Cost Accounting Practice Exam P1

Withing the relevant range, the amount of variable cost per unit remains constant at each production level

• True

• False

When spoilage occur because of some internal failure, the uncoverable cost should be charged to factory overhead control

• True

• False

There is no unused capacity in flexible resources

• True

• False

When spoilage occurs because of some action taken by the customer, the cost of spoilage should be charged to Applied Factory Overhead

• True

• False

A company has been ordening more than the economic order quantity. This would result in more frequent order points

• True

• False

Overapplied overhead will always result when a predetermined factory overhead rate is employed and overhead is incurred is more than overhead applied

• True

• False

The cost of an equivalent unit is equal to the cost necessary to complete one unit production

• True

• False

In a production cost report using process costing, transferred in costs are similar material added at the beginning of the process

• True

• False

To control materials a business must maintain unlimited access, segregation of duties, and accuracy in recording

• True

• False

Mixed Costs are costs that have both fixed and mixed component

• True

• False