Question 1

Variable costs

Accepted Answer

A) vary in total as activity varies. 
B) vary on a per unit basis as activity varies. 
C) are unpredictable. 
D) none of the above. 
A) vary in total as activity varies. 
B) vary on a per unit basis as activity varies. 
C) are unpredictable. 
D) none of the above.

Question 2

How does a manufacturing company report cost of goods manufactured?

Accepted Answer

A) as a current asset on the balance sheet 
B) as a component of the raw materials inventory on the balance sheet 
C) as a component in the calculation of cost of goods sold on the income statement 
D) as an administrative expense on the income statement 
A) as a current asset on the balance sheet 
B) as a component of the raw materials inventory on the balance sheet 
C) as a component in the calculation of cost of goods sold on the income statement 
D) as an administrative expense on the income statement

Question 3

What amount is given by the sum of the cost of the beginning work in process and the total manufacturing costs for the current year?

Accepted Answer

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

Question 4

Which product cost is most difficult to associate with a product?

Accepted Answer

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

Question 5

Which one of the following costs would be included in manufacturing overhead of a lawn mower manufacturer?

Accepted Answer

A) the cost of the wheels 
B) the cost of the fuel lines that run from the motor to the gas tank 
C) depreciation on the testing equipment 
D) the wages earned by motor assemblers 
A) the cost of the wheels 
B) the cost of the fuel lines that run from the motor to the gas tank 
C) depreciation on the testing equipment 
D) the wages earned by motor assemblers

Question 6

Rezell Combines, Inc.has $4,000 of finished goods inventory as of December 31, 2020.If beginning finished goods inventory was $2,000 and cost of goods sold was $8,000, how much would Rezell report for cost of goods manufactured?

Accepted Answer

A) $9,000 
B) $2,000 
C) $10,000 
D) $6,000 
A) $9,000 
B) $2,000 
C) $10,000 
D) $6,000

Question 7

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.
-Assume Caltreck Manufacturing's cost of goods manufactured for 2020 amounted to $1,200,000.How much would it report as cost of goods sold for the year?

Accepted Answer

A) $1,210,000 
B) $1,250,000 
C) $1,325,000 
D) $1,190,000 
A) $1,210,000 
B) $1,250,000 
C) $1,325,000 
D) $1,190,000

Question 8

A merchandising company includes cost of goods purchased in its calculation of cost of goods sold.What is the counterpart used by a manufacturing company?

Accepted Answer

A) ending inventory 
B) beginning inventory 
C) cost of goods available for sale 
D) cost of goods manufactured 
A) ending inventory 
B) beginning inventory 
C) cost of goods available for sale 
D) cost of goods manufactured

Question 9

Which one of the following is a product cost?

Accepted Answer

A) indirect labour 
B) office salaries 
C) sales person's salaries 
D) advertising costs 
A) indirect labour 
B) office salaries 
C) sales person's salaries 
D) advertising costs

Question 10

Which one of the following is indirect labour considered?

Accepted Answer

A) product cost 
B) nonmanufacturing cost 
C) period cost 
D) raw material cost 
A) product cost 
B) nonmanufacturing cost 
C) period cost 
D) raw material cost

Question 11

How would you expect to see manufacturing inventories listed on a company's balance sheet?

Accepted Answer

A) in alphabetical order 
B) in order of liquidity 
C) in order from largest to smallest 
D) any order the company desires 
A) in alphabetical order 
B) in order of liquidity 
C) in order from largest to smallest 
D) any order the company desires

Question 12

Which beginning and ending inventories appear on a cost of goods manufactured schedule?

Accepted Answer

A) raw materials only 
B) raw materials and work in process only 
C) raw materials, work in process, and finished goods 
D) work in process only 
A) raw materials only 
B) raw materials and work in process only 
C) raw materials, work in process, and finished goods 
D) work in process only

Question 13

Costs of goods manufactured of SuperK Company are shown below: 
SUPERK COMPANY
Cost of Goods Manufactured
Year Ending December 31, 2020
---------------------------------------
Beginning wark in process: $\quad $ $\quad $ $\quad $ $\quad $$\$ 15,000$ Direct materials:
$\begin{array}{llcc}
\text {Beginning raw materials}&\$14,000\
\text {Raw material purchases}&\underline{22,000}\
\text {Total raw materials available for use}&36,000\
\text {Ending raw materials}&\underline{5,500}\
\text {Direct materials used.}&&30,500\
\text {Direct Labour}&&6,000\
\text {Total manufacturing overhead}&&\underline{10,500}\
\text {Ending work in process.}&&\underline{18,000}\
\text {Cost of Goods Manufactured}&&\underline{\$44,000}
\end{array}$
 How much is the total manufacturing cost?

