ACCT505 - Devry - Midterm - 2015 - MCQs

      Prime Cost YES.....Conversion Cost NO.

      Prime Cost YES.....Conversion Cost YES.

      Prime Cost NO....Conversion Cost NO.

      Prime Cost NO.....Conversion Cost YES.

      direct costs.

      sunk costs.

      incremental costs.

      None of the above

      variable costs.

      conversion costs.

      product costs.

      period costs.

      Fixed costs per unit increase and variable costs per unit increase.

      Fixed costs per unit decrease and variable costs per unit do not change.

      Fixed costs per unit do not change and variable costs per unit do not change.

      Fixed costs per unit do not change and variable costs per unit increase.

      understate the predetermined overhead rate.

      overstate the predetermined overhead rate.

      have no effect on the predetermined overhead rate.

      This cannot be determined from the information given.

      many different products, jobs, or batches of production are being produced each period.

      manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.

      the product moves from department to department before being completed.

      the unit cost of production is computed by dividing the total production costs by the number of units produced.

      the calculation of equivalent units is less complex under the FIFO method.

      the FIFO method treats units in the beginning inventory as if they were started and completed during the current period.

      the FIFO method provides measurements of work done during the current period.

      the weighted-average method ignores units in the beginning and ending work-in-process inventories.

      break-even point increases.

      break-even point decreases.

      variable expenses as a percentage of net sales decrease.

      variable expenses as a percentage of net sales increase.

      Number of units sold

      Variable expense per unit

      Total fixed expenses

      Selling price per unit

      be used in the computation of the contribution margin.

      be used in the computation of net operating income but not in the computation of the contribution margin.

      be treated differently from variable manufacturing expenses.

      not be used.