Cost Classifications in Accounting Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. What are mixed costs composed of?

Question 2 2. Each month Susan pays a base price for her phone service. However, when she uses more data than is included in the base plan, she pays for each gigabyte that she goes over. This is an example of what type of cost?

Question 3 3. Which of the following statements about product costs is TRUE?

Question 4 4. It costs Chloe's Handbags $1.25 to make each handbag. The marketing is $1,500 and the warehouse is $2,500. What is the total average cost for 5,000 handbags?

Question 5 5. Raw materials would most likely be considered as what kind of cost?

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Question 6 6. What are indirect costs?

Question 7 7. Direct labor combined with manufacturing overhead costs are considered what type of costs?

Question 8 8. The owner of an old car just got new tires for $400. The brakes stop working, and it will cost $1,200 to fix them. The owner has to decide whether to continue spending money on an old car or scrap it, even if he loses $400. This is an example of what type of cost?

Question 9 9. What is marginal cost?

Question 10 10. You are changing the way that you do production. Instead of making 1300 units, you will be able to make 1450 units. The total costs will go from $125 to $140. What is the marginal cost?

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Question 11 11. What are prime costs?

Question 12 12. Which of these describes unit cost?

Question 13 13. An example of categorizing costs is the ability to differentiate between _____ and _____ costs.

Question 14 14. If a unit of product uses $1.30 in raw materials and $8.40 in labor, what is the total variable cost to manufacture 10,000 units, assuming that the warehouse costs $1,000 per month?

Question 15 15. What type of costs do not change with the quantity produced?

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Question 16 16. Warehouse for storage would be an example of what kind of cost?

Question 17 17. What principle states that expenses for an item should be reported in the same period as the income from that item?

Question 18 18. Leno's Tux Boutique is in dire need of additional blue bow ties for the start of wedding season. He has to quickly order more for his inventory. Which of the following would NOT incur a shortage cost for the business?

Question 19 19. Which of the following statements is TRUE?

Question 20 20. If someone is considering sunk costs when making a decision, what are they doing?

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Question 21 21. What are costs that are directly related to a decision made by management?

Question 22 22. You currently produce 50,000 units for $135,000. You can produce 55,000 units for $160,000. Your charge $4.99 per unit. Calculate the marginal cost. Should you increase production? Why or why not?

Question 23 23. Which one is calculated by the cost of goods manufactured schedule?

Question 24 24. It cost Mia a total of $750 to produce 100 scarves. What is her break-even price?

Question 25 25. How are fixed costs related to production levels?

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Question 26 26. We are looking to find Smokey's Roofing conversion costs for the month. The company had $78,000 during November in direct labor and related costs. The company also incurred $155,000 in factory overhead costs. Smokey's Roofing also made 75,000 widgets during November. This made the conversion cost per unit what?

Question 27 27. Which of the following are associated with variable costs?

Question 28 28. What threat do indirect costs pose to a company?

Question 29 29. What is the average total cost for a computer monitor when fixed costs are $50,000, variable costs are $100, and 2,500 units are produced?

Question 30 30. In what way does it matter whether a cost is a period cost or a product cost?

Cost Classifications in Accounting Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Accounting 303: Cost Accounting  /  Business Courses
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