ACCT final (phần 1)

The finished product of one company can become raw materials for another company.

• True

• False

Manufacturing overhead costs include ______.

• administrative taxes and insurance, sales commissions, and factory assembly workers' wages

• indirect materials, factory supervisors' salaries, and factory depreciation

• direct materials, administrative taxes and insurance, and sales commissions

• direct materials, sales commissions, and factory assembly workers' wages

How a cost react to changes in activity level is referred to as cost _______________ . (Enter only one word per blank.)

Costs that remain constant in total are ______ costs.

• fixed

• both fixed and variable

• variable

• mixed

The break-even point is reached when the contributioned margin is equal to:

• total sales

• profit

• total variable expense

• total fixed expenses

Company A has a contribution margin ratio of 35%. For each dollar in sales, contribution margin will increase by ______.

• $0.35

• $0.65

To be traced to a cost object such as a particular product, the cost must be incurred to make the product.

• True

• False

Administrative costs include ______.

• executive compensation and public relations costs

• shipping costs and sales commissions

• sales commissions and factory supervisors' salaries

• factory maintenance workers' wages and factory supervisors' salaries

All of a company's depreciation, property taxes, and insurance premiums are considered manufacturing overhead.

• True

• False

A factory manager's salary is an example of a(n) ______ cost.

Multiple choice question.

• traceable

• direct

• period

• indirect