Question :
21. Which of the following costs generally can be traced directly : 1208192
21. Which of the following costs generally can be traced directly to units of product?
A. Indirect materials
B. Assembly labor
C. Overhead costs
D. Indirect materials and assembly labor
22. Some costs that possibly could be traced directly to cost objects are nonetheless classified as indirect costs because:
A. Such practice results in a more accurate accumulated cost for the object.
B. Such costs cannot be traced to objects in a cost-effective manner.
C. Generally accepted accounting principles require some costs to be treated as indirect.
D. All of the other answers are correct.
23. Which of the following statements is true?
A. Direct costs can easily be traced to a cost object; indirect costs cannot be easily be traced to a cost object.
B. Both direct and indirect costs can easily be traced to a cost object.
C. Neither direct nor indirect costs are easily traced to a cost object.
D. Indirect costs can be traced easily to a cost object, but direct costs cannot be easily traced to a cost object.
24. Overhead costs include:
A. Direct and indirect costs.
B. Direct costs only.
C. Indirect costs only.
D. Neither direct nor indirect costs.
25. Overhead costs:
A. Can be traced to cost objects in a cost-effective manner.
B. Cannot be traced to cost objects cost effectively but can be allocated to cost objects.
C. Primarily are variable costs.
D. Are not incurred by most companies.
26. Palmer Company has three divisions. The company should consider a cost to be a direct cost if:
A. It meets guidelines imposed by generally accepted accounting principles.
B. It can be allocated to a division.
C. It is a variable cost.
D. It can be traced to a division in a cost-effective manner.
27. Which of the following statements is true regarding the salary of the manager of a fast food hamburger restaurant?
A. The salary is a fixed cost that is directly traceable to the cost of making hamburgers.
B. The salary is a fixed cost that is directly traceable to the cost of operating a specific restaurant.
C. The salary is a variable cost that cannot be traced to the cost of operating a specific restaurant.
D. None of the other answers are correct.
28. Cost allocation involves:
A. Identifying a cost driver for each cost to be allocated.
B. Calculating an allocation rate for each cost to be allocated.
C. Multiplying the allocation rate by the weight of the cost driver.
D. All of the other answers are correct.
29. Cirque Manufacturing Company operates its three production departments within a single facility. Each department produces its own products and maintains its own production equipment. Although they share a common facility, each department is overseen by separate supervisor. Which one of the following costs is a direct cost of each department?
A. Lease payment on facility
B. Depreciation on the facility
C. Plant manager salary
D. Cost of goods sold
30. Booker Company operates a factory with two departments, X and Y. The rent paid on the manufacturing facility would most likely be allocated to departments X and Y on the basis of:
A. Direct labor hours.
B. Machine hours.
C. Square footage occupied.
D. Units sold.
