Exam 1 ACC 241 ASU 2024
QUESTIONS AND ANSWERS
100%VERIFIED
Unit‐level activities - ANSWER - activities occur every time a service is performed or
a product is made.
The costs of direct materials, direct labor, and machine maintenance are examples
of unit‐level activities.
Batch‐level activities - ANSWER - level activities are costs incurred every time a
group (batch) of units is produced or a series of steps is performed.
Purchase orders, machine setup, and quality tests are examples of batch‐level
activities.
Product‐line activities - ANSWER - are those activities that support an entire product
line but not necessarily each individual unit.
Examples of product‐line activities are engineering changes made in the assembly
line, product design changes, and warehousing and storage costs for each product
line.
Facility support activities - ANSWER - are necessary for development and production
to take place.
These costs are administrative in nature and include building depreciation, property
taxes, plant security, insurance, accounting, outside landscape and maintenance,
and plant management's and support staff's salaries.
1. Costs can be either direct or indirect, depending upon the cost object. - ANSWER -
T
, 2. Advertising is a product cost as long as it promotes specific products. - ANSWER -
f
If the finished goods inventory decreases between the beginning and the end of a
period, then the cost of goods
manufactured for the period is larger than the cost of goods sold - ANSWER - f
4. Predetermined overhead rates are based on actual cost and activity data. -
ANSWER - f
Appraisal costs - ANSWER - Appraisal costs are associated with measuring and
monitoring activities related to quality.
These costs are associated with the suppliers' and customers' evaluation of
purchased materials, processes, products, and services to ensure that they conform
to specifications
Internal failure costs - ANSWER - costs associated with defects found before the
customer receives the product or service
external failure costs - ANSWER - costs associated with defects found after the
customer receives the product or service
In activity-based costing, a separate activity rate (i.e., predetermined overhead
rate) is computed for each activity
cost pool by dividing the estimated overhead cost in the activity cost pool by the
total expected activity for the
activity cost pool. - ANSWER - t
6. Ethics deals with the moral quality, fitness, or propriety of a course of action that
may injure or benefit people. I
can make an ethical decision while taking the exam by:
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