1. A widely used activity base for developing factory overhead rates in highly automated settings is:
a. direct labor hours
b. direct labor dollars
c. direct materials
d. machine hours
2. Which of the following would be most likely to use process costing?
a. a custom furniture manufacture
b. an auto body repair shop
c. a law firm
d. a lawn fertilizer manufacture
3. Which of the following would most likely be a period cost?
a. depreciation on factory lunchroom furniture
b. Salary of telephone receptionist in the sales office
c. Salary of a security guard for the factory parking lot
d. computer chips used by a computer manufacturer
4. Which of the following would most likely be a product cost?
a. salary of VP of sales
b. advertisting for a particular product
c. drill bits for a drill press used in the plant assembly area
d. salary of the company receptionist
5. Which of the following is most associated with financial accounting?
a. Can have both objective and subjective info
b. can be prepared periodically or as needed
c. prepared in accordance with GAAP
d. Can be prepared for the entity or segment
6. Which of the following is an example of direct materials cost for an automobile manufacture?
a. cost of oil lubricants for factory machinery
b. cost of wages of assembly worker
c. Salary of production supervisor
d. Cost of interior upholstery