Question 1

What are the components of total manufacturing costs?

Accepted Answer

A) direct materials and direct labour only 
B) direct labour and manufacturing overhead only 
C) manufacturing overhead only 
D) direct materials, direct labour, and manufacturing overhead 
A) direct materials and direct labour only 
B) direct labour and manufacturing overhead only 
C) manufacturing overhead only 
D) direct materials, direct labour, and manufacturing overhead

Question 2

In which classification would the wages of a factory payroll clerk be classified?

Accepted Answer

A) raw materials 
B) indirect labour 
C) period cost 
D) direct labour 
A) raw materials 
B) indirect labour 
C) period cost 
D) direct labour

Question 3

Critical inputs in using the high-low method include all of the following except

Accepted Answer

A) actual activity levels (production levels)for an operating period. 
B) actual mixed costs (total costs)corresponding to the various activity levels. 
C) a calculator. 
D) a hypothesis for the slope. 
A) actual activity levels (production levels)for an operating period. 
B) actual mixed costs (total costs)corresponding to the various activity levels. 
C) a calculator. 
D) a hypothesis for the slope.

Question 4

Which one of the following is not considered a 'material' cost?

Accepted Answer

A) partially completed motor engines for a motorcycle plant 
B) bolts used in manufacturing the compressor of an engine 
C) rivets for the wings of a new commercial jet aircraft 
D) lumber used to build tables 
A) partially completed motor engines for a motorcycle plant 
B) bolts used in manufacturing the compressor of an engine 
C) rivets for the wings of a new commercial jet aircraft 
D) lumber used to build tables

Question 5

How is the cost of goods manufactured calculated?

Accepted Answer

A) beginning WIP + direct materials used + direct labour + manufacturing overhead + ending WIP 
B) direct materials used + direct labour + manufacturing overhead - beginning WIP + ending WIP 
C) beginning WIP + direct materials used + direct labour + manufacturing overhead - ending WIP 
D) direct materials used + direct labour + manufacturing overhead - ending WIP - beginning WIP 
A) beginning WIP + direct materials used + direct labour + manufacturing overhead + ending WIP 
B) direct materials used + direct labour + manufacturing overhead - beginning WIP + ending WIP 
C) beginning WIP + direct materials used + direct labour + manufacturing overhead - ending WIP 
D) direct materials used + direct labour + manufacturing overhead - ending WIP - beginning WIP

Question 6

Ranger Company reported total manufacturing costs of $65,000, manufacturing overhead totalling $13,000, and direct materials totalling $16,000.How much is direct labour cost?

Accepted Answer

A) Cannot be determined from the information provided. 
B) $94,000 
C) $29,000 
D) $36,000 
A) Cannot be determined from the information provided. 
B) $94,000 
C) $29,000 
D) $36,000

Question 7

Salaries of sales people who only sell one product should best be shown as

Accepted Answer

A) fixed overhead. 
B) variable overhead. 
C) direct selling costs. 
D) indirect selling costs. 
A) fixed overhead. 
B) variable overhead. 
C) direct selling costs. 
D) indirect selling costs.

Question 8

What occurs when inventoriable costs are removed from the balance sheet?

Accepted Answer

A) They increase operating expenses. 
B) They become cost of goods sold. 
C) They are reported as selling expenses. 
D) They are deducted from the sales account. 
A) They increase operating expenses. 
B) They become cost of goods sold. 
C) They are reported as selling expenses. 
D) They are deducted from the sales account.

Question 9

Indirect labour is a

Accepted Answer

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

Question 10

Where would you expect to find depreciation on factory equipment?

Accepted Answer

A) included with depreciation expense on the income statement 
B) in the manufacturing overhead section of the Costs of Goods Manufactured schedule 
C) only on the income statement as part of cost of goods sold 
D) as a period cost in the operating expense section of the income statement 
A) included with depreciation expense on the income statement 
B) in the manufacturing overhead section of the Costs of Goods Manufactured schedule 
C) only on the income statement as part of cost of goods sold 
D) as a period cost in the operating expense section of the income statement

Question 11

Which of the following is considered manufacturing overhead?

