Question 1

Which of the following is not a factory overhead cost?

Accepted Answer

A)  materials used directly in the manufacturing process of the product 
B)  insurance on factory equipment 
C)  salaries of production supervisors 
D)  property tax on factory building 
A)  materials used directly in the manufacturing process of the product 
B)  insurance on factory equipment 
C)  salaries of production supervisors 
D)  property tax on factory building

Question 2

Period costs include

Accepted Answer

A)  current assets on the balance sheet 
B)  current liabilities on the balance sheet 
C)  operating costs that are shown on the income statement when products are sold 
D)  operating costs that are shown on the income statement in the period in which they are incurred 
A)  current assets on the balance sheet 
B)  current liabilities on the balance sheet 
C)  operating costs that are shown on the income statement when products are sold 
D)  operating costs that are shown on the income statement in the period in which they are incurred

Question 3

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Accepted Answer

A) True 
 B)False

Question 4

Product costs include direct labor and advertising expense.

Accepted Answer

A) True 
 B)False

Question 5

Goods that are partially completed by a manufacturer are

Accepted Answer

A)  merchandise inventory 
B)  work in process inventory 
C)  finished goods inventory 
D)  materials inventory 
A)  merchandise inventory 
B)  work in process inventory 
C)  finished goods inventory 
D)  materials inventory

Question 6

Match the items below for a bakery to the type of cost a-d).
-Depreciation expense-factory

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 7

What term refers to the cost of changing direct materials into a finished manufactured product?

Accepted Answer

A)  factory overhead cost 
B)  period cost 
C)  conversion cost 
D)  direct labor cost 
A)  factory overhead cost 
B)  period cost 
C)  conversion cost 
D)  direct labor cost

Question 8

Zoe Corporation has the following information for the month of March:   Prepare a) a schedule of cost of goods manufactured, b) an income statement for the month ended March 31, and c) the inventory section of the balance sheet.

Accepted Answer

a) @#IMG-DLM& b) @#IMG-DLM& c) @#IMG-DLM& @#IMG-DLM& Required: Present all calcu

Question 9

Which of the following are basic phases of the management process?

Accepted Answer

A)  supervising and directing 
B)  decision making and supervising 
C)  organizing and directing 
D)  planning and controlling 
A)  supervising and directing 
B)  decision making and supervising 
C)  organizing and directing 
D)  planning and controlling

Question 10

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

Accepted Answer

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

Question 11

Given the following data: $$\begin{array} { | l | l | } 
\hline \text { Work in process, beginning } & \$ 14,000 \
\hline \text { Work in process, ending } & 20,000 \
\hline \text { Direct labor costs } & 4,000 \
\hline \text { Cost of goods manufactured } & 8,000 \
\hline \text { Factory overhead } & 8,000 \
\hline
\end{array}$$ Direct materials used is

Accepted Answer

A)  $2,000 
B)  $4,000 
C)  $8,000 
D)  $14,000 
A)  $2,000 
B)  $4,000 
C)  $8,000 
D)  $14,000

Question 12

Another term for factory overhead is

Accepted Answer

A)  surplus 
B)  period cost 
C)  supervisory cost 
D)  factory burden 
A)  surplus 
B)  period cost 
C)  supervisory cost 
D)  factory burden

Question 13

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

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 14

Period costs are operating costs that are expensed in the period in which the goods are sold.

Accepted Answer

A) True 
 B)False

Question 15

Prime costs are

Accepted Answer

A)  direct materials and factory overhead 
B)  direct materials and direct labor 
C)  direct labor and factory overhead 
D)  period costs and factory overhead 
A)  direct materials and factory overhead 
B)  direct materials and direct labor 
C)  direct labor and factory overhead 
D)  period costs and factory overhead

Question 16

The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Cost of goods manufactured during the period was

Accepted Answer

A)  $233,000 
B)  $225,600 
C)  $288,800 
D)  $240,400 
A)  $233,000 
B)  $225,600 
C)  $288,800 
D)  $240,400

Question 17

At the beginning of the current year, the Grant Company's work in process inventory account had a balance of $30,000. During the year, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Factory overhead for the year amounted to $90,000. Cost of goods manufactured is $230,000. The balance in work in process inventory on December 31 is

Accepted Answer

A)  $24,000 
B)  $44,000 
C)  $66,000 
D)  $36,000 
A)  $24,000 
B)  $44,000 
C)  $66,000 
D)  $36,000

Question 18

What is the primary criterion for the preparation of managerial accounting reports?

Accepted Answer

A)  relevance of the reports 
B)  manager needs 
C)  timing of the reports 
D)  cost of the reports 
A)  relevance of the reports 
B)  manager needs 
C)  timing of the reports 
D)  cost of the reports

Question 19

A performance report that identifies the amount of employee downtime is a financial accounting report.

Accepted Answer

A) True 
 B)False

Question 20

Differentiate between:
a) direct materials versus indirect materials
b) direct labor versus indirect labor

Accepted Answer

a) Direct materials must become a physic

Exam 16: Managerial Accounting Concepts and Principles

Which of the following is not a factory overhead cost?

Period costs include

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Product costs include direct labor and advertising expense.

Goods that are partially completed by a manufacturer are

Match the items below for a bakery to the type of cost a-d). -Depreciation expense-factory

What term refers to the cost of changing direct materials into a finished manufactured product?

Zoe Corporation has the following information for the month of March: Prepare a) a schedule of cost of goods manufactured, b) an income statement for the month ended March 31, and c) the inventory section of the balance sheet.

Which of the following are basic phases of the management process?

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

Given the following data: Work in process, beginning \ 14,000 Work in process, ending 20,000 Direct labor costs 4,000 Cost of goods manufactured 8,000 Factory overhead 8,000 Direct materials used is

Another term for factory overhead is

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

Period costs are operating costs that are expensed in the period in which the goods are sold.

Prime costs are

The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Cost of goods manufactured during the period was

What is the primary criterion for the preparation of managerial accounting reports?

A performance report that identifies the amount of employee downtime is a financial accounting report.

Differentiate between: a) direct materials versus indirect materials b) direct labor versus indirect labor

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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