Question 1

Which one of the following is not a cost element in manufacturing a product?

Accepted Answer

A) Manufacturing overhead 
B) Direct materials 
C) Office salaries 
D) Direct labor 
A) Manufacturing overhead 
B) Direct materials 
C) Office salaries 
D) Direct labor

Question 2

Using the following information, compute the cost of direct materials used. $\begin{array}{lll}
\text { Raw materials inventory, January 1 } & \$ 30,000 \
\text { Raw materials inventory, December 31 } & 60,000 \
\text { Work in process, January 1 } & 27,000 \
\text { Work in process, December 31 } & 18,000 \
\text { Finished goods, January 1 } & 60,000 \
\text { Finished goods, December 31 } & 48,000\
\text { Raw materials purchases } & 1,500,000 \
\text { Direct labor } & 690,000 \
\text { Factory utilities } & 225,000 \
\text { Indirect labor } & 75,000 \
\text { Factory depreciation } & 500,000 \
\text { Operating expenses } & 630,000
\end{array}$

Accepted Answer

A) $1,590,000. 
B) $1,530,000. 
C) $1,500,000. 
D) $1,470,000. 
A) $1,590,000. 
B) $1,530,000. 
C) $1,500,000. 
D) $1,470,000.

Question 3

Property taxes on a manufacturing plant are an element of a $$\begin{array} { l c c } 
& \text { Product Cost } & \text { Period Cost } \
\text { a. } & \text { Yes } & \text { No } \
\text { b. } & \text { Yes } & \text { Yes } \
\text { c. } & \text { No } & \text { Yes } \
\text { d. } & \text { No } & \text { No }
\end{array}$$

Accepted Answer

The answer of Property taxes on a manufacturing plant are...

Question 4

Which of the following is not a separate management function?

Accepted Answer

A) Planning 
B) Directing 
C) Decision-making 
D) Controlling 
A) Planning 
B) Directing 
C) Decision-making 
D) Controlling

Question 5

For inventoriable costs to become expenses under the matching principle,

Accepted Answer

A) the product must be finished and in stock. 
B) the product must be expensed based on its percentage-of-completion. 
C) the product to which they attach must be sold. 
D) all accounts payable must be settled. 
A) the product must be finished and in stock. 
B) the product must be expensed based on its percentage-of-completion. 
C) the product to which they attach must be sold. 
D) all accounts payable must be settled.

Question 6

What term describes all business processes associated with providing a product or service?

Accepted Answer

A) The manufacturing chain 
B) The product chain 
C) The supply chain 
D) The value chain 
A) The manufacturing chain 
B) The product chain 
C) The supply chain 
D) The value chain

Question 7

Product costs are also called inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 8

Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.

Accepted Answer

A) True 
 B)False

Question 9

As current technology changes manufacturing processes, it is likely that direct

Accepted Answer

A) labor will increase. 
B) labor will decrease. 
C) materials will increase. 
D) materials will decrease. 
A) labor will increase. 
B) labor will decrease. 
C) materials will increase. 
D) materials will decrease.

Question 10

The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is the

Accepted Answer

A) cost of goods manufactured. 
B) total manufacturing overhead. 
C) total manufacturing costs. 
D) total cost of work in process. 
A) cost of goods manufactured. 
B) total manufacturing overhead. 
C) total manufacturing costs. 
D) total cost of work in process.

Question 11

The management function that requires managers to look ahead and establish objectives is

Accepted Answer

A) controlling. 
B) directing. 
C) planning. 
D) constraining. 
A) controlling. 
B) directing. 
C) planning. 
D) constraining.

Question 12

The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity.

Accepted Answer

A) True 
 B)False

Question 13

Many companies now focus on reducing defects in finished products with the goal of zero defects.This is called

Accepted Answer

A) Activity-based costing. 
B) Balanced scorecard. 
C) Value chain. 
D) Total quality management. 
A) Activity-based costing. 
B) Balanced scorecard. 
C) Value chain. 
D) Total quality management.

