1Which of the following costs is often important in decision making, but is omitted from conventional accounting records?

A. Fixed cost. B. Sunk cost. C. Opportunity cost. D. Indirect cost.

2. The advertising costs incurred by Pepsi to air its commercials during the annual hockey season can best be described as a:

A. Variable cost. B. Fixed cost. C. Prime cost. D. Conversion cost.

3. Last month, when 10,000 units of a product were manufactured, the cost per unit was $60. At this level of activity, variable costs were 50% of total unit costs. If 10,500 units are manufactured next month and cost behaviour patterns remain unchanged, how will costs be affected? A. Total variable costs will remain unchanged. B. Fixed costs will increase in total. C. Variable cost per unit will increase. D. Total cost per unit will decrease.

4. How would the wages of factory maintenance personnel usually be classified? A. Direct labour and manufacturing overhead. B. Indirect labour and manufacturing overhead. C. Direct labour and period cost. D. Indirect labour and period cost

5. Rossiter Company failed to record a sale on credit at the end of the year, although the reduction in finished goods inventories was correctly recorded when the goods were shipped to the customer. Which one of the following statements is correct? A. Accounts receivable was not affected, inventory was not affected, sales were understated, and cost of goods sold was understated. B. Accounts receivable was understated, inventory was overstated, sales were understated, and cost of goods sold was overstated. C. Accounts receivable was not affected, inventory was understated, sales were understated, and cost of goods sold was understated. D. Accounts receivable was understated, inventory was not affected, sales were understated, and cost of goods sold was not affected.

6. Which of the following companies is most likely to use a job-order costing system rather than a process costing system? (remember, only pick one option) A. Fast food restaurant B. Shipbuilder C. Crude oil refinery D. Candy maker