Description

ACCT 505 Week 4 Midterm (Version 3)

Page One

1. (TCO A) Wages paid to an assembly line worker in a factory are a:
2. (TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n):
3. (TCO A) Property taxes on a company’s factory building would be classified as a(n):
4. (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?
5. Fixed Cost Per Unit Variable Cost Per Unit
6. (TCO F) Which of the following statements is true? I. Overhead application may be made slowly as a job is worked on. II. Overhead application may be made in a single application at the time of completion of the job. III. Overhead application should be made to any job not completed at year-end in order to properly value the work in process inventory.
7. (TCO F) Which of the following statements about process costing system is incorrect?
8. (TCO F) Equivalent units for a process costing system using the FIFO method would be equal to:
9. (TCO B) The contribution margin ratio always increases when the:
10. (TCO B) Which of the following would not affect the break-even point?
11. (TCO E) In an income statement prepared using the variable costing method, variable selling and administrative expenses would:

Page Two

1. (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larden Corporation for the just completed year.
2. (TCO F) The Illinois Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below:
3. (TCO B) Drake Company’s income statement for the most recent year appears below:
4.  (TCO E) The Dean Company produces and sells a single product. The following data refer to the year just completed: