Question 1

Manufacturing overhead is a

Accepted Answer

A) direct, variable, product cost. 
B) direct, variable period costs. 
C) indirect, variable, product cost. 
D) indirect, fixed or variable, product cost. 
A) direct, variable, product cost. 
B) direct, variable period costs. 
C) indirect, variable, product cost. 
D) indirect, fixed or variable, product cost. D

Question 2

Into which one of the following accounts would the work of factory employees, that can be physically and directly associated with converting raw materials into finished goods, be categorized?

Accepted Answer

A) direct labour 
B) indirect labour 
C) manufacturing overhead 
D) indirect materials 
A) direct labour 
B) indirect labour 
C) manufacturing overhead 
D) indirect materials A

Question 3

As plant controller, you are trying to determine the costs over which you have the most control on a day-to-day basis.Your goal is to achieve better profitability.The plant operations manager suggests that overhead is the easiest area to directly reduce costs.Which of the following items would be classified as manufacturing overhead?

Accepted Answer

A) factory janitor 
B) general corporate liability insurance 
C) cost of landscaping the corporate office 
D) the western division's vice president's salary 
A) factory janitor 
B) general corporate liability insurance 
C) cost of landscaping the corporate office 
D) the western division's vice president's salary A

Question 4

Hardigan Manufacturing Company reported the following year-end information: beginning work in process inventory, $80,000; cost of goods manufactured, $980,000; beginning finished goods inventory, $50,000; ending work in process inventory, $70,000; and ending finished goods inventory, $40,000.How much is Haridgan's cost of goods sold for the year?

Accepted Answer

A) $980,000 
B) $990,000 
C) $970,000 
D) $1,000,000 
A) $980,000 
B) $990,000 
C) $970,000 
D) $1,000,000

Question 5

What amount is given by the sum of direct materials, direct labour, and manufacturing overhead incurred?

Accepted Answer

A) total cost of work in process 
B) cost of goods available for sale 
C) total manufacturing costs 
D) cost of goods manufactured 
A) total cost of work in process 
B) cost of goods available for sale 
C) total manufacturing costs 
D) cost of goods manufactured

Question 6

Where there is a linear relationship between two variables,

Accepted Answer

A) the change in the dependent variable yields a predictable, constant change in the independent variable. 
B) the change in the independent variable yields a predictable, constant change in the dependent variable. 
C) there is seldom a linear relationship between two variables. 
D) a change in the "Y" variable yields a predictable, constant change in the "X" variable. 
A) the change in the dependent variable yields a predictable, constant change in the independent variable. 
B) the change in the independent variable yields a predictable, constant change in the dependent variable. 
C) there is seldom a linear relationship between two variables. 
D) a change in the "Y" variable yields a predictable, constant change in the "X" variable.

Question 7

Which of the following would most likely be considered direct labour?

Accepted Answer

A) a worker installing components in a computer 
B) a maintenance worker 
C) a security guard 
D) a sales person 
A) a worker installing components in a computer 
B) a maintenance worker 
C) a security guard 
D) a sales person

Question 8

The high-low method

Accepted Answer

A) is a useful means of predicting the highest cost a company will incur in the operating period. 
B) is a useful means of separating fixed and variable elements from a mixed cost. 
C) is more time-consuming than the scatter diagram method. 
D) is more complex than the use of linear regression analysis. 
A) is a useful means of predicting the highest cost a company will incur in the operating period. 
B) is a useful means of separating fixed and variable elements from a mixed cost. 
C) is more time-consuming than the scatter diagram method. 
D) is more complex than the use of linear regression analysis.

Question 9

Mixed costs

Accepted Answer

A) change in proportion to changes in activity level. 
B) change in total in response to changes in activity level. 
C) change proportionately and in total as a result of changes in activity level. 
D) none of these. 
A) change in proportion to changes in activity level. 
B) change in total in response to changes in activity level. 
C) change proportionately and in total as a result of changes in activity level. 
D) none of these.

