Question 1

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 2

Which of the following statements is true?

Accepted Answer

A) In real life, the curvilinear nature of variable costs is questionable. 
B) In real life, fixed costs are fixed in total and do not change at various activity levels. 
C) Within the relevant range, there is rarely a straight-line relationship for both variable and fixed costs. 
D) Within the relevant range the linear assumption is valid and useful for cost behaviour analysis. 
A) In real life, the curvilinear nature of variable costs is questionable. 
B) In real life, fixed costs are fixed in total and do not change at various activity levels. 
C) Within the relevant range, there is rarely a straight-line relationship for both variable and fixed costs. 
D) Within the relevant range the linear assumption is valid and useful for cost behaviour analysis.

Question 3

Which of the following would most likely be included in manufacturing overhead?

Accepted Answer

A) rent on the company's store 
B) insurance on a delivery truck 
C) rent on the company's factory 
D) an oil change on a delivery truck 
A) rent on the company's store 
B) insurance on a delivery truck 
C) rent on the company's factory 
D) an oil change on a delivery truck

Question 4

Which of the following is a direct cost of a hotel?

Accepted Answer

A) meals in the restaurant 
B) room cleaning 
C) room service 
D) cleaning the lobby 
A) meals in the restaurant 
B) room cleaning 
C) room service 
D) cleaning the lobby

Question 5

Finished goods inventory for a manufacturing company is equivalent to merchandise inventory for a merchandising company.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Costs of goods manufactured of SuperK Company are shown below: $\begin{array}{c}
\text {Superk Company }\
\text {Cost of Goods manufactured}\
\text { Year Ending December 31, 2016}\
\begin{array}{lll}
\text {Beginning work in process:}\
\text {Direct materials:}\
\text {Beginning raw materials.}\
\text {Raw material purchases}\
\text {Total raw materials available for use}\
\text {Ending raw materials}\
\text {Direct materials used}\
\text {Direct Labour.}\
\text {Total manufacturing overhead}\
\text {Ending work in process}\
\text {Cost of Goods Manufactured}
\end{array}
\begin{array}{lll}
&\$15,000\
\
\$14,000\
\underline{22,000}\
36,000\
\underline{5,500}\
&30,500\
&6,000\
&\underline{10,500}\
&\underline{18,000}\
&\$44,000
\end{array}
\end{array}$
 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 8

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 9

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 10

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 11

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 12

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 13

Use the following information for questions 
Caltreck Manufacturing Inc.'s accounting records reflect the following inventories: $\begin{array}{lrr}&\text { Dec. } 31,2015&\text { Dec. } 31,2016\
\text { Raw materials inventory } & \$ 100,000 & \$ 80,000 \
\text { Work in process inventory } & 130,000 & 145,000 \
\text { Finished goods inventory } & 125,000 & 115,000
\end{array}$ During 2016, 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 2016 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 14

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.

Accepted Answer

A) True 
 B)False

Question 15

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

Question 16

In calculating gross profit for a manufacturing company, the cost of goods sold is deducted from net sales.

Accepted Answer

A) True 
 B)False

Question 17

The high-low method is a quick means of separating fixed and variable costs.

Accepted Answer

A) True 
 B)False

Question 18

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.

Question 19

If the ending work in process inventory is less than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

Accepted Answer

A) True 
 B)False

Question 20

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.

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

Which of the following statements is true?

Which of the following would most likely be included in manufacturing overhead?

Which of the following is a direct cost of a hotel?

Finished goods inventory for a manufacturing company is equivalent to merchandise inventory for a merchandising company.

Which of the following is considered manufacturing overhead?

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

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

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

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

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.

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?

In calculating gross profit for a manufacturing company, the cost of goods sold is deducted from net sales.

The high-low method is a quick means of separating fixed and variable costs.

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

If the ending work in process inventory is less than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

Manufacturing overhead is a

Managerial Accounting

Job-Order Cost Accounting

Process Cost Accounting

Activity-Based Costing

Decision-Making: Costvolumeprofit

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

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

Which of the following statements is true?

Which of the following would most likely be included in manufacturing overhead?

Which of the following is a direct cost of a hotel?

Finished goods inventory for a manufacturing company is equivalent to merchandise inventory for a merchandising company.

Which of the following is considered manufacturing overhead?

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

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

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

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

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.

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?

In calculating gross profit for a manufacturing company, the cost of goods sold is deducted from net sales.

The high-low method is a quick means of separating fixed and variable costs.

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

If the ending work in process inventory is less than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

Manufacturing overhead is a

Managerial Accounting

Job-Order Cost Accounting

Process Cost Accounting

Activity-Based Costing

Decision-Making: Costvolumeprofit

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