Question 14

Assuming that the cost of goods manufactured is $2,960,000 compute the cost of goods sold using the following information. $\begin{array}{lr}
\text { Raw materials inventory, January 1 } & 30,000 \
\text { Raw materials inventory, December 31 } & 60,000 \
\text { Work in process, January 1 } & 27,000 \
\text { Work in process, December } 31 & 18,000 \
\text { Finished goods, January 1 } & 60,000 \
\text { Finished goods, December 31 } & 48,000 \
\text { Raw materials purchases } & 1,500,000\
\text { Direct labor } & 690,000 \
\text { Factory utilities } & 225,000 \
\text { Indirect labor } & 75,000 \
\text { Factory depreciation } & 500,000 \
\text { Operating expenses } & 630,000
\end{array}$

Accepted Answer

A) $2,969,000. 
B) $2,912,000. 
C) $2,948,000. 
D) $2,972,000. 
A) $2,969,000. 
B) $2,912,000. 
C) $2,948,000. 
D) $2,972,000.

Question 15

What is "balanced" in the balanced scorecard approach?

Accepted Answer

A) The number of products produced 
B) The emphasis on financial and non-financial performance measurements 
C) The amount of costs allocated to products 
D) The number of defects found on each product 
A) The number of products produced 
B) The emphasis on financial and non-financial performance measurements 
C) The amount of costs allocated to products 
D) The number of defects found on each product

Question 16

Which of the following is not a management function?

Accepted Answer

A) Constraining 
B) Planning 
C) Controlling 
D) Directing 
A) Constraining 
B) Planning 
C) Controlling 
D) Directing

Question 17

Cotter pins and lubricants used irregularly in a production process are classified as

Accepted Answer

A) miscellaneous expense. 
B) direct materials. 
C) indirect materials. 
D) nonmaterial materials. 
A) miscellaneous expense. 
B) direct materials. 
C) indirect materials. 
D) nonmaterial materials.

Question 18

Gammil Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively.If direct materials used were $440,000, what was the cost of raw materials purchased?

Accepted Answer

A) $440,000. 
B) $470,000. 
C) $416,000. 
D) $464,000. 
A) $440,000. 
B) $470,000. 
C) $416,000. 
D) $464,000.

Question 19

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

Accepted Answer

A) Finished goods inventory 
B) Work in process inventory 
C) Cost of goods manufactured 
D) Raw materials inventory 
A) Finished goods inventory 
B) Work in process inventory 
C) Cost of goods manufactured 
D) Raw materials inventory

Question 20

As inventoriable costs expire, they become

Accepted Answer

A) selling expenses. 
B) gross profit. 
C) cost of goods sold. 
D) sales revenue. 
A) selling expenses. 
B) gross profit. 
C) cost of goods sold. 
D) sales revenue.

Which one of the following is not a cost element in manufacturing a product?

Property taxes on a manufacturing plant are an element of a Product Cost Period Cost a. Yes No b. Yes Yes c. No Yes d. No No

Which of the following is not a separate management function?

For inventoriable costs to become expenses under the matching principle,

What term describes all business processes associated with providing a product or service?

Product costs are also called inventoriable costs.

Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.

As current technology changes manufacturing processes, it is likely that direct

The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is the

The management function that requires managers to look ahead and establish objectives is

The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity.

Many companies now focus on reducing defects in finished products with the goal of zero defects.This is called

What is "balanced" in the balanced scorecard approach?

Which of the following is not a management function?

Cotter pins and lubricants used irregularly in a production process are classified as

Gammil Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively.If direct materials used were $440,000, what was the cost of raw materials purchased?

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

As inventoriable costs expire, they become

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Time Value of Money and Present Value Calculations

Filters

Exam 1: Introduction to Financial Statements

Which one of the following is not a cost element in manufacturing a product?

Property taxes on a manufacturing plant are an element of a Product Cost Period Cost a. Yes No b. Yes Yes c. No Yes d. No No

Which of the following is not a separate management function?

For inventoriable costs to become expenses under the matching principle,

What term describes all business processes associated with providing a product or service?

Product costs are also called inventoriable costs.

Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.

As current technology changes manufacturing processes, it is likely that direct

The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is the

The management function that requires managers to look ahead and establish objectives is

The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity.

Many companies now focus on reducing defects in finished products with the goal of zero defects.This is called

What is "balanced" in the balanced scorecard approach?

Which of the following is not a management function?

Cotter pins and lubricants used irregularly in a production process are classified as

Gammil Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively.If direct materials used were $440,000, what was the cost of raw materials purchased?

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

As inventoriable costs expire, they become

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Time Value of Money and Present Value Calculations

Filters