ACCT 505 WEEK 4 MIDTERM EXAM ANSWERS

ACCT 505 WEEK 4 MIDTERM EXAM ANSWERS 1. Question : (TCO A) Wages paid to an assembly line worker in a factory are a : Prime Cost YES.....Conversion Cost NO. Prime Cost YES.....Conversion Cost YES. Prime Cost NO....Conversion Cost NO. Prime Cost NO.....Conversion Cost YES. : Chapter 2 2. Question : (TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n) : period cost. incremental cost. opportunity cost. None of the above : Chapter 2 3. Question : (TCO A) Depreciation of office buildings and office equipment is also known as : variable costs. conversion costs. product costs. period costs. : Chapter 2 4. Question : (TCO A) When the activity level is expected to increase within the relevant range, what effects would be anticipated with respect to each of the following? : Fixed costs per unit increase and variable costs per unit