Question 1

Inventory accounts for a manufacturer include all of the following except:

Accepted Answer

A) Merchandise Inventory. 
B) Finished Goods. 
C) Work in Process. 
D) Materials. 
A) Merchandise Inventory. 
B) Finished Goods. 
C) Work in Process. 
D) Materials.

Question 2

Taylor Logan is an accountant with the Tanner Corporation. Taylor's duties include preparing reports that focus on both historical and estimated data needed to conduct ongoing operations and do long-range planning. Taylor is a(n)

Accepted Answer

A) certified financial planner. 
B) management accountant. 
C) financial accountant. 
D) auditor. 
A) certified financial planner. 
B) management accountant. 
C) financial accountant. 
D) auditor.

Question 3

Cost accounting differs from financial accounting in that financial accounting:

Accepted Answer

A) Is mostly concerned with external financial reporting. 
B) Is mostly concerned with individual departments of the company. 
C) Provides the additional information required for special reports to management. 
D) Puts more emphasis on future operations. 
A) Is mostly concerned with external financial reporting. 
B) Is mostly concerned with individual departments of the company. 
C) Provides the additional information required for special reports to management. 
D) Puts more emphasis on future operations.

Question 4

Which of the following is most likely to be considered an indirect material in the manufacture of a sofa?

Accepted Answer

A) Lumber 
B) Glue 
C) Fabric 
D) Foam rubber 
A) Lumber 
B) Glue 
C) Fabric 
D) Foam rubber

Question 5

Factory overhead would include:

Accepted Answer

A) Wages of office clerk. 
B) Sales manager's salary. 
C) Supervisor's salary. 
D) Tax accountant's salary. 
A) Wages of office clerk. 
B) Sales manager's salary. 
C) Supervisor's salary. 
D) Tax accountant's salary.

Question 6

The business entity that converts purchased raw materials into finished goods by using labor, technology, and facilities is a:

Accepted Answer

A) Manufacturer. 
B) Merchandiser. 
C) Service business. 
D) Not-for-profit service agency. 
A) Manufacturer. 
B) Merchandiser. 
C) Service business. 
D) Not-for-profit service agency.

Question 7

The following data were taken from Mansfield Merchandisers on January 31:   What was the Cost of goods sold in January?

Accepted Answer

A) $585,000 
B) $650,000 
C) $620,000 
D) $535,000 
A) $585,000 
B) $650,000 
C) $620,000 
D) $535,000

Question 8

Mountain Company produced 20,000 blankets in June to be sold during the holiday season. The manufacturing costs were:   The cost per blanket is:

Accepted Answer

A) $6.25. 
B) $9.00. 
C) $12.00. 
D) $14.75. 
A) $6.25. 
B) $9.00. 
C) $12.00. 
D) $14.75.

Question 9

Mountain Company produced 20,000 blankets in June to be sold during the holiday season. The manufacturing costs were:   Management has decided that the mark-on percentage necessary to cover the product's share of selling and administrative expenses and to earn a satisfactory profit is 30%. The selling price per blanket should be:

Accepted Answer

A) $12.00. 
B) $15.60. 
C) $23.60. 
D) $31.20. 
A) $12.00. 
B) $15.60. 
C) $23.60. 
D) $31.20.

Question 10

According to the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice, performing professional duties in accordance with relevant laws, regulations and technical standards is a component of which standard?

Accepted Answer

A) Competence 
B) Confidentiality 
C) Integrity 
D) Credibility 
A) Competence 
B) Confidentiality 
C) Integrity 
D) Credibility

Question 11

Factory overhead includes:

Accepted Answer

A) Indirect labor but not indirect materials. 
B) Indirect materials but not indirect labor. 
C) All manufacturing costs, except indirect materials and indirect labor. 
D) All manufacturing costs, except direct materials and direct labor. 
A) Indirect labor but not indirect materials. 
B) Indirect materials but not indirect labor. 
C) All manufacturing costs, except indirect materials and indirect labor. 
D) All manufacturing costs, except direct materials and direct labor.

