Pre_test

For which kind of firm is process costing appropriate?

• Bricklaying firms

• Transport firms

• Hospitals

• Oil refining firms

The cost of printer paper on a college campus would be a direct cost to the college but would need to be allocated as an indirect cost to

• Departments

• Buildings

• Schools

• Individual student instruction

Which type of company converts raw materials into finished products?

• Not-for-profit

• Service

• Merchandising

• Manufacturing

Which of the following are manufacturing costs?

• Overhead and marketing costs

• Direct raw material costs and direct labor costs

• Administrative and direct labor costs

• Marketing and administrative costs

When costs can be traced to a particular cost object in an economically feasible way, the cost is a:

• Direct cost

• Indirect cost

• Allocated cost

• Budgeted cost

Which of the following is a fixed cost with respect to units produced in a factory?

• Monthly rent payment for the building

• Electricity expenses

• Utilities cost of the building

• Direct material costs

Which one of the following is a variable cost for an insurance company?

• Rent of the building

• CEO’s salary

• Electricity expenses

• Property taxes

Which of the following is an example of manufacturing overhead?

• Direct labor costs

• Cost of raw materials

• Cost of Factory utilities

• Selling and administrative expenses

Which of the following is a prime cost?

• Depreciation of factory equipment

• Manufacturing overhead

• Direct materials

• Sales commissions

Which of the following is an overhead cost allocation method?

• Activity-based costing (ABC)

• Job order costing

• Process costing

• Direct costing