Question 1

While no two company structures are identical, most large companies are organized in terms of verticals and diagonals.

Accepted Answer

A) True 
 B)False

Question 2

Match the items below for a cake factory to the type of cost (a-c).
-Depreciation on oven
A)Prime cost
B)Conversion cost
C)Both prime cost and conversion cost

Accepted Answer

The answer of Match the items below for a cake...

Question 3

All of the following could be considered a direct material except

Accepted Answer

A) steel 
B) fabric 
C) glue 
D) lumber 
A) steel 
B) fabric 
C) glue 
D) lumber

Question 4

Product costs

Accepted Answer

A) appear only on the balance sheet 
B) appear only on the income statement 
C) are expensed as costs are incurred for direct labor, direct materials, and factory overhead 
D) appear on both the income statement and balance sheet 
A) appear only on the balance sheet 
B) appear only on the income statement 
C) are expensed as costs are incurred for direct labor, direct materials, and factory overhead 
D) appear on both the income statement and balance sheet

Question 5

The payment of dividends is an example of a cost.

Accepted Answer

A) True 
 B)False

Question 6

Conversion costs are

Accepted Answer

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

Question 7

Period (nonmanufacturing) costs are classified into two categories: selling and administrative.

Accepted Answer

A) True 
 B)False

Question 8

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. The cost of goods manufactured is

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 9

Laramie Technologies had the following data:   Determine the cost of goods manufactured.

Accepted Answer

Cost of Goods Manufa

Question 10

On the income statement of a manufacturing company, which of the following replaces purchases in the "Cost of goods sold" section of a retail company?

Accepted Answer

A) finished goods 
B) cost of merchandise available 
C) cost of goods manufactured 
D) work in process 
A) finished goods 
B) cost of merchandise available 
C) cost of goods manufactured 
D) work in process

Question 11

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 12

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given.a.Direct
b.Indirect
-Lubricants used on the bar stool manufacturing equipment

Accepted Answer

The answer of Bartel Corporation produces bar stools for restaurants....

Question 13

Match the items below for a bakery to the type of cost (a-d).
-Sprinkles for decoration (indirect material)
A)Direct materials
B)Direct labor
C)Factory overhead
D)Nonmanufacturing cost

Accepted Answer

The answer of Match the items below for a bakery...

Question 14

Which of the following statements is false?

Accepted Answer

A) There is no overlap between financial and managerial accounting. 
B) Managerial accounting sometimes relies on past information. 
C) Managerial accounting does not need to conform to GAAP. 
D) Financial accounting must conform to GAAP. 
A) There is no overlap between financial and managerial accounting. 
B) Managerial accounting sometimes relies on past information. 
C) Managerial accounting does not need to conform to GAAP. 
D) Financial accounting must conform to GAAP.

Question 15

Zoe Corporation has the following information for the month of March:   Prepare (a) a statement of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c) the "Inventory" section of the balance sheet.

Accepted Answer

The answer of Zoe Corporation has the following information for...

Question 16

Cost of goods manufactured during the year is $240,000, and work in process inventory on December 31 is $50,000. Work in process inventory during the year decreased by 60%. Total manufacturing costs incurred are

Accepted Answer

A) $190,000 
B) $165,000 
C) $290,000 
D) $315,000 
A) $190,000 
B) $165,000 
C) $290,000 
D) $315,000

Question 17

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 18

Lower utilization rates are considered favorable, while higher utilization rates are considered unfavorable.

Accepted Answer

A) True 
 B)False

Question 19

Controlling deals with choosing goals and deciding how to achieve them.

Accepted Answer

A) True 
 B)False

Question 20

Putney Company reports the following information:   Compute: 
a. product costs
b. period costs

Accepted Answer

a. Product Costs = $7,300 + $4

Exam 15: Introduction to Managerial Accounting

While no two company structures are identical, most large companies are organized in terms of verticals and diagonals.

Match the items below for a cake factory to the type of cost (a-c). -Depreciation on oven A)Prime cost B)Conversion cost C)Both prime cost and conversion cost

All of the following could be considered a direct material except

Product costs

The payment of dividends is an example of a cost.

Conversion costs are

Period (nonmanufacturing) costs are classified into two categories: selling and administrative.

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. The cost of goods manufactured is

Laramie Technologies had the following data: Determine the cost of goods manufactured.

On the income statement of a manufacturing company, which of the following replaces purchases in the "Cost of goods sold" section of a retail company?

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given.a.Direct b.Indirect -Lubricants used on the bar stool manufacturing equipment

Match the items below for a bakery to the type of cost (a-d). -Sprinkles for decoration (indirect material) A)Direct materials B)Direct labor C)Factory overhead D)Nonmanufacturing cost

Which of the following statements is false?

Zoe Corporation has the following information for the month of March: Prepare (a) a statement of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c) the "Inventory" section of the balance sheet.

Cost of goods manufactured during the year is $240,000, and work in process inventory on December 31 is $50,000. Work in process inventory during the year decreased by 60%. Total manufacturing costs incurred are

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory.

Lower utilization rates are considered favorable, while higher utilization rates are considered unfavorable.

Controlling deals with choosing goals and deciding how to achieve them.

Putney Company reports the following information: Compute: a. product costs b. period costs

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Cost Systems

Activity-Based Costing

Support Department and Joint Cost Allocation

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

The Balanced Scorecard and Corporate Social Responsibility

Investments

Filters