Ac505 Midterm

Topics: Variable cost, Costs, Management accounting Pages: 4 (953 words) Published: March 21, 2012
1. (TCO A) The variable portion of advertising costs is a: (Points : 6)        Conversion YES... Period NO
       Conversion YES .... Period YES
       Conversion NO.... Period YES   
       Conversion NO.... Period NO|
2. (TCO A)  Fixed costs expressed on a per unit basis: (Points : 6)        will increase with increases in activity.
       will decrease with increases in activity.
       are not affected by activity.
       should be ignored in making decisions since they cannot change. | 3. (TCO A)  Property taxes on a company's factory building would be classified as a(n): (Points : 6)        sunk cost
       opportunity cost
       period cost
       variable cost
       manufacturing cost|
4. (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(Points : 6)        Increase                No Change        Increase                 Increase        decrease             No Change

       No Change             Increase|
5. (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.(Points : 6)        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|
6. (TCO F)  A job order cost system is employed in those situations where: (Points : 6)        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...
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