations for equivalent units?

[removed]	Both direct labor and manufacturing overhead
[removed]	Both direct materials and conversion costs
[removed]	Both direct labor and direct materials
[removed]	Neither direct materials nor conversion costs

Question

21 of 35

When calculating a departmental overhead rate, what should the numerator be?

[removed]	Total estimated amount of the departmental allocation base
[removed]	Total estimated departmental overhead cost pool
[removed]	Total estimated amount of manufacturing overhead for the factory
[removed]	Actual quantity of the departmental allocation base used by the job

Question

22 of 35

Which of the following condition(s) favors using departmental overhead rates in place of a plantwide overhead rate?

[removed]	A. Different departments incur different amounts and types of manufacturing overhead.
[removed]	B. Different jobs or products use the departments to a different extent.
[removed]	C. Both A and B.
[removed]	D. Neither A or B.

Question

23 of 35

What will the use of departmental overhead rates generally result in?

[removed]	The use of a separate cost allocation base for each department in the factory
[removed]	The use of a single cost allocation base
[removed]	The use of a single overhead cost pool for the factory
[removed]	The use of separate cost allocation base for each activity in the factory

Question

24 of 35

Using factory utilities would most likely be classified as a ________ cost.

[removed]	unit-level
[removed]	batch-level
[removed]	facility-level
[removed]	product-level

Question

25 of 35

In ABC, how is the activity allocation rate computed?

[removed]	The total estimated activity allocation base is divided by the total estimated activity cost pool.
[removed]	The total estimated activity cost pool is divided by the total estimated activity allocation base.
[removed]	The total estimated activity allocation base is multiplied by the total estimated activity cost pool.
[removed]	You take the total estimated activity allocation base and subtract the total estimated total activity. cost pool.

Question

26 of 35

A(n) ________ cost is a cost whose total amount changes in direct proportion to a change in volume.

[removed]	variable
[removed]	fixed
[removed]	mixed
[removed]	irrelevant

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27 of 35

Which of the following costs is an example of a fixed cost?

[removed]	Sales commissions
[removed]	Salary of the plant manager
[removed]	Direct materials
[removed]	Delivery costs

Question

28 of 35

With respect to total variable costs, which of the following statements is true?

[removed]	They will remain the same as production levels change within the relevant range.
[removed]	They will decrease as production decreases within the relevant range.
[removed]	They will decrease as production increases within the relevant range.
[removed]	They will increase as production decreases within the relevant range.

Question

29 of 35

Total fixed costs for Taylor Incorporated are $240,000. Total costs, including both fixed and variable, are $500,000 if 125,000 units are produced. The variable cost per unit is

[removed]	$5.92/unit.
[removed]	$2.08/unit.
[removed]	$4.00/unit.
[removed]	$1.92/unit.

Question

30 of 35

Total fixed costs for Randolph Manufacturing are $754,000. Total costs, including both fixed and variable, are $1,000,000 if 150,000 units are produced. The variable cost per unit is

[removed]	$6.67/unit.
[removed]	$5.03/unit.
[removed]	$11.69/unit.
[removed]	$1.64/unit.

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31 of 35

Total contribution margin less total fixed expenses equals

[removed]	contribution margin ratio.
[removed]	operating income.
[removed]	gross profit.
[removed]	sales revenue.

Question

32 of 35

The unit contribution margin is computed by

[removed]	subtracting the variable cost per unit from the sales price per unit.
[removed]	dividing the sales revenue by variable cost per unit.
[removed]	dividing the variable cost per unit by the sales revenue.
[removed]	subtracting the sales price per unit from the variable cost per unit.

Question

33 of 35

Dairy Days Ice Cream sells ice cream cones for $4 per customer. Variable costs are $3 per cone. Fixed costs are $2,500 per month. What is Dairy Days' contribution margin per ice cream cone?

[removed]	$1.00
[removed]	$3.00
[removed]	$0.25
[removed]	$4.00

Question

34 of 35

Mom and Pop's Ice Cream Shoppe sells ice cream cones for $5per customer. Variable costs are $2.25 per cone. Fixed costs are $3,000 per month. What is the company's contribution margin per ice cream cone?

[removed]	$2.25
[removed]	$2.75
[removed]	$0.55
[removed]	$1.82

Question

35 of 35

Electric Jet Skis operates a Jet Ski rental business. Assume the jet skis rent for $55 for 6 hours. The variable costs are $33 per six-hour rental, and its fixed costs are $80,000 each month. What is the contribution margin per six-hour jet ski rental?

[removed]	$33.00
[removed]	$0.40
[removed]	$22.00
[removed]	$2.50

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ACC 240 midterm exam - guide

ACC 240 - MCQ