Question 1

Finished goods inventory appears on a cost of goods manufactured schedule.

Accepted Answer

A) True 
 B)False

Question 2

Fees for office telephones are

Accepted Answer

A) fixed period costs. 
B) mixed period costs. 
C) variable period costs. 
D) direct, fixed, or variable period costs. 
A) fixed period costs. 
B) mixed period costs. 
C) variable period costs. 
D) direct, fixed, or variable period costs.

Question 3

For future planning and predicting purposes, it is important for managerial accountants to separate fixed and variable costs within total mixed costs.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Which one of the following would NOT be classified as manufacturing overhead?

Accepted Answer

A) indirect materials 
B) insurance on factory building 
C) indirect labour 
D) direct materials 
A) indirect materials 
B) insurance on factory building 
C) indirect labour 
D) direct materials

Question 6

Which one of the following is classified as direct labour?

Accepted Answer

A) flour in a bakery 
B) wages of factory janitors 
C) bottlers of cola in a bottling company 
D) copy machine costs at a copy shop 
A) flour in a bakery 
B) wages of factory janitors 
C) bottlers of cola in a bottling company 
D) copy machine costs at a copy shop

Question 7

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 8

Which of the following would most likely be considered direct material?

Accepted Answer

A) wood used to make a chair 
B) lubrication for factory machines 
C) glue used to make a chair 
D) cleaning products used in a factory 
A) wood used to make a chair 
B) lubrication for factory machines 
C) glue used to make a chair 
D) cleaning products used in a factory

Question 9

Mixed costs are comprised of both fixed costs and variable costs, and as a result, mixed costs increase proportionately with an increase in activity level.

Accepted Answer

A) True 
 B)False

Question 10

Within the relevant range a valid argument can be made for the assumption of linearity of variable costs.

Accepted Answer

A) True 
 B)False

Question 11

Total product costs are deducted from total cost of work in process to calculate cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 12

Variable costs are fixed on a per-unit basis and variable in total.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would most likely be considered direct labour?

Accepted Answer

A) a worker installing components in a computer 
B) a maintenance worker 
C) a security guard 
D) a sales person 
A) a worker installing components in a computer 
B) a maintenance worker 
C) a security guard 
D) a sales person

Question 14

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.

Question 15

Which one of the following represents a period cost?

Accepted Answer

A) company advertisement 
B) depreciation of plant equipment 
C) production manager's salary 
D) direct materials 
A) company advertisement 
B) depreciation of plant equipment 
C) production manager's salary 
D) direct materials

Question 16

At the upper and lower limits of the relevant range of company activity, linearity of variable costs is a given.

Accepted Answer

A) True 
 B)False

Question 17

The relevant range can be commonly understood to mean

Accepted Answer

A) the normal range of output (activity)within which the company operates. 
B) the range wherein fixed costs are always fixed. 
C) the range wherein variable costs are strictly curvilinear. 
D) the range wherein fixed costs are strictly proportional to the level of activity. 
A) the normal range of output (activity)within which the company operates. 
B) the range wherein fixed costs are always fixed. 
C) the range wherein variable costs are strictly curvilinear. 
D) the range wherein fixed costs are strictly proportional to the level of activity.

Question 18

Rezell Combines, Inc.has $4,000 of finished goods inventory as of December 31, 2016.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 19

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

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

Accepted Answer

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

Question 20

Which of the following statements is true?

Accepted Answer

A) Advertising is a product cost and a plant manager's salary is a period cost. 
B) Advertising is a period cost and a plant manager's salary is a manufacturing overhead cost. 
C) Advertising is a period cost and a plant manager's salary is a period cost. 
D) Advertising is a product cost and a plant manager's salary is a manufacturing overhead cost. 
A) Advertising is a product cost and a plant manager's salary is a period cost. 
B) Advertising is a period cost and a plant manager's salary is a manufacturing overhead cost. 
C) Advertising is a period cost and a plant manager's salary is a period cost. 
D) Advertising is a product cost and a plant manager's salary is a manufacturing overhead cost.

Finished goods inventory appears on a cost of goods manufactured schedule.

Fees for office telephones are

For future planning and predicting purposes, it is important for managerial accountants to separate fixed and variable costs within total mixed costs.

What are the components of total manufacturing costs?

Which one of the following would NOT be classified as manufacturing overhead?

Which one of the following is classified as direct labour?

How is the cost of goods manufactured calculated?

Which of the following would most likely be considered direct material?

Mixed costs are comprised of both fixed costs and variable costs, and as a result, mixed costs increase proportionately with an increase in activity level.

Within the relevant range a valid argument can be made for the assumption of linearity of variable costs.

Total product costs are deducted from total cost of work in process to calculate cost of goods manufactured.

Variable costs are fixed on a per-unit basis and variable in total.

Which of the following would most likely be considered direct labour?

Cost of goods sold applies to

Which one of the following represents a period cost?

At the upper and lower limits of the relevant range of company activity, linearity of variable costs is a given.

The relevant range can be commonly understood to mean

Rezell Combines, Inc.has $4,000 of finished goods inventory as of December 31, 2016.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?

Which of the following statements is true?

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

Finished goods inventory appears on a cost of goods manufactured schedule.

Fees for office telephones are

For future planning and predicting purposes, it is important for managerial accountants to separate fixed and variable costs within total mixed costs.

What are the components of total manufacturing costs?

Which one of the following would NOT be classified as manufacturing overhead?

Which one of the following is classified as direct labour?

How is the cost of goods manufactured calculated?

Which of the following would most likely be considered direct material?

Mixed costs are comprised of both fixed costs and variable costs, and as a result, mixed costs increase proportionately with an increase in activity level.

Within the relevant range a valid argument can be made for the assumption of linearity of variable costs.

Total product costs are deducted from total cost of work in process to calculate cost of goods manufactured.

Variable costs are fixed on a per-unit basis and variable in total.

Which of the following would most likely be considered direct labour?

Cost of goods sold applies to

Which one of the following represents a period cost?

At the upper and lower limits of the relevant range of company activity, linearity of variable costs is a given.

The relevant range can be commonly understood to mean

Rezell Combines, Inc.has $4,000 of finished goods inventory as of December 31, 2016.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?

Which of the following statements is true?

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