Question 1

All of the following employees hold line positions in Facebook except

Accepted Answer

A)  vice president of production 
B)  vice president of finance 
C)  manager of the web design 
D)  vice president of sales 
A)  vice president of production 
B)  vice president of finance 
C)  manager of the web design 
D)  vice president of sales B

Question 2

Materials must have which two qualities in order to be classified as direct materials?

Accepted Answer

A)  They must be classified as both prime costs and conversion costs. 
B)  They must be introduced into the process in both work-in-process inventories and finished goods inventories. 
C)  They must be an integral part of the finished product, but can be an insignificant portion of the total product cost. 
D)  They must be an integral part of the finished product and be a significant portion of the total product cost. 
A)  They must be classified as both prime costs and conversion costs. 
B)  They must be introduced into the process in both work-in-process inventories and finished goods inventories. 
C)  They must be an integral part of the finished product, but can be an insignificant portion of the total product cost. 
D)  They must be an integral part of the finished product and be a significant portion of the total product cost. D

Question 3

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Sprinkles for decoration indirect material)

Accepted Answer

A) Prime costs 
B) Conversion costs 
C) Both prime and conversion costs 
D) Neither prime or conversion costs 
A) Prime costs 
B) Conversion costs 
C) Both prime and conversion costs 
D) Neither prime or conversion costs B

Question 4

Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the current year. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of $7,900, and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance.
Prepare a statement of cost of goods manufactured.

Accepted Answer

The answer of Allen Company used $71,000 of direct materials...

Question 5

In most business organizations, the chief accountant is called the treasurer.

Accepted Answer

A) True 
 B)False

Question 6

Differentiate between a line department and a staff department.​

Accepted Answer

A line department is directly involved i

Question 7

Labor costs that are directly traceable to the product are part of factory overhead.

Accepted Answer

A) True 
 B)False

Question 8

Conversion costs are

Accepted Answer

A)  direct materials and direct labor 
B)  direct materials and factory overhead 
C)  factory overhead and direct labor 
D)  direct materials and indirect labor 
A)  direct materials and direct labor 
B)  direct materials and factory overhead 
C)  factory overhead and direct labor 
D)  direct materials and indirect labor

Question 9

The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 10

Accounting designed to meet the needs of decision makers inside the business is

Accepted Answer

A)  general accounting 
B)  financial accounting 
C)  managerial accounting 
D)  external accounting 
A)  general accounting 
B)  financial accounting 
C)  managerial accounting 
D)  external accounting

Question 11

In most business organizations, the chief management accountant is called the controller.

Accepted Answer

A) True 
 B)False

Question 12

Managerial accounting reports must be prepared according to generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 13

An example of a period cost is

Accepted Answer

A)  advertising expense 
B)  indirect materials 
C)  depreciation on factory equipment 
D)  property taxes on plant facilities 
A)  advertising expense 
B)  indirect materials 
C)  depreciation on factory equipment 
D)  property taxes on plant facilities

Question 14

Direct labor and direct materials are

Accepted Answer

A)  product costs and expensed when the goods are sold 
B)  product costs and expensed when incurred 
C)  period costs and expensed when incurred 
D)  period costs and expensed when the goods are sold 
A)  product costs and expensed when the goods are sold 
B)  product costs and expensed when incurred 
C)  period costs and expensed when incurred 
D)  period costs and expensed when the goods are sold

Question 15

Controlling deals with choosing goals and deciding how to achieve them.

Accepted Answer

A) True 
 B)False

Question 16

For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given.
-Electricity costs to run the factory

Accepted Answer

A) Product 
B) Period 
A) Product 
B) Period

Question 17

For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given.
-Tires for the bicycles

Accepted Answer

A) Product 
B) Period 
A) Product 
B) Period

Question 18

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

Accepted Answer

A) True 
 B)False

Question 19

Classify the following costs as direct, indirect, or neither: $$\begin{array} { | l | l | } 
\hline \text { a) } & \text { labor for machine maintenance } \
\hline \text { b) } & \text { factory equipment depreciation } \
\hline \text { c) } & \text { materials not traceable to specific products } \
\hline \text { d) } & \text { office equipment depreciation } \
\hline \text { e) } & \text { materials traceable to specific products } \
\hline \text { f) } & \text { insurance expired on admini strative facilities } \
\hline \text { g) } & \text { product assembly labor incurred } \
\hline \text { h) } & \text { administrative office salaries } \
\hline \text { i) } & \text { salespersons' salaries } \
\hline \text { j) } & \text { utilities on factory building } \
\hline \text { k) } & \text { putilities on administrative facilities } \
\hline
\end{array}$$

Accepted Answer

a) indirect
b) indirect
c) ind

Question 20

Jensen Company reports the following: $$\begin{array} { | l | l | } 
\hline \text { Direct materials used } & \$ 345,000 \
\hline \text { Direct labor incurred } & 250,000 \
\hline \text { Factory overhead incurred } & 400,000 \
\hline \text { Operating expenses } & 175,000 \
\hline
\end{array}$$
-Jensen Company's product costs are

Accepted Answer

A)  $995,000 
B)  $920,000 
C)  $825,000 
D)  $770,000 
A)  $995,000 
B)  $920,000 
C)  $825,000 
D)  $770,000

Exam 16: Managerial Accounting Concepts and Principles

All of the following employees hold line positions in Facebook except

Materials must have which two qualities in order to be classified as direct materials?

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Sprinkles for decoration indirect material)

In most business organizations, the chief accountant is called the treasurer.

Differentiate between a line department and a staff department.​

Labor costs that are directly traceable to the product are part of factory overhead.

Conversion costs are

The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

Accounting designed to meet the needs of decision makers inside the business is

In most business organizations, the chief management accountant is called the controller.

Managerial accounting reports must be prepared according to generally accepted accounting principles.

An example of a period cost is

Direct labor and direct materials are

Controlling deals with choosing goals and deciding how to achieve them.

For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given. -Electricity costs to run the factory

For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given. -Tires for the bicycles

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

Jensen Company reports the following: Direct materials used \ 345,000 Direct labor incurred 250,000 Factory overhead incurred 400,000 Operating expenses 175,000 -Jensen Company's product costs are

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Filters

Differentiate between a line department and a staff department.