# Ac505 Mid Term Examples

Topics: Variable cost, Costs, Cost Pages: 12 (1738 words) Published: February 4, 2012
Midterm week 4

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These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. | Date Taken: | 8/2/2011| Time Spent:| 2 h , 23 min , 35 secs |

Points Received:| 127 / 150 (84.7%) |
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Question Type:| # Of Questions:| # Correct:|
Multiple Choice| 10| 7|
Short| 1| N/A|
Essay| 3| N/A|
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Page: | 1 2 |
1.| Question :| (TCO A) Wages paid to an assembly line worker in a factory are a:|
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| Student Answer:| | Prime Cost YES.....Conversion Cost NO | | | | Prime Cost YES.....Conversion Cost YES |
| | | Prime Cost NO....Conversion Cost NO |
| | | Prime Cost NO.....Conversion Cost YES |
| Instructor Explanation:| Chapter 2|
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| Points Received:| 6 of 6 |
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2.| Question :| (TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n): |
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| Student Answer:| | period cost. |
| | | incremental cost. |
| | | opportunity cost. |
| | | none of the above. |
| Instructor Explanation:| Chapter 2|
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| Points Received:| 6 of 6 |
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3.| Question :| (TCO A) Property taxes on a company's factory building would be classified as a(n): |
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| Student Answer:| | sunk cost |
| | | opportunity cost |
| | | period cost |
| | | variable cost |
| | | manufacturing cost |
| Instructor Explanation:| Chapter 2|
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| Points Received:| 0 of 6 |
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4.| Question :| (TCO A) When the activity level is expected to increase within the relevant range, what effects would be anticipated with respect to each of the following? Fixed Cost Per Unit Variable Cost Per Unit|

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| Student Answer:| | Increase No Change |
| | | Increase Increase |
| | | decrease No Change |
| | | No Change Increase |
| Instructor Explanation:| Chapter 5|
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| Points Received:| 0 of 6 |
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5.| Question :| (TCO F) Which of the following statements is true? I. Overhead application may be made slowly as a job is worked on. II. Overhead application may be made in a single application at the time of completion of the job. III. Overhead application should be made to any job not completed at year-end in order to properly value the work in process inventory.|

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| Student Answer:| | Only statement I is true |
| | | Only statement II is true |
| | | Both statements I and II are true |
| | | Statements I, II, and III are all true |
| Instructor Explanation:| Chapter 3|
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| Points Received:| 6 of 6 |
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6.| Question :| (TCO F) Which of the following statements about process costing system is incorrect? |
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| Student Answer:| | In a process costing system, each processing department has a work in process account | | | | In a process costing system, equivalent units are separately computed for materials and for conversion costs | | | | In a process costing system, overhead can be under- or overapplied just as in job-order costing | | | | In a process costing system, materials costs are traced to units of products | | Instructor Explanation:| Chapter 4|

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| Points Received:| 6 of 6 |
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7.| Question :| (TCO F) Equivalent units for a process costing system using the FIFO method would be equal to: |
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| Student Answer:| | units completed during the period, plus equivalent units in the ending work in process inventory | | | | units started and completed during the period, plus equivalent units in the ending work in process inventory |...