Accepted Answer

A) depreciation on the press that moulds the plastic into work in process 
B) the line worker's Christmas bonus designated by management 
C) tools that were originally utilized for production but are currently being used by management to fix a copier in the upstairs corporate office 
D) the courier charge for delivering a new ball bearing joint for a robotic paint arm 
A) depreciation on the press that moulds the plastic into work in process 
B) the line worker's Christmas bonus designated by management 
C) tools that were originally utilized for production but are currently being used by management to fix a copier in the upstairs corporate office 
D) the courier charge for delivering a new ball bearing joint for a robotic paint arm

Question 12

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 is total manufacturing costs incurred during 2020 for Caltreck?

Accepted Answer

A) $1,240,000 
B) $1,255,000 
C) $1,235,000 
D) $1,250,000 
A) $1,240,000 
B) $1,255,000 
C) $1,235,000 
D) $1,250,000

Question 13

Use the following information for questions 
 $\begin{array}{c}
\begin{array}{l}\
\text { Month } \
\text { Jan } \
\text { Feb } \
\text { Mar } \
\text { Apr } \
\text { May } \
\text { Jun } \
\text { Jul } \
\text { Aug }
\end{array}
\begin{array}{l}
\text { Labour }&\text { Overhead } \
 \underline{\text { Hours (X)}}& \underline{\text { Costs (Y)}}\
200 & \$ 415 \
175 & \$ 385 \
290 & \$ 520 \
300 & \$ 534 \
185 & \$ 403 \
265 & \$ 490 \
160 & \$ 372 \
320 & \$ 564
\end{array}
\end{array}$

-What is the equation of the line using the high-low method and this data?

Accepted Answer

A) $564 = 180 + (1.2X) 
B) X = 180+ ($1.20Y) 
C) Y = $180 + ($1.2 X) 
D) Y = $180 + (1.20 x 320) 
A) $564 = 180 + (1.2X) 
B) X = 180+ ($1.20Y) 
C) Y = $180 + ($1.2 X) 
D) Y = $180 + (1.20 x 320)

Question 14

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

-Which of the following choices represents the highest and lowest respective coordinates of activity level and corresponding total costs?

Accepted Answer

A) (3,000 hours, $440), (9,000 hours, $980) 
B) (9,000 hours, $980), (3,000 hours, $440) 
C) ($3,000, 440 hours), ($9,000, 980 hours) 
D) ($9,000, 980 hours), ($3,000, 440 hours) 
A) (3,000 hours, $440), (9,000 hours, $980) 
B) (9,000 hours, $980), (3,000 hours, $440) 
C) ($3,000, 440 hours), ($9,000, 980 hours) 
D) ($9,000, 980 hours), ($3,000, 440 hours)

Question 15

Which of the following represents the correct order in which inventories are reported on a manufacturer's balance sheet?

Accepted Answer

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

Question 16

The cost of the management accountant working in the front office of a company is a

Accepted Answer

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

Question 17

Which one of the following is the correct calculation of cost of goods sold for a manufacturing company?

Accepted Answer

A) beginning FG inventory - cost of goods manufactured - ending FG inventory 
B) ending FG inventory - cost of goods manufactured + beginning FG inventory 
C) beginning FG inventory + cost of goods purchased - ending FG inventory 
D) beginning FG inventory + cost of goods manufactured - ending FG inventory 
A) beginning FG inventory - cost of goods manufactured - ending FG inventory 
B) ending FG inventory - cost of goods manufactured + beginning FG inventory 
C) beginning FG inventory + cost of goods purchased - ending FG inventory 
D) beginning FG inventory + cost of goods manufactured - ending FG inventory

Question 18

A curvilinear relationship between variable costs and changes in activity levels suggests what?