Question 12

The term "prime cost" refers to:

Accepted Answer

A) The sum of direct labor costs and all factory overhead costs. 
B) The sum of direct material costs and direct labor costs. 
C) All costs associated with manufacturing other than direct labor costs and direct material costs. 
D) Manufacturing costs incurred to produce units of output. 
A) The sum of direct labor costs and all factory overhead costs. 
B) The sum of direct material costs and direct labor costs. 
C) All costs associated with manufacturing other than direct labor costs and direct material costs. 
D) Manufacturing costs incurred to produce units of output.

Question 13

The Institute of Management Accountants (IMA) Statement of Professional Practice includes all of the following standards except:

Accepted Answer

A) Confidentiality. 
B) Commitment. 
C) Integrity. 
D) Competence. 
A) Confidentiality. 
B) Commitment. 
C) Integrity. 
D) Competence.

Question 14

The Macke Company's payroll summary showed the following in November:   What is the amount that would be included in direct labor in November?

Accepted Answer

A) $25,000 
B) $60,000 
C) $95,000 
D) $120,000 
A) $25,000 
B) $60,000 
C) $95,000 
D) $120,000

Question 15

Tom Jones, a management accountant, was faced with an ethical conflict at the office. According to the Institute of Management Accountants' Statement of Professional Practice, the first action Tom should pursue is to:

Accepted Answer

A) follow his organization's established policies on the resolution of such conflict. 
B) contact the local newspaper. 
C) contact the company's audit committee. 
D) consult an attorney. 
A) follow his organization's established policies on the resolution of such conflict. 
B) contact the local newspaper. 
C) contact the company's audit committee. 
D) consult an attorney.

Question 16

Under a job order system of cost accounting, the dollar amount of the entry to transfer inventory from Work in Process to Finished Goods is the sum of the costs charged to all jobs:

Accepted Answer

A) In process during the period. 
B) Completed and sold during the period. 
C) Completed during the period. 
D) Started in process during the period. 
A) In process during the period. 
B) Completed and sold during the period. 
C) Completed during the period. 
D) Started in process during the period.

Question 17

Control is the process of monitoring the company's operations to determine whether the company's objectives are being achieved. Effective control is achieved through all of the following except:

Accepted Answer

A) periodically measuring and comparing company results. 
B) assigning responsibility for costs to employees responsible for those costs. 
C) constantly monitoring employees to ensure they do exactly as they are told. 
D) taking necessary corrective action when variances warrant doing so. 
A) periodically measuring and comparing company results. 
B) assigning responsibility for costs to employees responsible for those costs. 
C) constantly monitoring employees to ensure they do exactly as they are told. 
D) taking necessary corrective action when variances warrant doing so.

Question 18

Aaron Smith is the supervisor of the Machining Department of Bennett Corporation. He has control over and is responsible for manufacturing costs traced to the department. The Machining Department is an example of a(n):

Accepted Answer

A) cost center. 
B) inventory center. 
C) supervised work center. 
D) worker's center. 
A) cost center. 
B) inventory center. 
C) supervised work center. 
D) worker's center.

Question 19

The following data were taken from the general ledger of Data Corp., a retailer of computers and accessories:   Compute the cost of goods sold for the month of August.

Accepted Answer

The answer of The following data were taken from the...

Question 20

Selected data concerning the past fiscal year's operations (000's omitted) of the Stanley Manufacturing Company are presented below:   The cost of goods manufactured during the year was:

Accepted Answer

A) $735. 
B) $710. 
C) $665. 
D) $705. 
A) $735. 
B) $710. 
C) $665. 
D) $705.

Inventory accounts for a manufacturer include all of the following except:

Taylor Logan is an accountant with the Tanner Corporation. Taylor's duties include preparing reports that focus on both historical and estimated data needed to conduct ongoing operations and do long-range planning. Taylor is a(n)

Cost accounting differs from financial accounting in that financial accounting:

Which of the following is most likely to be considered an indirect material in the manufacture of a sofa?

Factory overhead would include:

The business entity that converts purchased raw materials into finished goods by using labor, technology, and facilities is a:

The following data were taken from Mansfield Merchandisers on January 31: What was the Cost of goods sold in January?