Accepted Answer

A) $20,500 
B) $23,000 
C) $47,000 
D) $44,000 
A) $20,500 
B) $23,000 
C) $47,000 
D) $44,000

Question 14

Use the following information for questions 
 $\begin{array}{c}
\begin{array}{l}\
\underline{\text { Month }} \
\text { Jan } \
\text { Feb } \
\text { Mar } \
\text { Apr } \
\text { May } \
\text { Jun } \
\text { Jul } \
\text { Aug }
\end{array}
\begin{array}{ll}
\text { \# Machine } & \text { Maintenance } \
 \underline{\text { Hours (X)}} & \underline{ \text { Costs(Y) }}\
3,000 & \$ 440 \
4,500 & \$ 690 \
8,000 & \$ 510 \ 
7,000 & \$ 600 \
6,000 & \$ 550 \
9,000 & \$ 980 \
3,500 & \$ 840 \
5,500 & \$ 600 
\end{array}
\end{array}$

-Using the high-low method, what is the slope for this set of data?

Accepted Answer

A) $9 
B) $0.09 
C) $11.11 
D) $540 
A) $9 
B) $0.09 
C) $11.11 
D) $540

Question 15

Use the following information for questions 
 $\begin{array}{c}
\begin{array}{l}\
\underline{\text { Month }} \
\text { Jan } \
\text { Feb } \
\text { Mar } \
\text { Apr } \
\text { May } \
\text { Jun } \
\text { Jul } \
\text { Aug }
\end{array}
\begin{array}{ll}
\text { \# Machine } & \text { Maintenance } \
 \underline{\text { Hours (X)}} & \underline{ \text { Costs(Y) }}\
3,000 & \$ 440 \
4,500 & \$ 690 \
8,000 & \$ 510 \ 
7,000 & \$ 600 \
6,000 & \$ 550 \
9,000 & \$ 980 \
3,500 & \$ 840 \
5,500 & \$ 600 
\end{array}
\end{array}$

-What does the slope represent?

Accepted Answer

A) the rate at which the X variable changes as a result of the Y variable 
B) the rate at which the Y variable changes as a result of the X variable 
C) the rate at which the dependent variable changes as a result of the fixed cost component 
D) the rate at which the independent variable changes as a result of changes in the dependent variable 
A) the rate at which the X variable changes as a result of the Y variable 
B) the rate at which the Y variable changes as a result of the X variable 
C) the rate at which the dependent variable changes as a result of the fixed cost component 
D) the rate at which the independent variable changes as a result of changes in the dependent variable

Question 16

What must occur for inventoriable costs to become expenses under the matching principle?

Accepted Answer

A) The product must be completed and ready to sell. 
B) The product must be sold. 
C) All of the costs associated with manufacturing a product must be incurred. 
D) The product must have incurred labour. 
A) The product must be completed and ready to sell. 
B) The product must be sold. 
C) All of the costs associated with manufacturing a product must be incurred. 
D) The product must have incurred labour.

Question 17

Property taxes for the entire manufacturing facility, including the front office and factory area are

Accepted Answer

A) both fixed and variable product costs. 
B) both direct and indirect costs. 
C) both a product and a period cost. 
D) none of the above. 
A) both fixed and variable product costs. 
B) both direct and indirect costs. 
C) both a product and a period cost. 
D) none of the above.

Question 18

Which one of the following is not a manufacturing cost?

Accepted Answer

A) advertising costs 
B) cost of goods sold 
C) manufacturing overhead 
D) direct materials 
A) advertising costs 
B) cost of goods sold 
C) manufacturing overhead 
D) direct materials

Question 19

A company loses its opening financial records in a fire.During the following year, it incurred costs of production of $250,000 and sold $300,000 in merchandise.It took an inventory count and found that it had $100,000 in product on hand.What should the company's opening inventory show before the fire?