Question 10

What amount would you find on financial statements of merchandising companies that is referred to as finished goods inventory for a manufacturing company?

Accepted Answer

A) purchases 
B) cost of goods purchased 
C) merchandise inventory 
D) raw materials inventory 
A) purchases 
B) cost of goods purchased 
C) merchandise inventory 
D) raw materials inventory

Question 11

Which of the following is a manufacturing activity?

Accepted Answer

A) finished goods being sold directly to the public 
B) developing new products through research and development 
C) converting raw materials into finished goods 
D) all of the above 
A) finished goods being sold directly to the public 
B) developing new products through research and development 
C) converting raw materials into finished goods 
D) all of the above

Question 12

At May 31, 2020, Smythe Inc.has $4,500 in beginning raw materials, $6,000 of direct labour.If manufacturing overhead was $10,500, total manufacturing costs was $50,500, and total raw material purchases were $36,000, how much is ending amount of raw materials?

Accepted Answer

A) $36,000 
B) $21,000 
C) $40,500 
D) $6,500 
A) $36,000 
B) $21,000 
C) $40,500 
D) $6,500

Question 13

Which of the following are period costs?

Accepted Answer

A) income taxes and indirect materials 
B) selling and administrative expenses 
C) indirect labour 
D) advertising and factory depreciation 
A) income taxes and indirect materials 
B) selling and administrative expenses 
C) indirect labour 
D) advertising and factory depreciation

Question 14

Which of the following is not true?

Accepted Answer

A) Mixed costs are comprised of both fixed costs and variable costs, and as a result, mixed costs increase proportionately with an increase in activity level. 
B) Mixed costs change in total, but not proportionately with the change in activity level. 
C) An electricity bill is an example of mixed costs.The fixed portion represents the cost of having the service available and the variable cost is reflective of actual customer usage. 
D) Mixed costs are also known as semi-variable costs. 
A) Mixed costs are comprised of both fixed costs and variable costs, and as a result, mixed costs increase proportionately with an increase in activity level. 
B) Mixed costs change in total, but not proportionately with the change in activity level. 
C) An electricity bill is an example of mixed costs.The fixed portion represents the cost of having the service available and the variable cost is reflective of actual customer usage. 
D) Mixed costs are also known as semi-variable costs.

Question 15

Zirk, Inc.incurred cost of goods manufactured totalling $700,000, manufacturing overhead of $320,000, and direct materials totalling $40,000.How much is the amount of direct labour?

Accepted Answer

A) Cannot be determined from the information provided. 
B) $340,000 
C) $660,000 
D) $700,000 
A) Cannot be determined from the information provided. 
B) $340,000 
C) $660,000 
D) $700,000

Question 16

Which one of the following is not another name for the term manufacturing overhead?

Accepted Answer

A) period costs 
B) factory overhead 
C) indirect manufacturing costs 
D) burden 
A) period costs 
B) factory overhead 
C) indirect manufacturing costs 
D) burden

Question 17

Which one of the following does not appear on the balance sheet of a manufacturing company?

Accepted Answer

A) finished goods inventory 
B) raw materials inventory 
C) cost of goods manufactured 
D) work in process inventory 
A) finished goods inventory 
B) raw materials inventory 
C) cost of goods manufactured 
D) work in process inventory

Question 18

Which of the following statements is true?

Accepted Answer

A) Advertising is a product cost and a plant manager's salary is a period cost. 
B) Advertising is a period cost and a plant manager's salary is a manufacturing overhead cost. 
C) Advertising is a period cost and a plant manager's salary is a period cost. 
D) Advertising is a product cost and a plant manager's salary is a manufacturing overhead cost. 
A) Advertising is a product cost and a plant manager's salary is a period cost. 
B) Advertising is a period cost and a plant manager's salary is a manufacturing overhead cost. 
C) Advertising is a period cost and a plant manager's salary is a period cost. 
D) Advertising is a product cost and a plant manager's salary is a manufacturing overhead cost.

