ACC 302 12 edition Questions With Complete Solutions
1
Multiple Choice Questions
16. Hal Etoesus currently works as the fry guy at Burger Breath
Drive Thru but is thinking of quitting his job to attend college
full time next semester. Which of the following would be
considered an opportunity cost in this decision?
A) the cost of the textbooks
B) the cost of the cola that Hal will consume during class
C) Hal's lost wages at Burger Breath
D) both A and B above Correct Answers C Level: Easy
1
10. The first-stage allocation in activity-based costing is the
process by which overhead costs are assigned to activity cost
pools. Correct Answers True Level: Easy
1
100. What is the net operating income for the month under
variable costing?
A) $10,200
B) $27,000
C) ($6,300)
D) $16,800 Correct Answers D Level: Medium
,1
101. Dizzy donates $2 of every entrance fee to a local homeless
shelter. This charitable contribution would best be described as
a:
A) fixed cost
B) mixed cost
C) step-variable cost
D) true variable cost Correct Answers D Level: Easy
1
102. What is the net operating income for the month under
variable costing?
A) ($21,200)
B) $7,600
C) $7,800
D) ($200) Correct Answers D Level: Medium
1
106. Under absorption costing, the unit product cost is:
A) $19
B) $13
C) $10 D) $14 Correct Answers B Level: Easy
1
109. The carrying value on the balance sheet of the ending
inventory under variable costing would be:
,A) $1,400 higher than under absorption costing.
B) $1,400 less than under absorption costing.
C) $800 less than under absorption costing.
D) the same as under absorption costing. Correct Answers C
Level: Medium
1
122. What is the total period cost for the month under the
absorption costing approach?
A) $154,000
B) $304,200
C) $458,200
D) $84,700 Correct Answers A Level: Hard
1
124. What is the total period cost for the month under the
absorption costing approach?
A) $102,800
B) $66,000
C) $36,800 D) $48,400 Correct Answers B Level: Hard
1
128. What is the total period cost for the month under the
absorption costing approach?
A) $60,200
B) $8,600
C) $236,200 D) $176,000 Correct Answers A Level: Hard
, 1
132. What is the total period cost for the month under the
absorption costing approach?
A) $1,600
B) $43,700
C) $11,200 D) $54,900 Correct Answers C Level: Hard
1
17. A process cost system is employed in those situations where:
A) many different products, jobs, or batches of production are
being produced each
period.
B) where manufacturing involves a single, homogeneous
product that flows evenly through the production process on a
continuous basis.
C) a service is performed such as in a law firm or an accounting
firm.
D) full or absorption cost approach is not employed. Correct
Answers B Level: Easy
1
17. Managerial accounting:
A) is more future oriented than financial accounting.
B) tends to summarize information more than financial
accounting C) is primarily concerned with providing
information to external users.
D) is more concerned with precision than timeliness. Correct
Answers A Level: Easy
1
Multiple Choice Questions
16. Hal Etoesus currently works as the fry guy at Burger Breath
Drive Thru but is thinking of quitting his job to attend college
full time next semester. Which of the following would be
considered an opportunity cost in this decision?
A) the cost of the textbooks
B) the cost of the cola that Hal will consume during class
C) Hal's lost wages at Burger Breath
D) both A and B above Correct Answers C Level: Easy
1
10. The first-stage allocation in activity-based costing is the
process by which overhead costs are assigned to activity cost
pools. Correct Answers True Level: Easy
1
100. What is the net operating income for the month under
variable costing?
A) $10,200
B) $27,000
C) ($6,300)
D) $16,800 Correct Answers D Level: Medium
,1
101. Dizzy donates $2 of every entrance fee to a local homeless
shelter. This charitable contribution would best be described as
a:
A) fixed cost
B) mixed cost
C) step-variable cost
D) true variable cost Correct Answers D Level: Easy
1
102. What is the net operating income for the month under
variable costing?
A) ($21,200)
B) $7,600
C) $7,800
D) ($200) Correct Answers D Level: Medium
1
106. Under absorption costing, the unit product cost is:
A) $19
B) $13
C) $10 D) $14 Correct Answers B Level: Easy
1
109. The carrying value on the balance sheet of the ending
inventory under variable costing would be:
,A) $1,400 higher than under absorption costing.
B) $1,400 less than under absorption costing.
C) $800 less than under absorption costing.
D) the same as under absorption costing. Correct Answers C
Level: Medium
1
122. What is the total period cost for the month under the
absorption costing approach?
A) $154,000
B) $304,200
C) $458,200
D) $84,700 Correct Answers A Level: Hard
1
124. What is the total period cost for the month under the
absorption costing approach?
A) $102,800
B) $66,000
C) $36,800 D) $48,400 Correct Answers B Level: Hard
1
128. What is the total period cost for the month under the
absorption costing approach?
A) $60,200
B) $8,600
C) $236,200 D) $176,000 Correct Answers A Level: Hard
, 1
132. What is the total period cost for the month under the
absorption costing approach?
A) $1,600
B) $43,700
C) $11,200 D) $54,900 Correct Answers C Level: Hard
1
17. A process cost system is employed in those situations where:
A) many different products, jobs, or batches of production are
being produced each
period.
B) where manufacturing involves a single, homogeneous
product that flows evenly through the production process on a
continuous basis.
C) a service is performed such as in a law firm or an accounting
firm.
D) full or absorption cost approach is not employed. Correct
Answers B Level: Easy
1
17. Managerial accounting:
A) is more future oriented than financial accounting.
B) tends to summarize information more than financial
accounting C) is primarily concerned with providing
information to external users.
D) is more concerned with precision than timeliness. Correct
Answers A Level: Easy