Accepted Answer

A) $50,000 
B) $100,000 
C) $150,000 
D) Cannot be determined from the above information. 
A) $50,000 
B) $100,000 
C) $150,000 
D) Cannot be determined from the above information.

Question 20

What criteria must be met in order to consider the work of factory employees to be direct labour?

Accepted Answer

A) It must be promptly associated with converting materials into products. 
B) It must be physically associated with converting materials into products. 
C) It must be materially associated with converting materials into products. 
D) It must be periodically associated with converting materials into products. 
A) It must be promptly associated with converting materials into products. 
B) It must be physically associated with converting materials into products. 
C) It must be materially associated with converting materials into products. 
D) It must be periodically associated with converting materials into products.

Variable costs

How does a manufacturing company report cost of goods manufactured?

What amount is given by the sum of the cost of the beginning work in process and the total manufacturing costs for the current year?

Which product cost is most difficult to associate with a product?

Which one of the following costs would be included in manufacturing overhead of a lawn mower manufacturer?

Rezell Combines, Inc.has $4,000 of finished goods inventory as of December 31, 2020.If beginning finished goods inventory was $2,000 and cost of goods sold was $8,000, how much would Rezell report for cost of goods manufactured?

A merchandising company includes cost of goods purchased in its calculation of cost of goods sold.What is the counterpart used by a manufacturing company?

Which one of the following is a product cost?

Which one of the following is indirect labour considered?

How would you expect to see manufacturing inventories listed on a company's balance sheet?

Which beginning and ending inventories appear on a cost of goods manufactured schedule?

Use the following information for questions Jan Feb Mar Apr May Jun Jul Aug \# Machine Maintenance 3,000 \ 440 4,500 \ 690 8,000 \ 510 7,000 \ 600 6,000 \ 550 9,000 \ 980 3,500 \ 840 5,500 \ 600 -Using the high-low method, what is the slope for this set of data?

Use the following information for questions Jan Feb Mar Apr May Jun Jul Aug \# Machine Maintenance 3,000 \ 440 4,500 \ 690 8,000 \ 510 7,000 \ 600 6,000 \ 550 9,000 \ 980 3,500 \ 840 5,500 \ 600 -What does the slope represent?

What must occur for inventoriable costs to become expenses under the matching principle?

Property taxes for the entire manufacturing facility, including the front office and factory area are

Which one of the following is not a manufacturing cost?

What criteria must be met in order to consider the work of factory employees to be direct labour?

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

Variable costs

How does a manufacturing company report cost of goods manufactured?

What amount is given by the sum of the cost of the beginning work in process and the total manufacturing costs for the current year?

Which product cost is most difficult to associate with a product?

Which one of the following costs would be included in manufacturing overhead of a lawn mower manufacturer?

Rezell Combines, Inc.has $4,000 of finished goods inventory as of December 31, 2020.If beginning finished goods inventory was $2,000 and cost of goods sold was $8,000, how much would Rezell report for cost of goods manufactured?

A merchandising company includes cost of goods purchased in its calculation of cost of goods sold.What is the counterpart used by a manufacturing company?

Which one of the following is a product cost?

Which one of the following is indirect labour considered?

How would you expect to see manufacturing inventories listed on a company's balance sheet?

Which beginning and ending inventories appear on a cost of goods manufactured schedule?

Use the following information for questions Jan Feb Mar Apr May Jun Jul Aug \# Machine Maintenance 3,000 \ 440 4,500 \ 690 8,000 \ 510 7,000 \ 600 6,000 \ 550 9,000 \ 980 3,500 \ 840 5,500 \ 600 -Using the high-low method, what is the slope for this set of data?

Use the following information for questions Jan Feb Mar Apr May Jun Jul Aug \# Machine Maintenance 3,000 \ 440 4,500 \ 690 8,000 \ 510 7,000 \ 600 6,000 \ 550 9,000 \ 980 3,500 \ 840 5,500 \ 600 -What does the slope represent?

What must occur for inventoriable costs to become expenses under the matching principle?

Property taxes for the entire manufacturing facility, including the front office and factory area are

Which one of the following is not a manufacturing cost?

What criteria must be met in order to consider the work of factory employees to be direct labour?

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