Act505 Midterm Essay

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1. Question : Student Answer: (TCO A) Wages paid to an assembly line worker in a factory are a Prime Cost YES.....Conversion Cost NO. Prime Cost YES.....Conversion Cost YES. Prime Cost NO....Conversion Cost NO. Instructor Explanation: Points Received: Comments: 2. Question : Student Answer: Prime Cost NO.....Conversion Cost YES. Chapter 2 6 of 6 (TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n) period cost. incremental cost. opportunity cost. Instructor Explanation: Points Received: Comments: 3. Question : Student Answer: None of the above Chapter 2 6 of 6 (TCO A) Property taxes on a company's factory building would be classified as a(n) sunk cost. opportunity cost. period cost. variable cost. Instructor Explanation: Points Received: Comments: 4. Question : Student Answer: manufacturing cost. Chapter 2 6 of 6 (TCO A) Within the relevant range, variable costs can be expected to 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. Instructor Explanation: Points Received: Comments: 5. Question : None of the above Chapter 5 6 of 6 (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. Student Answer: Only statement I is true. Only statement II is true. Both statements I and II are true. Instructor Explanation: Points Received: Comments: 6. Question : Student Answer:
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