Trueg/gFalsegQuestions
1. Directgmaterialgcostsgareggenerallygvariablegcosts.
TRUE
AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AIC
PAgFN:gMeasurementg Bloom's:
gKnowledge
LearninggObjective:g02-
01gIdentifygandggivegexamplesgofgeachgofgthegthreegbasicgmanufacturinggcostgcategoriesg LearninggObjective:g
02-03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gEasy
2. Propertygtaxesgandginsurancegpremiumsgpaidgongagfactorygbuildinggaregexamplesgo
fgmanufacturinggoverhead.
TRUE
AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AIC
PAgFN:gMeasurementg Bloom's:
gKnowledge
LearninggObjective:g02-
01gIdentifygandggivegexamplesgofgeachgofgthegthreegbasicgmanufacturinggcostgcategoriesg Level:gEasy
3. Manufacturinggoverheadgcombinedgwithgdirectgmaterialsgisgknowngasgconversiongcost.
FALSE
AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AIC
PAgFN:gMeasurementg Bloom's:
gKnowledge
LearninggObjective:g02-
01gIdentifygandggivegexamplesgofgeachgofgthegthreegbasicgmanufacturinggcostgcategoriesg Level:gEasy
,4. Allgcostsgincurredgingagmerchandisinggfirmgaregconsideredgtogbegperiodgcosts.
FALSE
AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AIC
PAgFN:gMeasurementg Bloom's:
gKnowledge
LearninggObjective:g02-
02gDistinguishgbetweengproductgcostsgandgperiodgcostsgandggivegexamplesgofgeachg Level:gEasy
5. Depreciationgisgalwaysgconsideredgagproductgcostgforgexternalgfinancialgreportin
ggpurposesgingagmanufacturinggfirm.
FALSE
AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AIC
PAgFN:gMeasurementg Bloom's:
gComprehension
LearninggObjective:g02-
02gDistinguishgbetweengproductgcostsgandgperiodgcostsgandggivegexamplesgofgeachg Level:gMedium
6. Ingexternalgfinancialgreports,gfactorygutilitiesgcostsgmaygbegincludedgingangassetgaccou
ntgongthegbalancegsheetgatgthegendgofgthegperiod.
TRUE
AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AIC
PAgFN:gMeasurementg Bloom's:
gComprehension
LearninggObjective:g02-
02gDistinguishgbetweengproductgcostsgandgperiodgcostsgandggivegexamplesgofgeachg Level:gHard
7. Advertisinggcostsgaregconsideredgproductgcostsgforgexternalgfinancialgreportsgbecaus
egtheygaregincurredgingordergtogpromotegspecificgproducts.
FALSE
AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AIC
PAgFN:gMeasurementg Bloom's:
gComprehension
LearninggObjective:g02-
02gDistinguishgbetweengproductgcostsgandgperiodgcostsgandggivegexamplesgofgeachg Level:gMedium
,8. Sellinggandgadministrativegexpensesgaregproductgcostsgunderggenerallygaccepte
dgaccountinggprinciples.
FALSE
AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AIC
PAgFN:gMeasurementg Bloom's:
gKnowledge
LearninggObjective:g02-
02gDistinguishgbetweengproductgcostsgandgperiodgcostsgandggivegexamplesgofgeachg Level:gEasy
9. Agvariablegcostgisgagcostgwhosegcostgpergunitgvariesgasgthegactivityglevelgrisesgandgfalls.
FALSE
AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AIC
PAgFN:gMeasurementg Bloom's:
gKnowledge
LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gEasy
10. Whengtheglevelgofgactivitygincreases,gtotalgvariablegcostgwillgincrease.
TRUE
AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AIC
PAgFN:gMeasurementg Bloom's:
gKnowledge
LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gEasy
11. Agdecreasegingproductiongwillgordinarilygresultgingangincreasegingfixedgproductiongcost
sgpergunit.
TRUE
AACSB:gAnalytic
AICPAgBB:gCriticalgThinkingg A
ICPAgFN:gMeasurementg Bloom
's:gKnowledge
LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gEasy
, 12. Automationgresultsgingagshiftgawaygfromgvariablegcostsgtowardgmoregfixedgcosts.
TRUE
AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AIC
PAgFN:gMeasurementg Bloom's:
gKnowledge
LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gEasy
13. Ingordergforgagcostgtogbegvariablegitgmustgvarygwithgeithergunitsgproducedgorgunitsgsold.
FALSE
AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AIC
PAgFN:gMeasurementg Bloom's:
gComprehension
LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gMedium
14. Thegconceptgofgthegrelevantgrangegdoesgnotgapplygtogfixedgcosts.
FALSE
AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AIC
PAgFN:gMeasurementg Bloom's:
gKnowledge
LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gEasy
15. Indirectgcosts,gsuchgasgmanufacturinggoverhead,garegalwaysgfixedgcosts.
FALSE
AACSB:gReflectivegThinkingg AI
CPAgBB:gCriticalgThinkingg AIC
PAgFN:gMeasurementg Bloom's:
gComprehension
LearninggObjective:g02-
03gUnderstandgcostgbehaviorgpatternsgincludinggvariablegcosts;gfixedgcosts;gandgmixedgcostsg Level:gMedium