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ACCOUNTING 252 EXAM 1 2026
LATEST QUESTIONS AND ANSWERS|
ACE YOUR GRADES.
Which of the following is an example of a period cost? A. Fabric
used to produce men's pants.
B.. Advertising cost for a new product campaign.
C. Factory supervisor's salary.
D. Monthly depreciation of production equipment - correct
answer -b
Within the relevant range, as the number of units produced
increases:
A. The variable cost per unit remains the same.
B. Fixed costs in total remain the same.
C. Variable costs increase in total.
D. All of these - correct answer -d
The distinction between indirect and direct costs depends on:
A. Whether a cost differs between alternatives.
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B. Whether a cost is variable or fixed.
C. Whether a cost is a product or a period cost.
D. Whether a cost can be easily traced to the cost object under
consideration - correct answer -d
A sunk cost is:
A. A cost that is planned to be incurred in the near future. B.
Irrelevant for decision making.
C. A cost connected with drilling for oil.
D. Affected by changes in the level of activity - correct answer -b
The potential benefit that is given up when one alternative is
selected over another is called:
A. A sunk cost.
B. An opportunity cost.
C. Both a sunk cost and an opportunity cost.
D. Neither a sunk cost nor an opportunity cost - correct answer -
b
Which of the terms below would make the following sentence
correct? Multiple overhead rate costing systems are usually more
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____________ than plantwide overhead rates - correct answer -
accurate and complex
Overapplied overhead would result if:
A. The plant was operated at less than normal capacity. B.
Overhead costs incurred were less than estimated overhead
costs.
C. Overhead costs incurred were less than overhead costs
charged to production.
D. Overhead costs incurred were greater than overhead charged
to production - correct answer -c
The following data have been recorded for recently completed
Job 450 on its job cost sheet. Direct materials cost was $3,044. A
total of 46 direct labor-hours and 104 machine-hours were worked
on the job. The direct labor wage rate is $15 per labor-hour. The
company applies manufacturing overhead on the basis of
machine-hours. The predetermined overhead rate is $13 per
machine-hour. The total cost for the job on its job cost sheet
would be: a. $4,332
B. $3,734
C. $3,072
D. $5,086 - correct answer -d
ACCOUNTING 252 EXAM 1 2026
LATEST QUESTIONS AND ANSWERS|
ACE YOUR GRADES.
Which of the following is an example of a period cost? A. Fabric
used to produce men's pants.
B.. Advertising cost for a new product campaign.
C. Factory supervisor's salary.
D. Monthly depreciation of production equipment - correct
answer -b
Within the relevant range, as the number of units produced
increases:
A. The variable cost per unit remains the same.
B. Fixed costs in total remain the same.
C. Variable costs increase in total.
D. All of these - correct answer -d
The distinction between indirect and direct costs depends on:
A. Whether a cost differs between alternatives.
, Page | 2
B. Whether a cost is variable or fixed.
C. Whether a cost is a product or a period cost.
D. Whether a cost can be easily traced to the cost object under
consideration - correct answer -d
A sunk cost is:
A. A cost that is planned to be incurred in the near future. B.
Irrelevant for decision making.
C. A cost connected with drilling for oil.
D. Affected by changes in the level of activity - correct answer -b
The potential benefit that is given up when one alternative is
selected over another is called:
A. A sunk cost.
B. An opportunity cost.
C. Both a sunk cost and an opportunity cost.
D. Neither a sunk cost nor an opportunity cost - correct answer -
b
Which of the terms below would make the following sentence
correct? Multiple overhead rate costing systems are usually more
, Page | 3
____________ than plantwide overhead rates - correct answer -
accurate and complex
Overapplied overhead would result if:
A. The plant was operated at less than normal capacity. B.
Overhead costs incurred were less than estimated overhead
costs.
C. Overhead costs incurred were less than overhead costs
charged to production.
D. Overhead costs incurred were greater than overhead charged
to production - correct answer -c
The following data have been recorded for recently completed
Job 450 on its job cost sheet. Direct materials cost was $3,044. A
total of 46 direct labor-hours and 104 machine-hours were worked
on the job. The direct labor wage rate is $15 per labor-hour. The
company applies manufacturing overhead on the basis of
machine-hours. The predetermined overhead rate is $13 per
machine-hour. The total cost for the job on its job cost sheet
would be: a. $4,332
B. $3,734
C. $3,072
D. $5,086 - correct answer -d
