Exam (elaborations)
Exam 1 - NAU ACC 256- Questions and Answers
- Course
- Institution
Exam 1 - NAU ACC 256- Questions and Answers
[Show more]
Content preview
Exam 1 - NAU ACC 256- Questions and Answersvariable costs Correct Ans-Change in total in direct proportion to changes in volume (direct
materials, direct labor for hourly employees)
Product Costs Correct Ans-Incurred by manufacturers to produce their products or by
merchandisers to purchase their products (costs are incurred in the production or purchases
function of the value chain)
Period costs: Correct Ans-Do not relate to manufacturing or purchasing a product; includes
any cost not treated as inventory; incurred in all other functions of the value chain including
R&D, design, customer service, marketing, distribution, sales commissions, operating / SGA
(selling, general & administrative) expenses
Differential costs Correct Ans-Difference between two alternative courses of action
Relevant costs: Correct Ans-Pricing plus additional considerations
Irrelevant costs: Costs that would not be affected by a management decision
Sunk costs: Correct Ans-Costs already incurred (should be ignored and are always irrelevant)
Process costing Correct Ans-Used for similar products that are produced in large batches
(bottled water, salsa, bags of chips)
, Job Costing Correct Ans-Used for unique, custom items produced in small batches (airplanes,
furniture, individual chalets)
Unit-level activities Correct Ans-Activities and costs incurred for every unit (inspecting and
packaging each unit produced)
Batch-level activities Correct Ans-Activities and costs incurred for every batch, regardless of
number of units (machine set-up)
Product-level activities Correct Ans-Activities and costs incurred for a particular product,
regardless of number of units or batches (lease payments on equipment for manufacturing a
particular product)
Facility-level activities Correct Ans-Activities and costs incurred no matter how many units,
batches, or products are produced (depreciation, insurance, property tax, plant maintenance)
Prevention Costs: Correct Ans-Costs incurred to avoid producing poor-quality goods or
services
Appraisal Costs: Correct Ans-Costs incurred to detect poor-quality goods or services
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamRoom. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72042 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now