Question 1 1. Capital Expenditures are costs that are directly charged as an expense because it can benefit only the current period. In regression analysis, the variable that is being predicted is known as the slope of the line. Both statements are false o Only statement II is true O Only statement lis true Both statements are true Question 2 1. A cost object is often a product or a department for which costs are accumulated or measured. Direct expenses are expenses which can be directly allocated to a particular product, cost center or unit service. II. O Only statement is true O Both statements are true O Only statement Il is true O Both statements are false Question 3 I. II. Ordering costs include salary of storeroom keeper. EOQ increases when there is a high demand. Both statements are true Only statement is true O Only statement Il is true O Both statements are false Question 4 1. The two basic issues in inventory are how much to order and when to order If ordering decreases by placing large orders, the carrying costs will also decrease. II. Both statements are true Only statement is true Both statements are false Only statement is true Question 5 1. Wages paid to factory supervisors are considered as direct labor. In Key Reorder System, each worker is given a key which represents worker's identification number. II. O Both statements are false O Both statements are true Only statement Il is true O Only statement I is true Question 6 1. The example of normal idle time is lunch break time. The fringe benefits such as sick leave is charged to the factory overhead control account. II. o Only statement II is true Both statements are false Only statement is true Both statements are true Question 7 1. Plant-wide overhead rate is appropriate to use, if the company manufactures similar products. Producing department is responsible in the actual manufacture of products. II. O Only statement Il is true Both statements are true Both statements are false O Only statement is true Question 8 1. Classifying factory overhead costs based on behavior is one way to control such costs. The sewing department is an example of servicing department II. Both statements are false O Both statements are true O Only statement I is true O Only statement Il is true Question 9 1. The term "normal costing" refers to the use of job order costing system Under normal job-order costing system, factory overhead is applied using predetermined rate times actual input II. Both statements are false O Both statements are true Only statement ll is true Only statement is true Question 10 I One reason why factory overhead may be over-applied is that the estimated factory overhead may be too high. Non-manufacturing costs are expensed outright. II. o Only statement II is true O Both statements are false Only statement is true Both statements are true Question 11 It is a wage plan calculated by multiplying the number of units produced by a specified rate per unit. None of the choices Piece based wage plan Time based wage plan O Modified based wage plan Question 12 The following are examples of the service department, except: O Sewing Personnel O Cafeteria Inspection Question 16 The accounting records of ABC Corporation revealed the following costs: direct materials used, P750,000; direct labor, P1,275,000; factory overhead, P1.125,000; and selling and administrative expenses, P660,000. ABC product costs total: OP2.490,000 O P3,150,000 O P2,685.000 OP3.810,000 as, Question 17 2 pts The accounting records of ABC Corporation revealed the following costs direct materials used, P750,000, direct labor. P1.275.000, factory overhead P1.125,000, and -selling and administrative expenses, P660,000. The total period cost is P1.410.000 P660.000 P3.810.000 P2.685.000 Question 18 2 pts The accounting records of ABC Corporation revealed the following costs: direct materials used, P750,000, direct labor, P1.275.000; factory overhead, P1.125.000, and seling and administrative expenses, P660,000. The total conversion costs are OP1410.000 P2.400.000 TOP175.000 P2.025.000
