ACCT 2000 Lowe-Ardoin exam Questions and
Correct Detailed Answers (Verified Answers)
What are the 3 types of manufacturing costs? - ✔✔direct materials, direct
labor, manufacturing overhead
What are the 3 categories of manufacturing overhead? - ✔✔Indirect materials,
indirect labor, and other manufacturing costs
(also known as manufacturing costs). Incurred at the factory. These are considered
inventoriable costs as they are originally placed on the balance sheet and moved to the
income statement when goods are sold - ✔✔Product cost
matched with revenues of a specific time period and charged directly to expense. -
✔✔Period cost
Cost of goods sold formula - ✔✔Beg finished inv.
+cost of goods manufactured
-ending finished goods inv.
=cost of goods sold
cost of goods manufactured formula - ✔✔Beg. WIP inv.
+total manufacturing costs
=Total cost of WIP
-ending WIP inv.
=cost of goods manufactured
What are the three types of inventory on a balance sheet? - ✔✔Finished goods, Work
in Process (WIP), and raw materials
, The function that pertains to keeping the activities of the enterprise on track is:
- ✔✔Controlling
For a manufacturing company, which of the following is an example of a period cost rather
than a product cost?
depreciation on factory equipment
wages of salesperson
wages of machine operator
insurance on factory equipment - ✔✔wages of salesperson
The salary of a plant manger would be considered a - ✔✔Product cost NOT a Period cost
per unit cost remains the same with changes in activity. In total vary directly
and proportionately with changes in activity. - ✔✔variable cost
in total remain the same with changes in activity. Per unit costs vary inversely with changes
in activity - ✔✔Fixed cost
are part fixed and part variable - ✔✔mixed costs
What are the 3 classifications of costs - ✔✔fixed, variable, mixed
in fixed cost, unit cost vary _________ with changes in activity - ✔✔inversely
uses the total costs incurred at the high and low levels of activity to classify mixed costs into
fixed and variable components. - ✔✔High-low Method
CVP Income statement formula - ✔✔Sales
Correct Detailed Answers (Verified Answers)
What are the 3 types of manufacturing costs? - ✔✔direct materials, direct
labor, manufacturing overhead
What are the 3 categories of manufacturing overhead? - ✔✔Indirect materials,
indirect labor, and other manufacturing costs
(also known as manufacturing costs). Incurred at the factory. These are considered
inventoriable costs as they are originally placed on the balance sheet and moved to the
income statement when goods are sold - ✔✔Product cost
matched with revenues of a specific time period and charged directly to expense. -
✔✔Period cost
Cost of goods sold formula - ✔✔Beg finished inv.
+cost of goods manufactured
-ending finished goods inv.
=cost of goods sold
cost of goods manufactured formula - ✔✔Beg. WIP inv.
+total manufacturing costs
=Total cost of WIP
-ending WIP inv.
=cost of goods manufactured
What are the three types of inventory on a balance sheet? - ✔✔Finished goods, Work
in Process (WIP), and raw materials
, The function that pertains to keeping the activities of the enterprise on track is:
- ✔✔Controlling
For a manufacturing company, which of the following is an example of a period cost rather
than a product cost?
depreciation on factory equipment
wages of salesperson
wages of machine operator
insurance on factory equipment - ✔✔wages of salesperson
The salary of a plant manger would be considered a - ✔✔Product cost NOT a Period cost
per unit cost remains the same with changes in activity. In total vary directly
and proportionately with changes in activity. - ✔✔variable cost
in total remain the same with changes in activity. Per unit costs vary inversely with changes
in activity - ✔✔Fixed cost
are part fixed and part variable - ✔✔mixed costs
What are the 3 classifications of costs - ✔✔fixed, variable, mixed
in fixed cost, unit cost vary _________ with changes in activity - ✔✔inversely
uses the total costs incurred at the high and low levels of activity to classify mixed costs into
fixed and variable components. - ✔✔High-low Method
CVP Income statement formula - ✔✔Sales
