REVISION

MCQ FOR FINAL

1- Which of the following would be considered an actual
cost of a current period?
• A) The $25 of materials in a manufactured chair that is
ready to be shipped to the customer
• B) The $22 of direct material cost per unit assumed in the
actual budget of a manufacturer of chairs
• C) The expected cost of materials for a chair as a result of
engineering specifications
• D) The average of historical material cost data for a chair
manufactured in several past accounting periods
 1- Which of the following would be considered an actual
cost of a current period?
• A) The $25 of materials in a manufactured chair that is
ready to be shipped to the customer
• B) The $22 of direct material cost per unit assumed in the
actual budget of a manufacturer of chairs
• C) The expected cost of materials for a chair as a result of
engineering specifications
• D) The average of historical material cost data for a chair
manufactured in several past accounting period.
2- A cost system determines the cost of a cost object by
________.
• A) accumulating and then assigning costs
• B) accumulating costs
• C) assigning and then accumulating costs
• D) assigning costs
 2- A cost system determines the cost of a cost object by
________.
• A) accumulating and then assigning costs
• B) accumulating costs
• C) assigning and then accumulating costs
• D) assigning costs
3- The determination of a cost as either direct or indirect
depends upon the ________.
• A) accounting standards
• B) tax system chosen
• C) inventory valuation
•

• D) cost object chosen

 3- The determination of a cost as either direct or indirect
depends upon the ________.
• A) accounting standards
• B) tax system chosen
• C) inventory valuation
• D) cost object chosen
4- Which of the following is true if the production volume
decreases?
• A) fixed cost per unit increases
• B) average cost per unit decreases
• C) variable cost per unit increases
• D) variable cost per unit decreases
 4- Which of the following is true if the production
volume decreases?
• A) fixed cost per unit increases
• B) average cost per unit decreases
• C) variable cost per unit increases
• D) variable cost per unit decreases
5- A truck maintenance cost most likely used cost driver is
the ________.
• A) number of parts within the product
• B) number of miles driven
• C) number of products manufactured
• D) number of production hours
 5- A truck maintenance cost most likely used cost driver
is the ________.
• A) number of parts within the product
• B) number of miles driven
• C) number of products manufactured
• D) number of production hours
• Questions (6) to (8) are based on the following data:
• Puritan Apparels is a clothing retailer. Unit costs associated with
one of its products, Product AHF 130, are as follows:
6- What are the direct variable manufacturing costs per unit
associated with Product AHF 130?
• A) $ 288
• B) $ 200
• C) $ 245
• D) $ 255
6- What are the direct variable manufacturing costs per unit
associated with Product AHF 130?
• A) $ 288
• B) $ 200
• C) $ 245
• D) $ 255
• Questions (6) to (8) are based on the following data:
• Puritan Apparels is a clothing retailer. Unit costs associated with
one of its products, Product AHF 130, are as follows:
7- What are the indirect nonmanufacturing variable costs per
unit associated with Product AHF 130?
• A) $ 28
• B) $ 43
• C) $ 38
• D) $ 10
 7- What are the indirect nonmanufacturing variable costs per
unit associated with Product AHF 130?
• A) $ 28
• B) $ 43
• C) $ 38
• D) $ 10
• Questions (6) to (8) are based on the following data:
• Puritan Apparels is a clothing retailer. Unit costs associated with
one of its products, Product AHF 130, are as follows:
8- What is the percentage of the total variable costs per
unit associated with Product AHF 130 with respect to
total cost?
• A) 85.3%
• B) 88.9%
• C) 80.7%
• D) 90%
8- What is the percentage of the total variable costs per
unit associated with Product AHF 130 with respect to
total cost?
• A) 85.3%
• B) 88.9%
• C) 80.7%
• D) 90%
9- Manufacturing overhead costs are also referred to as
________.
• A) indirect manufacturing costs
• B) prime costs
• C) direct manufacturing costs
• D) direct material
•
9- Manufacturing overhead costs are also referred to as
________.
• A) indirect manufacturing costs
• B) prime costs
• C) direct manufacturing costs
• D) direct material
•
10- A written order sent to inform the purchasing
department of a need for materials is called a:
A) Purchase order
B) Receiving report
C) Purchase requisition
D) Materials requisition form
10- A written order sent to inform the purchasing
department of a need for materials is called a:
A) Purchase order
B) Receiving report
C) Purchase requisition
D) Materials requisition form
11- When a manufacturing company uses direct
materials, it assigns the cost by debiting:
• A) Direct materials.
• B) Work in process inventory.
• C) Manufacturing overhead.
• D) Materials inventory.
11- When a manufacturing company uses direct
materials, it assigns the cost by debiting:
• A) Direct materials.
• B) Work in process inventory.
• C) Manufacturing overhead.
• D) Materials inventory.
12- Vacation pay for factory workers should be charged
to:
• A) Work in process.
• B) Administrative expense.
• C) Direct labor.
• D) Factory overhead.
12- Vacation pay for factory workers should be charged
to:
• A) Work in process.
• B) Administrative expense.
• C) Direct labor.
• D) Factory overhead.
13- Materials issued are priced at the latest purchase in:
• A) FIFO
• B) LIFO
• C) standard price
• D) weighted average
13- Materials issued are priced at the latest purchase in:
• A) FIFO
• B) LIFO
• C) standard price
• D) weighted average
14- Economic order quantity refers to:
• A) quantity to be used economically
• B) the quantity of materials to be maintained
• C) the quantity of materials to be reordered
• D) the quantity of materials to be ordered at a time
14- Economic order quantity refers to:
• A) quantity to be used economically
• B) the quantity of materials to be maintained
• C) the quantity of materials to be reordered
• D) the quantity of materials to be ordered at a time
15- Overtime represents
• A) the time worked beyond normal working hours.
• B) the time worked beyond 12 noon everyday.
• C) the time worked continuously without break.
• D) none of these.
15- Overtime represents
• A) the time worked beyond normal working hours.
• B) the time worked beyond 12 noon everyday.
• C) the time worked continuously without break.
• D) none of these.
16- Predetermined overhead rate is computed by using
the formula:
A) standard overhead/standard base
B) actual overhead/standard base
C) estimated overhead for the budget period/ estimated
base
D) estimated overhead/actual base
16- Predetermined overhead rate is computed by using
the formula:
A) standard overhead/standard base
B) actual overhead/standard base
C) estimated overhead for the budget period/ estimated
base
D) estimated overhead/actual base
• ABC manufacturing company adopted a Modified Wage Plan.
Factory workers are paid $.48 per unit, with a minimum
guaranteed wage of $6 per hour for up to 250 units per week.
The report on employee’s productivity for the week ending
December 16, 2022, follows. Each employee worked a total of
20 hours that week.
17- The amount charged to Work in process is:
A) $14.4
B) $499.2
C) $484.8
D) $120
17- The amount charged to Work in process is:
A) $14.4
B) $499.2
C) $484.8
D) $120
18- The amount charged to factory overhead is:
A) $14.4
B) $499.2
C) $484.8
D) $480
18- The amount charged to factory overhead is:
A) $14.4
B) $499.2
C) $484.8
D) $120
19- The amount charged to payroll payable is:
A) $14.4
B) $499.2
C) $484.8
D) $480
19- The amount charged to payroll payable is:
A) $14.4
B) $499.2
C) $484.8
D) $480