Question 1

Products that have been completed and are ready to be sold by the manufacturer are called:

Accepted Answer

A) Finished goods inventory. 
B) Work in Process inventory. 
C) Raw materials inventory. 
D) Cost of goods sold. 
E) Factory supplies. 
A) Finished goods inventory. 
B) Work in Process inventory. 
C) Raw materials inventory. 
D) Cost of goods sold. 
E) Factory supplies.

Question 2

Labor costs that are clearly associated with specific units of product because the labor is used to convert raw materials into finished products are called:

Accepted Answer

A) Contracted labor. 
B) Direct labor. 
C) Indirect labor. 
D) Finished labor. 
E) All labor. 
A) Contracted labor. 
B) Direct labor. 
C) Indirect labor. 
D) Finished labor. 
E) All labor.

Question 3

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 4

Craigmont Company's direct materials costs are $3,000,000,its direct labor costs total $7,000,000,and its factory overhead costs total $5,000,000.Its conversion costs total:

Accepted Answer

A) $10,000,000. 
B) $8,000,000. 
C) $12,000,000. 
D) $5,000,000. 
E) $15,000,000. 
A) $10,000,000. 
B) $8,000,000. 
C) $12,000,000. 
D) $5,000,000. 
E) $15,000,000.

Question 5

A schedule of cost of goods manufactured is also known as a:

Accepted Answer

A) Raw materials processed schedule. 
B) Factory supplies used schedule. 
C) Manufacturing statement. 
D) Total finished goods statement. 
E) Cost of goods sold schedule. 
A) Raw materials processed schedule. 
B) Factory supplies used schedule. 
C) Manufacturing statement. 
D) Total finished goods statement. 
E) Cost of goods sold schedule.

Question 6

Period costs for a manufacturing company would flow directly to:

Accepted Answer

A) The income statement as an expense. 
B) Factory overhead. 
C) The balance sheet as inventory. 
D) Cost of goods sold on the income statement. 
E) The current schedule of cost of goods manufactured. 
A) The income statement as an expense. 
B) Factory overhead. 
C) The balance sheet as inventory. 
D) Cost of goods sold on the income statement. 
E) The current schedule of cost of goods manufactured.

Question 7

Adopting a lean business model should have no effect on cost in a modern manufacturing environment.

Accepted Answer

A) True 
 B)False

Question 8

Managerial accounting provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Accepted Answer

A) True 
 B)False

Question 9

Indirect materials are accounted for as factory overhead because they are not clearly identified with specific product units.

Accepted Answer

A) True 
 B)False

Question 10

Using the information below for Singing Dolls,Inc. ,determine the total manufacturing costs incurred during the year:

Accepted Answer

A) $13,000. 
B) $44,500. 
C) $57,500. 
D) $94,500. 
E) $89,000. 
A) $13,000. 
B) $44,500. 
C) $57,500. 
D) $94,500. 
E) $89,000.

Question 11

Thornton Foods bakes and sells 2,000 dozen muffins each week to food service operations.Among the costs are bakers' salaries,$24,000;production management salaries,$16,000;production equipment operating costs,$32,000;and flour and ingredient costs,$15,000.Using this information,compute: (a)prime costs and (b)conversion costs.

Accepted Answer

The answer of Thornton Foods bakes and sells 2,000 dozen...

Question 12

Product costs can be classified as one of three types: direct materials,direct labor,or overhead.

Accepted Answer

A) True 
 B)False

Question 13

The focus of managerial accounting information is on the organization as a whole.

Accepted Answer

A) True 
 B)False

Question 14

Cost concepts such as variable,fixed,mixed,direct and indirect apply only to manufacturers and not to service companies.

Accepted Answer

A) True 
 B)False

Question 15

Information for the Deuce Manufacturing Company follows.Compute the cost of goods manufactured for this company.

Accepted Answer

The answer of Information for the Deuce Manufacturing Company follows.Compute...

Question 16

The raw materials inventory turnover is raw materials purchased divided by the average raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 17

___________________ is an activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Accepted Answer

Managerial

Question 18

Comet Company accumulated the following account information for the year:   Using the above information,total factory overhead costs would be:

Accepted Answer

A) $9,800. 
B) $16,800. 
C) $15,800. 
D) $13,000. 
E) $7,800. 
A) $9,800. 
B) $16,800. 
C) $15,800. 
D) $13,000. 
E) $7,800.

Question 19

Which one of the following items is normally not a manufacturing cost?

Accepted Answer

A) Direct materials. 
B) Factory overhead. 
C) General and administrative expenses. 
D) Direct labor. 
E) Conversion cost. 
A) Direct materials. 
B) Factory overhead. 
C) General and administrative expenses. 
D) Direct labor. 
E) Conversion cost.

Question 20

Straight line depreciation,rent and manager salaries are examples of variable costs.

Accepted Answer

A) True 
 B)False

Exam 18: Managerial Accounting Concepts and Principles

Products that have been completed and are ready to be sold by the manufacturer are called:

Labor costs that are clearly associated with specific units of product because the labor is used to convert raw materials into finished products are called:

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Craigmont Company's direct materials costs are $3,000,000,its direct labor costs total $7,000,000,and its factory overhead costs total $5,000,000.Its conversion costs total:

A schedule of cost of goods manufactured is also known as a:

Period costs for a manufacturing company would flow directly to:

Adopting a lean business model should have no effect on cost in a modern manufacturing environment.

Managerial accounting provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Indirect materials are accounted for as factory overhead because they are not clearly identified with specific product units.

Using the information below for Singing Dolls,Inc. ,determine the total manufacturing costs incurred during the year:

Product costs can be classified as one of three types: direct materials,direct labor,or overhead.

The focus of managerial accounting information is on the organization as a whole.

Cost concepts such as variable,fixed,mixed,direct and indirect apply only to manufacturers and not to service companies.

Information for the Deuce Manufacturing Company follows.Compute the cost of goods manufactured for this company.

The raw materials inventory turnover is raw materials purchased divided by the average raw materials inventory.

___________________ is an activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Comet Company accumulated the following account information for the year: Using the above information,total factory overhead costs would be:

Which one of the following items is normally not a manufacturing cost?

Straight line depreciation,rent and manager salaries are examples of variable costs.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Job Order Cost Accounting

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

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