Question 1

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Accepted Answer

A) True 
 B)False

Question 2

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 3

The plant manager's salary in a manufacturing business would be considered an indirect cost.

Accepted Answer

A) True 
 B)False

Question 4

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

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 5

Work in process inventory on December 31 is $42,000. Work in process inventory decreased by 40% during the year. Total manufacturing costs incurred amount to $260,000. What is the cost of goods manufactured?

Accepted Answer

A)  $232,000 
B)  $302,000 
C)  $288,000 
D)  $190,000 
A)  $232,000 
B)  $302,000 
C)  $288,000 
D)  $190,000

Question 6

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Sprinkles for decoration  (indirect material)

Accepted Answer

A) Prime costs 
B) Conversion costs 
C) Both prime and conversion costs 
D) Neither prime nor conversion costs 
A) Prime costs 
B) Conversion costs 
C) Both prime and conversion costs 
D) Neither prime nor conversion costs

Question 7

Work in process inventory on December 31 of the current year is $44,000. Work in process inventory increased by 60% during the year. Cost of goods manufactured amounts to $275,000. What are the total manufacturing costs incurred in the current year?

Accepted Answer

A)  $291,500 
B)  $302,000 
C)  $275,750 
D)  $233,750 
A)  $291,500 
B)  $302,000 
C)  $275,750 
D)  $233,750

Question 8

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 9

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

Accepted Answer

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

Question 10

Which of the following costs are conversion costs?

Accepted Answer

A)  direct labor cost and factory overhead cost 
B)  direct materials cost and direct labor cost 
C)  factory overhead cost 
D)  direct materials cost and factory overhead cost 
A)  direct labor cost and factory overhead cost 
B)  direct materials cost and direct labor cost 
C)  factory overhead cost 
D)  direct materials cost and factory overhead cost

Question 11

Which of the following are reported on the income statement as part of cost of goods?

Accepted Answer

A)  administrative expenses 
B)  period costs 
C)  cost of goods manufactured 
D)  operating expenses 
A)  administrative expenses 
B)  period costs 
C)  cost of goods manufactured 
D)  operating expenses

Question 12

Prime costs consist of factory overhead and direct labor.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) Prime costs 
B) Conversion costs 
C) Both prime and conversion costs 
D) Neither prime nor conversion costs 
A) Prime costs 
B) Conversion costs 
C) Both prime and conversion costs 
D) Neither prime nor conversion costs

Question 14

For each of the following costs, classify them as either:
-Factory equipment depreciation

Accepted Answer

A) Direct costs 
B) Indirect costs 
C) Neither direct nor indirect costs 
A) Direct costs 
B) Indirect costs 
C) Neither direct nor indirect costs

Question 15

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 16

All of the following are examples of indirect labor except

Accepted Answer

A)  maintenance personnel 
B)  janitorial personnel 
C)  machine operators 
D)  plant managers 
A)  maintenance personnel 
B)  janitorial personnel 
C)  machine operators 
D)  plant managers

Question 17

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

Accepted Answer

A) Prime costs 
B) Conversion costs 
C) Both prime and conversion costs 
D) Neither prime nor conversion costs 
A) Prime costs 
B) Conversion costs 
C) Both prime and conversion costs 
D) Neither prime nor conversion costs

Question 18

Which of the following is most associated with financial accounting?

Accepted Answer

A)  can have both objective and subjective information 
B)  can be prepared periodically, or as needed 
C)  prepared in accordance with GAAP 
D)  can be prepared for the entity or segment 
A)  can have both objective and subjective information 
B)  can be prepared periodically, or as needed 
C)  prepared in accordance with GAAP 
D)  can be prepared for the entity or segment

Question 19

Which of the following will not be found on the balance sheet of a manufacturing company?

Accepted Answer

A)  cost of goods sold 
B)  materials 
C)  work in process 
D)  finished goods 
A)  cost of goods sold 
B)  materials 
C)  work in process 
D)  finished goods

Question 20

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

Exam 18: Introduction to Managerial Accounting

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

The plant manager's salary in a manufacturing business would be considered an indirect cost.

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

Work in process inventory on December 31 is $42,000. Work in process inventory decreased by 40% during the year. Total manufacturing costs incurred amount to $260,000. What is the cost of goods manufactured?

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Sprinkles for decoration (indirect material)

Work in process inventory on December 31 of the current year is $44,000. Work in process inventory increased by 60% during the year. Cost of goods manufactured amounts to $275,000. What are the total manufacturing costs incurred in the current year?

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

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

Which of the following costs are conversion costs?

Which of the following are reported on the income statement as part of cost of goods?

Prime costs consist of factory overhead and direct labor.

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

For each of the following costs, classify them as either: -Factory equipment depreciation

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

All of the following are examples of indirect labor except

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

Which of the following is most associated with financial accounting?

Which of the following will not be found on the balance sheet of a manufacturing company?

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

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

Filters