Question 19

Which of the following would most likely be viewed as indirect materials?

Accepted Answer

A) ball bearings associated with an industrial tractor wheel 
B) axle grease associated with the suspension of a new car 
C) new tires for a commercial truck 
D) cost of boring a cylinder in assembly 
A) ball bearings associated with an industrial tractor wheel 
B) axle grease associated with the suspension of a new car 
C) new tires for a commercial truck 
D) cost of boring a cylinder in assembly

Question 20

Use the following information for questions 
Caltreck Manufacturing Inc.'s accounting records reflect the following inventories:
 $$\begin{array} { l c c c } 
& \underline{ \text { Dec. 31,2019 } }&  \underline{\text { Dec. 31, 2020} } \
\text { Raw materials inventory } & \$ 100,000 & \$ 80,000 \
\text { Wark in process irventory } & 130,000 & 145,000 \
\text { Finished goods irventory } & 125,000 & 115,000
\end{array}$$ During 2020, Caltreck purchased $950,000 of raw materials, incurred direct labour costs of $125,000, and incurred manufacturing overhead totalling $160,000.
-How much raw materials is transferred to production during 2020 for Caltreck Manufacturing?

Accepted Answer

A) $1,240,000 
B) $970,000 
C) $950,000 
D) $930,000 
A) $1,240,000 
B) $970,000 
C) $950,000 
D) $930,000

Manufacturing overhead is a

Into which one of the following accounts would the work of factory employees, that can be physically and directly associated with converting raw materials into finished goods, be categorized?

What amount is given by the sum of direct materials, direct labour, and manufacturing overhead incurred?

Where there is a linear relationship between two variables,

Which of the following would most likely be considered direct labour?

The high-low method

Mixed costs

What amount would you find on financial statements of merchandising companies that is referred to as finished goods inventory for a manufacturing company?

Which of the following is a manufacturing activity?

At May 31, 2020, Smythe Inc.has $4,500 in beginning raw materials, $6,000 of direct labour.If manufacturing overhead was $10,500, total manufacturing costs was $50,500, and total raw material purchases were $36,000, how much is ending amount of raw materials?

Which of the following are period costs?

Which of the following is not true?

Zirk, Inc.incurred cost of goods manufactured totalling $700,000, manufacturing overhead of $320,000, and direct materials totalling $40,000.How much is the amount of direct labour?

Which one of the following is not another name for the term manufacturing overhead?

Which one of the following does not appear on the balance sheet of a manufacturing company?

Which of the following statements is true?

Which of the following would most likely be viewed as indirect materials?

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based-Costing

Cost-Volume-Profit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters

Exam 2: Managerial Cost Concepts and Cost Behaviour Analysis

Manufacturing overhead is a

Into which one of the following accounts would the work of factory employees, that can be physically and directly associated with converting raw materials into finished goods, be categorized?

What amount is given by the sum of direct materials, direct labour, and manufacturing overhead incurred?

Where there is a linear relationship between two variables,

Which of the following would most likely be considered direct labour?

The high-low method

Mixed costs

What amount would you find on financial statements of merchandising companies that is referred to as finished goods inventory for a manufacturing company?

Which of the following is a manufacturing activity?

At May 31, 2020, Smythe Inc.has $4,500 in beginning raw materials, $6,000 of direct labour.If manufacturing overhead was $10,500, total manufacturing costs was $50,500, and total raw material purchases were $36,000, how much is ending amount of raw materials?

Which of the following are period costs?

Which of the following is not true?

Zirk, Inc.incurred cost of goods manufactured totalling $700,000, manufacturing overhead of $320,000, and direct materials totalling $40,000.How much is the amount of direct labour?

Which one of the following is not another name for the term manufacturing overhead?

Which one of the following does not appear on the balance sheet of a manufacturing company?

Which of the following statements is true?

Which of the following would most likely be viewed as indirect materials?

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based-Costing

Cost-Volume-Profit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters