ACC 252: EXAM 1 QUESTIONS AND
ANSWERS 100% PASS 2026 EDITION
1) The cost of fire insurance for a manufacturing plant is generally considered to be a:
A. product cost.
B. period cost.
C. variable cost.
D. all of the above. - ANS A. product cost.
2) In computing its predetermined overhead rate, Marple Company inadvertently left its indirect
labor costs out of the computation. This oversight will cause:
A. Manufacturing Overhead to be overapplied.
B. the Cost of Goods Manufactured to be understated.
C. the debits to the Manufacturing Overhead account to be understated.
D. the ending balance in Work in Process to be overstated. - ANS B. the Cost of Goods
Manufactured to be understated.
6) Choice of allocation base should be made based on:
@COPYRIGHT 2026 ALLRIGHTS RESERVED 1
ANSWERS 100% PASS 2026 EDITION
1) The cost of fire insurance for a manufacturing plant is generally considered to be a:
A. product cost.
B. period cost.
C. variable cost.
D. all of the above. - ANS A. product cost.
2) In computing its predetermined overhead rate, Marple Company inadvertently left its indirect
labor costs out of the computation. This oversight will cause:
A. Manufacturing Overhead to be overapplied.
B. the Cost of Goods Manufactured to be understated.
C. the debits to the Manufacturing Overhead account to be understated.
D. the ending balance in Work in Process to be overstated. - ANS B. the Cost of Goods
Manufactured to be understated.
6) Choice of allocation base should be made based on:
@COPYRIGHT 2026 ALLRIGHTS RESERVED 1