Accepted Answer

A) A strictly linear relationship between fixed costs and activity levels is implausible. 
B) A strictly curvilinear relationship between changes in activity levels and variable costs is possible only within the relevant range. 
C) Since the relationship between activity levels and variable costs is linear within the relevant range and less linear at lower and higher levels outside the relevant range, the straight-line (linear)relationship takes on a curvature in the real world. 
D) none of the above 
A) A strictly linear relationship between fixed costs and activity levels is implausible. 
B) A strictly curvilinear relationship between changes in activity levels and variable costs is possible only within the relevant range. 
C) Since the relationship between activity levels and variable costs is linear within the relevant range and less linear at lower and higher levels outside the relevant range, the straight-line (linear)relationship takes on a curvature in the real world. 
D) none of the above

Question 19

When are period costs recorded on the income statement?

Accepted Answer

A) when they occur 
B) when the product that they are associated with is sold 
C) at the discretion of management 
D) none of the above 
A) when they occur 
B) when the product that they are associated with is sold 
C) at the discretion of management 
D) none of the above

Question 20

Cost of goods sold applies to

Accepted Answer

A) only merchandisers' Income Statements. 
B) only manufacturers' Income Statements. 
C) both manufacturers' and merchandisers' Income Statements. 
D) manufacturers, merchandisers, and service companies. 
A) only merchandisers' Income Statements. 
B) only manufacturers' Income Statements. 
C) both manufacturers' and merchandisers' Income Statements. 
D) manufacturers, merchandisers, and service companies.

What are the components of total manufacturing costs?

In which classification would the wages of a factory payroll clerk be classified?

Critical inputs in using the high-low method include all of the following except

Which one of the following is not considered a 'material' cost?

How is the cost of goods manufactured calculated?

Ranger Company reported total manufacturing costs of $65,000, manufacturing overhead totalling $13,000, and direct materials totalling $16,000.How much is direct labour cost?

Salaries of sales people who only sell one product should best be shown as

What occurs when inventoriable costs are removed from the balance sheet?

Indirect labour is a

Where would you expect to find depreciation on factory equipment?

Which of the following is considered manufacturing overhead?

Use the following information for questions Month Jan Feb Mar Apr May Jun Jul Aug Labour Overhead 200 \ 415 175 \ 385 290 \ 520 300 \ 534 185 \ 403 265 \ 490 160 \ 372 320 \ 564 -What is the equation of the line using the high-low method and this data?

Which of the following represents the correct order in which inventories are reported on a manufacturer's balance sheet?

The cost of the management accountant working in the front office of a company is a

Which one of the following is the correct calculation of cost of goods sold for a manufacturing company?

A curvilinear relationship between variable costs and changes in activity levels suggests what?

When are period costs recorded on the income statement?

Cost of goods sold applies to

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

What are the components of total manufacturing costs?

In which classification would the wages of a factory payroll clerk be classified?

Critical inputs in using the high-low method include all of the following except

Which one of the following is not considered a 'material' cost?

How is the cost of goods manufactured calculated?

Ranger Company reported total manufacturing costs of $65,000, manufacturing overhead totalling $13,000, and direct materials totalling $16,000.How much is direct labour cost?

Salaries of sales people who only sell one product should best be shown as

What occurs when inventoriable costs are removed from the balance sheet?

Indirect labour is a

Where would you expect to find depreciation on factory equipment?

Which of the following is considered manufacturing overhead?

Use the following information for questions Month Jan Feb Mar Apr May Jun Jul Aug Labour Overhead 200 \ 415 175 \ 385 290 \ 520 300 \ 534 185 \ 403 265 \ 490 160 \ 372 320 \ 564 -What is the equation of the line using the high-low method and this data?

Which of the following represents the correct order in which inventories are reported on a manufacturer's balance sheet?

The cost of the management accountant working in the front office of a company is a

Which one of the following is the correct calculation of cost of goods sold for a manufacturing company?

A curvilinear relationship between variable costs and changes in activity levels suggests what?

When are period costs recorded on the income statement?

Cost of goods sold applies to

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