Question 1

The beginning work in process inventory appears on both the balance sheet and the cost of goods manufactured schedule of a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 2

Management accountants would not

Accepted Answer

A) assist in budget planning. 
B) prepare reports primarily for external users. 
C) determine cost behavior. 
D) be concerned with the impact of cost and volume on profits. 
A) assist in budget planning. 
B) prepare reports primarily for external users. 
C) determine cost behavior. 
D) be concerned with the impact of cost and volume on profits.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is

Accepted Answer

A) manufacturing overhead. 
B) indirect materials. 
C) indirect labor. 
D) direct labor. 
A) manufacturing overhead. 
B) indirect materials. 
C) indirect labor. 
D) direct labor.

Question 5

Managerial accounting information is generally prepared for

Accepted Answer

A) stockholders. 
B) creditors. 
C) managers. 
D) regulatory agencies. 
A) stockholders. 
B) creditors. 
C) managers. 
D) regulatory agencies.

Question 6

A manufacturing company calculates cost of goods sold as follows:

Accepted Answer

A) Beginning FG inventory + cost of goods purchased - ending FG inventory. 
B) Ending FG inventory - cost of goods manufactured + beginning FG inventory. 
C) Beginning FG inventory - cost of goods manufactured - ending FG inventory. 
D) Beginning FG inventory + cost of goods manufactured - ending FG inventory. 
A) Beginning FG inventory + cost of goods purchased - ending FG inventory. 
B) Ending FG inventory - cost of goods manufactured + beginning FG inventory. 
C) Beginning FG inventory - cost of goods manufactured - ending FG inventory. 
D) Beginning FG inventory + cost of goods manufactured - ending FG inventory.

Question 7

When the physical association of raw materials with the finished product is too small to trace in terms of cost they are usually classified as indirect materials.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a manufacturing cost category?

Accepted Answer

A) Cost of goods sold 
B) Direct materials 
C) Direct labor 
D) Manufacturing overhead 
A) Cost of goods sold 
B) Direct materials 
C) Direct labor 
D) Manufacturing overhead

Question 9

Sales commissions are classified as

Accepted Answer

A) overhead costs 
B) period costs. 
C) product costs. 
D) indirect labor. 
A) overhead costs 
B) period costs. 
C) product costs. 
D) indirect labor.

Question 10

Reports prepared in financial accounting are general-purpose reports whereas reports prepared in managerial accounting are usually special-purpose reports.

Accepted Answer

A) True 
 B)False

Question 11

Cost of goods sold

Accepted Answer

A) only appears on merchandising companies' income statements. 
B) only appears on manufacturing companies' income statements. 
C) appears on both manufacturing and merchandising companies' income statements. 
D) is calculated exactly the same for merchandising and manufacturing companies. 
A) only appears on merchandising companies' income statements. 
B) only appears on manufacturing companies' income statements. 
C) appears on both manufacturing and merchandising companies' income statements. 
D) is calculated exactly the same for merchandising and manufacturing companies.

Question 12

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 13

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 14

The product cost that is most difficult to associate with a product is

Accepted Answer

A) direct materials. 
B) direct labor. 
C) manufacturing overhead. 
D) advertising. 
A) direct materials. 
B) direct labor. 
C) manufacturing overhead. 
D) advertising.

Question 15

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 16

If the cost of goods manufactured is less than the cost of goods sold which of the following is correct?

Accepted Answer

A) Finished Goods Inventory has increased. 
B) Work in Process Inventory has increased. 
C) Finished Goods Inventory has decreased. 
D) Work in Process Inventory has decreased. 
A) Finished Goods Inventory has increased. 
B) Work in Process Inventory has increased. 
C) Finished Goods Inventory has decreased. 
D) Work in Process Inventory has decreased.

