4 Sets ACCT505 Midterm Exam 2021

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QUESTION 1: Wages paid to a timekeeper in a factory are a:  Prime Cost YES.....Conversion Cost NO  Prime Cost YES.....Conversion Cost YES  Prime Cost NO....Conversion Cost NO  Prime C... ost NO.....Conversion Cost YES QUESTION 2: A cost incurred in the past that is not relevant to any current decision is classified as a(n):  period cost.  opportunity cost.  sunk cost.  differential cost. QUESTION 3: Inventoriable costs are also known as:  variable costs  conversion costs  product costs  fixed costs QUESTION 4: When the activity level is expected to decline within the relevant range, what effects would be anticipated with respect to each of the following?  Fixed Costs per Unit Increase and Variable Costs per Unit Increase  Fixed Costs per Unit Increase and Variable Costs per Unit do not change  Fixed Costs per Unit do not change and Variable Costs per Unit do not change  Fixed Costs per Unit do not change and Variable Costs per Unit Increase QUESTION 5: When manufacturing overhead is applied to production, it is added to:  the Cost of Goods Sold account  the Raw Materials account  the Work in Process account  the Finished Goods inventory account QUESTION 6: Which of the following statements about process costing system is incorrect?  In a process costing system, each processing department has a work in process account  In a process costing system, equivalent units are separately computed for materials and for conversion costs [Show More]

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