Variable Cost

Good Essays
ACT 2131 –
QUIZ 1 solution

MATRIX NO: ______________________

Answer all questions by using OMR form given

1. Managerial accounting:
A. has its primary emphasis on the future.
B. is required by regulatory bodies such as the SEC.
C. focuses on the organization as a whole, rather than on the organization's segments.
D. Responses a, b, and c are all correct.

2. The plans of management are expressed formally in:
A. the annual report to shareholders.
B. Form 10-Q submitted to the Securities and Exchange Commission.
C. performance reports.
D. budgets.

3. The costs of direct materials are classified as:

A. Choice A
B. Choice B
C. Choice C
D. Choice D

4. The three basic elements of manufacturing cost are direct materials, direct labor, and:
A. cost of goods manufactured.
B. cost of goods sold.
C. work in process.
D. manufacturing overhead.

5. 25. Prime cost consists of direct materials combined with:
A. direct labor.
B. manufacturing overhead.
C. indirect materials.
D. cost of goods manufactured.

6. Which terms below correctly describe the cost of the black paint used to paint the dots on a pair of dice?

A. Choice A
B. Choice B
C. Choice C
D. Choice D

7. The cost of fire insurance for a manufacturing plant is generally considered to be a:
A. product cost.
B. period cost.
C. variable cost.
D. all of these.

8. Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?
A. Product cost
B. Manufacturing overhead
C. Period cost
D. Administrative cost

9. Micro Computer Company has set up a toll-free telephone line for customer inquiries regarding computer hardware produced by the company. The cost of this toll-free line would be classified as which of the following?
A. Product cost
B. Manufacturing overhead
C. Direct labor
D. Period cost

10. Cost of goods manufactured

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