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AE 22 Chapter 2 Pre-Lecture Quiz

Total questions: 5

Worksheet time: 6mins

Name
Class
Date
1.

Prime cost and conversion cost share what common element of total cost?

a)

Variable overhead.

b)

Fixed overhead.

c)

Direct materials.

d)

Direct labor.

2.

When a unit of product is the cost object, factory overhead generally is:

a)

An indirect manufacturing cost.

b)

A direct manufacturing cost

c)

Both of the choices.

d)

None of the choices.

3.

For a manufacturing company, which of the following is an example of a period

rather than a product cost?

a)

Depreciation of factory equipment.

b)

Wages of a salesperson.

c)

Wages of machine operators.

d)

Insurance on factory equipment.

4.

Factory rent is

a)

A prime cost and an inventoriable cost.

b)

A prime cost and a period cost.

c)

A conversion cost and an inventoriable cost.

d)

A conversion cost and a period cost.

5.

Which of the following statement is/are true?

a)

Factory rent is included in manufacturing overhead, but office rent is a

period cost.

b)

Cost accounting is not needed by a merchandising entity

c)

Like product costs, period costs are not necessarily treated as expenses in the period in which they are incurred.

d)

Indirect materials/factory supplies are classified as administrative expense.