Acct505 Midterm Exam

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Week 4 : ABC and Budgeting - Midterm March 29, 2013 1. (TCO A) Wages paid to an assembly line worker in a factory are a (Points : 6) | Prime Cost YES.....Conversion Cost NO. Prime Cost YES.....Conversion Cost YES. Prime Cost NO....Conversion Cost NO. Prime Cost NO.....Conversion Cost YES. | 2. (TCO A) The costs of staffing and operating the accounting department at Central Hospital would be considered by the Department of Surgery to be (Points : 6) | direct costs. sunk costs. incremental costs. None of the above | 3. (TCO A) The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n): (Points : 6) | period cost. direct material cost. indirect manufacturing cost. direct labor cost. None of the above | 4. (TCO A) Within the relevant range, variable costs can be expected to (Points : 6) | vary in total in direct proportion to changes in the activity level. remain constant in total as the activity level changes. increase on a per-unit basis as the activity level increases. increase on a per-unit basis as the activity level decreases. None of the above | 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) Which of the

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