1.) Which of the following is the best example of a mixed cost?

Select one:

A.Salary of a controller

B.Utilities

C.Hourly wage of an administrative assistant

D.Compensation of sales person consisting of a base salary and sales commission.

2.) If estimated factory overhead cost is $35,000 and activity base is estimated at 5,000 direct labor hours. What is the predetermined overhead rate?

Select one:

A.$5

B.$4

C.$6

D.$7

3.) John works as a Lead Sales Associate and earns a base monthly salary of $5,000 plus 5% commission of his achieved sales per month. His compensation is an example of:

Select one:

A.Variable cost

B.Fixed cost

C.Mixed cost

D.Prime cost

4.) Which of the following is considered a factory overhead cost?

Select one:

A.Direct materials

B.Direct labor

C.Factory power

D.All of the above

5.) Which of the following represents prime costs?

Select one:

A.Direct materials and direct labor

B.Direct materials and indirect labor

C.Direct materials and factory overhead

D.Indirect labor and selling expenses

6.) Direct materials, direct labor, and factory overhead represent which of the following cost?

Select one:

A.Manufacturing costs

B.Period costs

C.All of the above

D.None of the above

7.) The cost of direct materials, direct labor, and factory overhead that have entered the manufacturing process but not yet completed is:

Select one:

A.Materials inventory

B.Finished goods inventory

C.Work in process inventory

D.None of the above

8.) The cost of directand indirect materials that have not yet entered the manufacturing process is:

Select one:

A.Materials inventory

B.Finished goods inventory

C.Work in process inventory

D.None of the above

9.) Manufacturing costs consist of Direct materials, direct labor, and selling expenses.

Select one:

True

False

10.) A job order cost system provides product costs for each department whereas a process cost system provides costs for each quantity of product manufactured.

Select one:

True

False

11.) Direct labor and direct materials represent conversion costs.

Select one:

True

False

12.) At break-even point, expenses are greater than sales.

Select one:

True

False

13.) Period costs consist of direct materials and selling expenses.

Select one:

True

False

14.) Finished goods inventory consists of completed products.

Select one:

True

False

15.) Straight-line depreciation is an example of variable overhead cost.

Select one:

True

False

16.) A production cost where the cost per unit variesinverselyto the change in the activity base is a:

Select one:

A.Variable cost

B.Fixed cost

C.Mixed cost

D.Conversion cost

17.) Contribution margin is:

Select one:

A.Excess of variable costs over sales

B.Excess of direct labor over materials costs

C.Excess of Fixed costs over variable costs

D.Excess of sales over variable cots

18.) Costs where cost per unit remains the same regardless of changes in the activity base are:

Select one:

A.Fixed Costs

B.Variable costs

C.Mixed costs

D.None of the above

19.) At break-even point, revenue = cost.

Select one:

True

False

20.) Product costs are selling and administrative expenses booked to the income statement in the period incurred.

Select one:

True

False