Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Costs on the income statement for both a merchandiser and a manufacturer would be

Accepted Answer

A)  operating expenses 
B)  direct materials 
C)  direct labor incurred 
D)  cost of goods manufactured 
A)  operating expenses 
B)  direct materials 
C)  direct labor incurred 
D)  cost of goods manufactured

Question 3

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 4

The primary goal of managerial accounting is to provide information to

Accepted Answer

A)  investors 
B)  creditors 
C)  management 
D)  external auditors 
A)  investors 
B)  creditors 
C)  management 
D)  external auditors

Question 5

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 6

Match between columns
                        Premises: factory supplies used
depreciation on office equipment
rent on office facilities
advertising expense
sales supplies used
utilities incurred in the office
insurance expired on factory equipment
indirect materials used
cost of primary material used to make product
wages of assembly line personnel
rent expense on factory building

Accepted Answer

The Answer of direct materials and direct labor and selling is...

Question 7

Factory overhead cost is sometimes referred to as factory burden.

Accepted Answer

A) True 
 B)False

Question 8

Smith Company reports the following information: $$\begin{array} { | l | l | } 
\hline \text { Cost of goods manufactured } & \$ 68,250 \
\hline \text { Direct materials used } & 27,000 \
\hline \text { Direct labor incurred } & 25,000 \
\hline \text { Work in process inventory, January 1 } & 11,000 \
\hline
\end{array}$$ Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31, is

Accepted Answer

A)  $16,250 
B)  $8,500 
C)  $18,750 
D)  $13,500 
A)  $16,250 
B)  $8,500 
C)  $18,750 
D)  $13,500

Question 9

The plant manager's salary in a manufacturing business would be considered an indirect cost.

Accepted Answer

A) True 
 B)False

Question 10

The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is false?

Accepted Answer

A)  There is no overlap between financial and managerial accounting. 
B)  Managerial accounting sometimes relies on past information. 
C)  Managerial accounting does not need to conform to GAAP. 
D)  Financial accounting must conform to GAAP. 
A)  There is no overlap between financial and managerial accounting. 
B)  Managerial accounting sometimes relies on past information. 
C)  Managerial accounting does not need to conform to GAAP. 
D)  Financial accounting must conform to GAAP.

Question 12

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

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 13

What term is used to describe the process of developing the organization's objectives and translating those into courses of action?

Accepted Answer

A)  supervising 
B)  planning 
C)  improving 
D)  decision making 
A)  supervising 
B)  planning 
C)  improving 
D)  decision making

Question 14

Which of the following is an example of direct materials cost for an automobile manufacturer?

Accepted Answer

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 
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

Question 15

What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?

Accepted Answer

A)  improving 
B)  controlling 
C)  directing 
D)  planning 
A)  improving 
B)  controlling 
C)  directing 
D)  planning

Question 16

Cost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost.

Accepted Answer

A) True 
 B)False

Question 17

A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities.

Accepted Answer

A) True 
 B)False

Question 18

Cost of goods manufactured is equal to

Accepted Answer

A)  total manufacturing costs plus ending materials inventory less beginning materials inventory 
B)  cost of goods sold plus beginning work in process inventory less ending work in process inventory 
C)  total manufacturing costs plus ending work in process inventory less beginning work in process inventory 
D)  total manufacturing costs plus beginning work in process inventory less ending work in process inventory 
A)  total manufacturing costs plus ending materials inventory less beginning materials inventory 
B)  cost of goods sold plus beginning work in process inventory less ending work in process inventory 
C)  total manufacturing costs plus ending work in process inventory less beginning work in process inventory 
D)  total manufacturing costs plus beginning work in process inventory less ending work in process inventory

Question 19

Keeton Company had the following data: $\begin{array}{lr}
\text { Cost of materials used } & \$ 60,000 \
\text { Direct labor costs } & 58,000 \
\text { Factory overhead } & 33,000 \
\text { Work in process, beg. } & 29,000 \
\text { Work in process, end. } & 18,000 \
\text { Finished goods, beg. } & 32,000 \
\text { Finished goods, end. } & 18,000
\end{array}$ Calculate the cost of goods sold.

Accepted Answer

Cost of goods sold = $60,000 +

Question 20

Which of the following is most associated with managerial accounting?

Accepted Answer

A)  must follow GAAP 
B)  may rely on estimates and forecasts 
C)  is prepared for users outside the organization. 
D)  always reports on the entire entity 
A)  must follow GAAP 
B)  may rely on estimates and forecasts 
C)  is prepared for users outside the organization. 
D)  always reports on the entire entity

Exam 16: Managerial Accounting Concepts and Principles

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

Costs on the income statement for both a merchandiser and a manufacturer would be

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost.

The primary goal of managerial accounting is to provide information to

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Factory overhead cost is sometimes referred to as factory burden.

Smith Company reports the following information: Cost of goods manufactured \ 68,250 Direct materials used 27,000 Direct labor incurred 25,000 Work in process inventory, January 1 11,000 Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31, is

The plant manager's salary in a manufacturing business would be considered an indirect cost.

The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.

Which of the following statements is false?

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

What term is used to describe the process of developing the organization's objectives and translating those into courses of action?

Which of the following is an example of direct materials cost for an automobile manufacturer?

What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?

Cost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost.

A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities.

Cost of goods manufactured is equal to

Keeton Company had the following data: Cost of materials used \ 60,000 Direct labor costs 58,000 Factory overhead 33,000 Work in process, beg. 29,000 Work in process, end. 18,000 Finished goods, beg. 32,000 Finished goods, end. 18,000 Calculate the cost of goods sold.

Which of the following is most associated with managerial accounting?

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

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