Question 1

Indirect labor and indirect materials are classified as

Accepted Answer

A)  factory overhead and product costs 
B)  factory overhead and period costs 
C)  operating costs and period costs 
D)  operating costs and product costs 
A)  factory overhead and product costs 
B)  factory overhead and period costs 
C)  operating costs and period costs 
D)  operating costs and product costs

Question 2

Match the items below for a bakery to the type of cost a-d).
-Frosting

Accepted Answer

A) Direct materials 
B) Direct labor 
C) Factory overhead 
D) Non-manufacturing cost 
A) Direct materials 
B) Direct labor 
C) Factory overhead 
D) Non-manufacturing cost

Question 3

The controller's staff consists of management accountants responsible for systems and procedures, general accounting, budgets, taxes, and cost accounting.

Accepted Answer

A) True 
 B)False

Question 4

Managers used managerial information for all of the following except

Accepted Answer

A)  to evaluate the company's stock performance 
B)  to analyze the performance of a company's operations 
C)  to support long-term planning decisions 
D)  to determine the cost of manufacturing a product 
A)  to evaluate the company's stock performance 
B)  to analyze the performance of a company's operations 
C)  to support long-term planning decisions 
D)  to determine the cost of manufacturing a product

Question 5

Classify the following costs as either a product cost or a period cost:

Accepted Answer

a) product
b) product
c) perio

Question 6

Prime costs consist of factory overhead and direct labor.

Accepted Answer

A) True 
 B)False

Question 7

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

Accepted Answer

A) True 
 B)False

Question 8

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered direct or indirect cost for the cost object given.
-Manufacturing costs for wood and steel used in the bar stools

Accepted Answer

A) Direct 
B) Indirect 
A) Direct 
B) Indirect

Question 9

Operating expenses are product costs and are expensed when the product is sold.

Accepted Answer

A) True 
 B)False

Question 10

Cost of goods sold for a manufacturer equals cost of goods manufactured plus

Accepted Answer

A)  beginning work in process inventory less ending work in process inventory 
B)  ending work in process inventory less beginning work in process inventory 
C)  beginning finished goods inventory less ending finished goods inventory 
D)  ending finished goods inventory less beginning finished goods inventory 
A)  beginning work in process inventory less ending work in process inventory 
B)  ending work in process inventory less beginning work in process inventory 
C)  beginning finished goods inventory less ending finished goods inventory 
D)  ending finished goods inventory less beginning finished goods inventory

Question 11

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered direct or indirect cost for the cost object given.
-The production labor wages for the bar stool assemblers

Accepted Answer

A) Direct 
B) Indirect 
A) Direct 
B) Indirect

Question 12

Managerial information is for external as well as internal stakeholders.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

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

Question 14

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Depreciation expense-office

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

Question 15

Which of the following is most associated with financial accounting?

Accepted Answer

A)  can have both objective and subjective information 
B)  can be prepared periodically, or as needed 
C)  prepared in accordance with GAAP 
D)  can be prepared for the entity or segment 
A)  can have both objective and subjective information 
B)  can be prepared periodically, or as needed 
C)  prepared in accordance with GAAP 
D)  can be prepared for the entity or segment

Question 16

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered direct or indirect cost for the cost object given.
-Nails and screws used in the production of the bar stools

Accepted Answer

A) Direct 
B) Indirect 
A) Direct 
B) Indirect

Question 17

Only the value of the inventory that is sold will appear on the income statement.

Accepted Answer

A) True 
 B)False

Question 18

Factory overhead includes

Accepted Answer

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

Question 19

Product costs are not expensed until the product is sold.

Accepted Answer

A) True 
 B)False

Question 20

Prime costs are the combination of direct labor costs and factory overhead costs.

Accepted Answer

A) True 
 B)False

Exam 16: Managerial Accounting Concepts and Principles

Indirect labor and indirect materials are classified as

Match the items below for a bakery to the type of cost a-d). -Frosting

The controller's staff consists of management accountants responsible for systems and procedures, general accounting, budgets, taxes, and cost accounting.

Managers used managerial information for all of the following except

Classify the following costs as either a product cost or a period cost:

Prime costs consist of factory overhead and direct labor.

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered direct or indirect cost for the cost object given. -Manufacturing costs for wood and steel used in the bar stools

Operating expenses are product costs and are expensed when the product is sold.

Cost of goods sold for a manufacturer equals cost of goods manufactured plus

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered direct or indirect cost for the cost object given. -The production labor wages for the bar stool assemblers

Managerial information is for external as well as internal stakeholders.

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

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Depreciation expense-office

Which of the following is most associated with financial accounting?

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered direct or indirect cost for the cost object given. -Nails and screws used in the production of the bar stools

Only the value of the inventory that is sold will appear on the income statement.

Factory overhead includes

Product costs are not expensed until the product is sold.

Prime costs are the combination of direct labor costs and factory overhead costs.

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