Mountain Company produced 20,000 blankets in June to be sold during the holiday season. The manufacturing costs were: The cost per blanket is:

According to the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice, performing professional duties in accordance with relevant laws, regulations and technical standards is a component of which standard?

Factory overhead includes:

The term "prime cost" refers to:

The Institute of Management Accountants (IMA) Statement of Professional Practice includes all of the following standards except:

The Macke Company's payroll summary showed the following in November: What is the amount that would be included in direct labor in November?

Tom Jones, a management accountant, was faced with an ethical conflict at the office. According to the Institute of Management Accountants' Statement of Professional Practice, the first action Tom should pursue is to:

Under a job order system of cost accounting, the dollar amount of the entry to transfer inventory from Work in Process to Finished Goods is the sum of the costs charged to all jobs:

Control is the process of monitoring the company's operations to determine whether the company's objectives are being achieved. Effective control is achieved through all of the following except:

Aaron Smith is the supervisor of the Machining Department of Bennett Corporation. He has control over and is responsible for manufacturing costs traced to the department. The Machining Department is an example of a(n):

The following data were taken from the general ledger of Data Corp., a retailer of computers and accessories: Compute the cost of goods sold for the month of August.

Selected data concerning the past fiscal year's operations (000's omitted) of the Stanley Manufacturing Company are presented below: The cost of goods manufactured during the year was:

Accounting for Materials

Accounting for Labor

Accounting for Factory Overhead

Process Cost Accounting General Procedures

Process Cost Accounting Additional Procedures

Master Budget and Flexible Budgeting

Standard Cost Accounting Materials, Labor, and Factory Overhead

Cost Accounting for Service Businesses

Cost Analysis for Management Decision Making

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Exam 1: Introduction to Cost Accounting

Inventory accounts for a manufacturer include all of the following except:

Taylor Logan is an accountant with the Tanner Corporation. Taylor's duties include preparing reports that focus on both historical and estimated data needed to conduct ongoing operations and do long-range planning. Taylor is a(n)

Cost accounting differs from financial accounting in that financial accounting:

Which of the following is most likely to be considered an indirect material in the manufacture of a sofa?

Factory overhead would include:

The business entity that converts purchased raw materials into finished goods by using labor, technology, and facilities is a:

The following data were taken from Mansfield Merchandisers on January 31: What was the Cost of goods sold in January?

Mountain Company produced 20,000 blankets in June to be sold during the holiday season. The manufacturing costs were: The cost per blanket is:

According to the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice, performing professional duties in accordance with relevant laws, regulations and technical standards is a component of which standard?

Factory overhead includes:

The term "prime cost" refers to:

The Institute of Management Accountants (IMA) Statement of Professional Practice includes all of the following standards except:

The Macke Company's payroll summary showed the following in November: What is the amount that would be included in direct labor in November?

Tom Jones, a management accountant, was faced with an ethical conflict at the office. According to the Institute of Management Accountants' Statement of Professional Practice, the first action Tom should pursue is to:

Under a job order system of cost accounting, the dollar amount of the entry to transfer inventory from Work in Process to Finished Goods is the sum of the costs charged to all jobs:

Control is the process of monitoring the company's operations to determine whether the company's objectives are being achieved. Effective control is achieved through all of the following except:

Aaron Smith is the supervisor of the Machining Department of Bennett Corporation. He has control over and is responsible for manufacturing costs traced to the department. The Machining Department is an example of a(n):

The following data were taken from the general ledger of Data Corp., a retailer of computers and accessories: Compute the cost of goods sold for the month of August.

Selected data concerning the past fiscal year's operations (000's omitted) of the Stanley Manufacturing Company are presented below: The cost of goods manufactured during the year was:

Accounting for Materials

Accounting for Labor

Accounting for Factory Overhead

Process Cost Accounting General Procedures

Process Cost Accounting Additional Procedures

Master Budget and Flexible Budgeting

Standard Cost Accounting Materials, Labor, and Factory Overhead

Cost Accounting for Service Businesses

Cost Analysis for Management Decision Making

Filters