Question 1

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

Accepted Answer

A)  factory overhead costs 
B)  miscellaneous expenses 
C)  product costs 
D)  period costs 
A)  factory overhead costs 
B)  miscellaneous expenses 
C)  product costs 
D)  period costs

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The following are some of the costs incurred by a cake factory. Identify them as either:
-Advertising fees

Accepted Answer

A) Product costs 
B) Period costs 
A) Product costs 
B) Period costs

Question 6

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.
-Electricity costs to run the factory

Accepted Answer

A) Product 
B) Period 
A) Product 
B) Period

Question 7

For an automotive repair shop, the wages of mechanics would be classified as direct labor cost.

Accepted Answer

A) True 
 B)False

Question 8

Given the following data:?? $$\begin{array} { l r } 
\text { Work in process, beginning } & \$ 14,000 \
\text { Work in process, ending } & 20,000 \
\text { Direct labor costs } & 4,000 \
\text { Cost of goods manufactured } & 8,000 \
\text { Factory overhead } & 8,000
\end{array}$$ 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 9

Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the current year. Indirect labor amounted to $2,700, while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of $7,900, and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance.
Prepare a statement of cost of goods manufactured.

Accepted Answer

The answer of Allen Company used $71,000 of direct materials...

Question 10

The payment of dividends is an example of a cost.

Accepted Answer

A) True 
 B)False

Question 11

Labor costs that are directly traceable to the product are part of factory overhead.

Accepted Answer

A) True 
 B)False

Question 12

The vice presidents of production and sales and the controller hold line positions in most large organizations.

Accepted Answer

A) True 
 B)False

Question 13

Managerial information is for external as well as internal stakeholders.

Accepted Answer

A) True 
 B)False

Question 14

All of the following are product costs except

Accepted Answer

A)  direct materials 
B)  sales and administrative expenses 
C)  direct labor 
D)  factory overhead 
A)  direct materials 
B)  sales and administrative expenses 
C)  direct labor 
D)  factory overhead

Question 15

Which of the following is not true in regard to direct materials for a bakery?

Accepted Answer

A)  Flour and sugar would probably be direct materials. 
B)  Eggs would probably be a direct material. 
C)  Oil to lubricate factory machines would not be a direct material. 
D)  Paper cupcake liners, that become part of the product, must be accounted for as direct materials. 
A)  Flour and sugar would probably be direct materials. 
B)  Eggs would probably be a direct material. 
C)  Oil to lubricate factory machines would not be a direct material. 
D)  Paper cupcake liners, that become part of the product, must be accounted for as direct materials.

Question 16

An example of an eco-efficiency measure would be cost savings generated by recycling.

Accepted Answer

A) True 
 B)False

Question 17

Prime costs consist of direct materials, indirect materials, and direct labor.

Accepted Answer

A) True 
 B)False

Question 18

Match the items below for a bakery to the type of cost (a-d). Answers may be used more than once.
-Depreciation expense-factory

Accepted Answer

A) Direct materials 
B) Direct labor 
C) Factory overhead 
D) Nonmanufacturing cost
Challenging 
A) Direct materials 
B) Direct labor 
C) Factory overhead 
D) Nonmanufacturing cost
Challenging

Question 19

Match each description to the appropriate term (a-d). Answers may be used more than once.
-Rent on office facilities

Accepted Answer

A) Direct materials 
B) Selling and administrative expense 
C) Factory overhead 
D) Direct labor 
A) Direct materials 
B) Selling and administrative expense 
C) Factory overhead 
D) Direct labor

Question 20

Conversion costs are the combination of direct labor, direct material, and factory overhead costs.

Accepted Answer

A) True 
 B)False

Exam 18: Introduction to Managerial Accounting

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

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

The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

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

The following are some of the costs incurred by a cake factory. Identify them as either: -Advertising fees

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given. -Electricity costs to run the factory

For an automotive repair shop, the wages of mechanics would be classified as direct labor cost.

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

The payment of dividends is an example of a cost.

Labor costs that are directly traceable to the product are part of factory overhead.

The vice presidents of production and sales and the controller hold line positions in most large organizations.

Managerial information is for external as well as internal stakeholders.

All of the following are product costs except

Which of the following is not true in regard to direct materials for a bakery?

An example of an eco-efficiency measure would be cost savings generated by recycling.

Prime costs consist of direct materials, indirect materials, and direct labor.

Match the items below for a bakery to the type of cost (a-d). Answers may be used more than once. -Depreciation expense-factory

Match each description to the appropriate term (a-d). Answers may be used more than once. -Rent on office facilities

Conversion costs are the combination of direct labor, direct material, and factory overhead costs.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

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-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

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