ACTG 222 Exam 1 Review

An opportunity cost is the cost of not doing something.

• True
• False

Whether a cost is treated as direct or indirect depends on whether tracing the cost is both possible and practical.

• True
• False

The total manufacturing cost for a job includes the amount of applied overhead using the predetermined overhead rate.

• True
• False

Prime costs include direct materials, direct labor, and manufacturing overhead.

• True
• False

All manufacturing costs are treated as product costs.

• True
• False

A cost that will occur in the future and differs between various alternatives under consideration is a relevant cost.

• True
• False

The weighted-average process costing production report is slightly more detailed than the FIFO report and gives more attention to the units that were on hand at the beginning of the period.

• True
• False

Opportunity costs occur in business when resources are constrained.

• True
• False

Process costing averages the total cost of the process over the number of units produced.

• True
• False

Financial accounting information is generally used exclusively by internal parties such as managers.

• True
• False