Accounting Quiz
CORRECT
All of the following would be classified as manufacturing overhead except the:
A) wages of supervisor of the machining shop.
B) depreciation of the equipment in the machining shop.
C) property taxes relating to the building that houses the machining shop.
D)
All of the above would be classified as manufacturing overhead.
Feedback:
The correct answer is D (Learning Objective 1):
Manufacturing overhead includes all manufacturing costs except direct materials and direct labor. It includes items such as indirect materials, indirect labor, maintenance and repair on production equipment, and heat and light, property taxes, depreciation, and insurance on manufacturing facilities.
2 CORRECT
All of the following would be classified as product costs except:
A) the cost of air-conditioning the factory foreman's office.
B) depreciation on the machinery in the factory.
C) the cost of shipping units of product to one of the company's customers.
D)
All of the above would be classified as product costs.
Feedback:
The correct answer is C (Learning Objective 2):
All selling and administrative costs are treated as period costs. The cost of shipping unit of product to the company's customers is a selling cost. As such, it cannot be classified as a product cost.
3 CORRECT
Within the relevant range:
A) both total variable costs and total fixed costs will remain constant.
B) both total variable costs and total fixed costs fluctuate.
C) fixed costs per unit will remain constant and variable costs per unit will fluctuate.
D) variable costs per unit will remain constant and fixed costs per unit will fluctuate.
Feedback:
The correct answer is D (Learning Objective 3):
The relevant range is the range of activity within which the assumptions about variable and fixed costs are valid. Within the relevant range, the following assumptions are made
All of the following would be classified as manufacturing overhead except the:
A) wages of supervisor of the machining shop.
B) depreciation of the equipment in the machining shop.
C) property taxes relating to the building that houses the machining shop.
D)
All of the above would be classified as manufacturing overhead.
Feedback:
The correct answer is D (Learning Objective 1):
Manufacturing overhead includes all manufacturing costs except direct materials and direct labor. It includes items such as indirect materials, indirect labor, maintenance and repair on production equipment, and heat and light, property taxes, depreciation, and insurance on manufacturing facilities.
2 CORRECT
All of the following would be classified as product costs except:
A) the cost of air-conditioning the factory foreman's office.
B) depreciation on the machinery in the factory.
C) the cost of shipping units of product to one of the company's customers.
D)
All of the above would be classified as product costs.
Feedback:
The correct answer is C (Learning Objective 2):
All selling and administrative costs are treated as period costs. The cost of shipping unit of product to the company's customers is a selling cost. As such, it cannot be classified as a product cost.
3 CORRECT
Within the relevant range:
A) both total variable costs and total fixed costs will remain constant.
B) both total variable costs and total fixed costs fluctuate.
C) fixed costs per unit will remain constant and variable costs per unit will fluctuate.
D) variable costs per unit will remain constant and fixed costs per unit will fluctuate.
Feedback:
The correct answer is D (Learning Objective 3):
The relevant range is the range of activity within which the assumptions about variable and fixed costs are valid. Within the relevant range, the following assumptions are made