Question 17

Benson Inc.'s accounting records reflect the following inventories: $\begin{array}{lcc} 
& \text { Dec. 31,2021 } & \text { Dec. 31,2022 } \
\hline  \text { Raw materials inventory } & \$ 80,000 & \$ 64,000 \
\text { Work in process inventory } & 104,000 & 116,000 \
\text { Finished qoods inventory } & 100,000 & 92,000
\end{array}$ During 2022 Benson purchased $1450000 of raw materials incurred direct labor costs of $250000 and incurred manufacturing overhead totaling $160000. Assume Benson's cost of goods manufactured for 2022 amounted to $1660000.How much would it report as cost of goods sold for the year?

Accepted Answer

A) $1668000 
B) $1568000 
C) $1760000 
D) $1652000 
A) $1668000 
B) $1568000 
C) $1760000 
D) $1652000

Question 18

For a manufacturing company which of the following is an example of a period cost rather than a product cost?

Accepted Answer

A) Depreciation on factory equipment 
B) Wages of salespersons 
C) Wages of machine operators 
D) Insurance on factory equipment 
A) Depreciation on factory equipment 
B) Wages of salespersons 
C) Wages of machine operators 
D) Insurance on factory equipment

Question 19

Direct materials and direct labor of a company total $8000000.If manufacturing overhead is $4000000 what is direct labor cost?

Accepted Answer

A) $4000000 
B) $8000000 
C) $0 
D) Cannot be determined from the information provided 
A) $4000000 
B) $8000000 
C) $0 
D) Cannot be determined from the information provided

Question 20

Managerial accounting information

Accepted Answer

A) pertains to the entity as a whole and is highly aggregated. 
B) pertains to subunits of the entity and may be very detailed. 
C) is prepared only once a year. 
D) is constrained by the requirements of generally accepted accounting principles. 
A) pertains to the entity as a whole and is highly aggregated. 
B) pertains to subunits of the entity and may be very detailed. 
C) is prepared only once a year. 
D) is constrained by the requirements of generally accepted accounting principles.

The beginning work in process inventory appears on both the balance sheet and the cost of goods manufactured schedule of a manufacturing company.

Management accountants would not

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

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is

Managerial accounting information is generally prepared for

A manufacturing company calculates cost of goods sold as follows:

When the physical association of raw materials with the finished product is too small to trace in terms of cost they are usually classified as indirect materials.

Which of the following is not a manufacturing cost category?

Sales commissions are classified as

Reports prepared in financial accounting are general-purpose reports whereas reports prepared in managerial accounting are usually special-purpose reports.

Cost of goods sold

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

Which of the following is not a management function?

The product cost that is most difficult to associate with a product is

As current technology changes manufacturing processes it is likely that direct

If the cost of goods manufactured is less than the cost of goods sold which of the following is correct?

For a manufacturing company which of the following is an example of a period cost rather than a product cost?

Direct materials and direct labor of a company total $8000000.If manufacturing overhead is $4000000 what is direct labor cost?

Managerial accounting information

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters

Exam 10: Cost-Volume-Profit

The beginning work in process inventory appears on both the balance sheet and the cost of goods manufactured schedule of a manufacturing company.

Management accountants would not

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

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is

Managerial accounting information is generally prepared for

A manufacturing company calculates cost of goods sold as follows:

When the physical association of raw materials with the finished product is too small to trace in terms of cost they are usually classified as indirect materials.

Which of the following is not a manufacturing cost category?

Sales commissions are classified as

Reports prepared in financial accounting are general-purpose reports whereas reports prepared in managerial accounting are usually special-purpose reports.

Cost of goods sold

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

Which of the following is not a management function?

The product cost that is most difficult to associate with a product is

As current technology changes manufacturing processes it is likely that direct

If the cost of goods manufactured is less than the cost of goods sold which of the following is correct?

For a manufacturing company which of the following is an example of a period cost rather than a product cost?

Direct materials and direct labor of a company total $8000000.If manufacturing overhead is $4000000 what is direct labor cost?

Managerial accounting information

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters