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ACC 255-FINAL EXAM 2026 LATEST
QUESTIONS AND ANSWERS| ACE YOUR
GRADES.
A cost driver is a factor or activity that has a direct cause-effect
relationship with the resources consumed.
t/f - correct answer -true
What overhead allocation basis is used by many companies with
automated manufacturing processes to reduce product cost
distortions? - correct answer -machine hours
As the complexity of a product's manufacturing operation
increases, the number of activities and cost drivers used in an
activity-based cost system will likely
A.increase. B.stay about same. C.decrease. D.vary randomly. -
correct answer -increase
Activity-based costing is most appropriate to use when labor costs
are a(n) ___________ proportion of total product costs and the
manufacturing process is __________. - correct answer -
decreasing complex
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When is it appropriate to use direct labor as a basis for assigning
overhead costs to products? - correct answer -direct labor
constitutes as a significant part of total product automated
Which of the following is not one of the four steps involved in
calculating unit costs under activity-based costing?
A.Assign manufacturing overhead costs for each cost pool to
products, using the overhead rates. B.Identify the cost driver that
has a minor correlation to the costs accumulated in the activity
cost pool. C.Identify and classify the major activities involved in
the manufacture of specific products, and allocate manufacturing
overhead costs to the appropriate cost pools. D.Compute the
overhead rate per cost driver. - correct answer -Identify the cost
driver that has a minor correlation to the costs accumulated in the
activity cost pool
Which of the following would not be an overhead activity cost
pool?
A.Shipping B.Direct materials C.Packaging D.Inspecting and
testing - correct answer -direct materials
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Which of the following is an overhead activity cost pool for a
manufacturer?
A.Direct labor B.Setting up machines C.Direct materials D.All of
these are considered overhead activity cost pools for a
manufacturer. - correct answer -setting up machines
For which of the following activities will direct labor hours and
direct labor cost be an appropriate cost driver?
A.Drilling oil wells B.Equipment setups C.Engineering changes
D.Painting - correct answer -painting
An example of a mixed cost is
A.direct materials. B.supervisory salaries. C.utility costs.
D.property taxes. - correct answer -utility cost
Costs that change in total but not proportionately with changes in
the activity level are
A.fixed costs. B.mixed costs. C.semifixed costs. D.variable costs.
- correct answer -mixed costs
ACC 255-FINAL EXAM 2026 LATEST
QUESTIONS AND ANSWERS| ACE YOUR
GRADES.
A cost driver is a factor or activity that has a direct cause-effect
relationship with the resources consumed.
t/f - correct answer -true
What overhead allocation basis is used by many companies with
automated manufacturing processes to reduce product cost
distortions? - correct answer -machine hours
As the complexity of a product's manufacturing operation
increases, the number of activities and cost drivers used in an
activity-based cost system will likely
A.increase. B.stay about same. C.decrease. D.vary randomly. -
correct answer -increase
Activity-based costing is most appropriate to use when labor costs
are a(n) ___________ proportion of total product costs and the
manufacturing process is __________. - correct answer -
decreasing complex
, Page | 2
When is it appropriate to use direct labor as a basis for assigning
overhead costs to products? - correct answer -direct labor
constitutes as a significant part of total product automated
Which of the following is not one of the four steps involved in
calculating unit costs under activity-based costing?
A.Assign manufacturing overhead costs for each cost pool to
products, using the overhead rates. B.Identify the cost driver that
has a minor correlation to the costs accumulated in the activity
cost pool. C.Identify and classify the major activities involved in
the manufacture of specific products, and allocate manufacturing
overhead costs to the appropriate cost pools. D.Compute the
overhead rate per cost driver. - correct answer -Identify the cost
driver that has a minor correlation to the costs accumulated in the
activity cost pool
Which of the following would not be an overhead activity cost
pool?
A.Shipping B.Direct materials C.Packaging D.Inspecting and
testing - correct answer -direct materials
, Page | 3
Which of the following is an overhead activity cost pool for a
manufacturer?
A.Direct labor B.Setting up machines C.Direct materials D.All of
these are considered overhead activity cost pools for a
manufacturer. - correct answer -setting up machines
For which of the following activities will direct labor hours and
direct labor cost be an appropriate cost driver?
A.Drilling oil wells B.Equipment setups C.Engineering changes
D.Painting - correct answer -painting
An example of a mixed cost is
A.direct materials. B.supervisory salaries. C.utility costs.
D.property taxes. - correct answer -utility cost
Costs that change in total but not proportionately with changes in
the activity level are
A.fixed costs. B.mixed costs. C.semifixed costs. D.variable costs.
- correct answer -mixed costs
