Question 1

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 2

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 3

Assuming that the total manufacturing costs are $3400000 compute the cost of goods manufactured using the information below. $\begin{array}{lr}
\text { Raw materials inventory, January 1 } &\$ 30,000 \
\text { Raw materials inventory, December 31 } & 60,000 \
\text { Work in process, January 1 } & 27,000 \
\text { Work in process, December 31 } & 18,000 \
\text { Finished goods, January 1 } & 60,000 \
\text { Finished goods, December 31 } & 48,000 \
\text { Raw materials purchases } & 1,800,000 \
\text { Direct labor } & 890,000 \
\text { Factory utilities } & 225,000 \
\text { Indirect labor } & 75,000 \
\text { Factory depreciation } & 500,000 \
\text { Operating expenses } & 630,000
\end{array}$

Accepted Answer

A) $3421000. 
B) $3391000. 
C) $3409000. 
D) $3142000. 
A) $3421000. 
B) $3391000. 
C) $3409000. 
D) $3142000.

Question 4

The major reporting standard for presenting managerial accounting information is

Accepted Answer

A) relevance. 
B) generally accepted accounting principles. 
C) the cost principle. 
D) the current tax law. 
A) relevance. 
B) generally accepted accounting principles. 
C) the cost principle. 
D) the current tax law.

Question 5

Which of the following is not classified as direct labor?

Accepted Answer

A) Bottlers of beer in a brewery 
B) Copy machine operators at a copy shop 
C) Wages of supervisors 
D) Bakers in a bakery 
A) Bottlers of beer in a brewery 
B) Copy machine operators at a copy shop 
C) Wages of supervisors 
D) Bakers in a bakery

Question 6

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 7

Managerial accounting applies to each of the following types of businesses except

Accepted Answer

A) service firms. 
B) merchandising firms. 
C) manufacturing firms. 
D) Managerial accounting applies to all types of firms. 
A) service firms. 
B) merchandising firms. 
C) manufacturing firms. 
D) Managerial accounting applies to all types of firms.

Question 8

Direct materials costs and indirect materials costs are manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 9

Directing includes

Accepted Answer

A) providing a framework for management to have criteria to terminate employees when needed. 
B) running a department under quality control standards universally accepted. 
C) coordinating a company's diverse activities and human resources to produce a smooth-running operation. 
D) developing a complex performance ranking system to give certain high performers good raises. 
A) providing a framework for management to have criteria to terminate employees when needed. 
B) running a department under quality control standards universally accepted. 
C) coordinating a company's diverse activities and human resources to produce a smooth-running operation. 
D) developing a complex performance ranking system to give certain high performers good raises.

Question 10

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

Accepted Answer

A) period costs. 
B) nonmanufacturing costs. 
C) selling and administrative expenses. 
D) manufacturing overhead. 
A) period costs. 
B) nonmanufacturing costs. 
C) selling and administrative expenses. 
D) manufacturing overhead.

Question 11

The supply chain is all the activities associated with providing a product or service.

Accepted Answer

A) True 
 B)False

Question 12

Both direct materials and indirect materials are

Accepted Answer

A) raw materials. 
B) manufacturing overhead. 
C) merchandise inventory. 
D) sold directly to customers by a manufacturing company. 
A) raw materials. 
B) manufacturing overhead. 
C) merchandise inventory. 
D) sold directly to customers by a manufacturing company.

Question 13

For the work of factory employees to be considered as direct labor the work must be conveniently and

Accepted Answer

A) materially associated with raw materials conversion. 
B) periodically associated with raw materials conversion. 
C) physically associated with raw materials conversion. 
D) promptly associated with raw materials conversion. 
A) materially associated with raw materials conversion. 
B) periodically associated with raw materials conversion. 
C) physically associated with raw materials conversion. 
D) promptly associated with raw materials conversion.

Question 14

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 15

The sum of the direct materials costs direct labor costs and beginning work in process is the total manufacturing costs for the year.

Accepted Answer

A) True 
 B)False

Question 16

Penner Company reported total manufacturing costs of $450000 manufacturing overhead totaling $78000 and direct materials totaling $96000.How much is direct labor cost?

Accepted Answer

A) Cannot be determined from the information provided. 
B) $624000 
C) $354000 
D) $276000 
A) Cannot be determined from the information provided. 
B) $624000 
C) $354000 
D) $276000

Question 17

Raw materials inventory shows the cost of completed goods available for sale to customers.

Accepted Answer

A) True 
 B)False

Question 18

Which one of the following is an example of a period cost?

Accepted Answer

A) A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer 
B) Workers' compensation insurance on factory workers' wages allocated to the factory 
C) A box cost associated with computers 
D) A manager's salary for work that is done in the corporate head office 
A) A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer 
B) Workers' compensation insurance on factory workers' wages allocated to the factory 
C) A box cost associated with computers 
D) A manager's salary for work that is done in the corporate head office

Question 19

If the total manufacturing costs are greater than the cost of goods manufactured which of the following is correct?

Accepted Answer

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

Question 20

Which one of the following is not considered as material costs?

Accepted Answer

A) Partially completed motor engines for a motorcycle plant 
B) Bolts used in manufacturing the compressor of an engine 
C) Rivets for the wings of a new commercial jet aircraft 
D) Lumber used to build tables 
A) Partially completed motor engines for a motorcycle plant 
B) Bolts used in manufacturing the compressor of an engine 
C) Rivets for the wings of a new commercial jet aircraft 
D) Lumber used to build tables

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

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

The major reporting standard for presenting managerial accounting information is

Which of the following is not classified as direct labor?

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

Managerial accounting applies to each of the following types of businesses except

Direct materials costs and indirect materials costs are manufacturing overhead.

Directing includes

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

The supply chain is all the activities associated with providing a product or service.

Both direct materials and indirect materials are

For the work of factory employees to be considered as direct labor the work must be conveniently and

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

The sum of the direct materials costs direct labor costs and beginning work in process is the total manufacturing costs for the year.

Penner Company reported total manufacturing costs of $450000 manufacturing overhead totaling $78000 and direct materials totaling $96000.How much is direct labor cost?

Raw materials inventory shows the cost of completed goods available for sale to customers.

Which one of the following is an example of a period cost?

If the total manufacturing costs are greater than the cost of goods manufactured which of the following is correct?

Which one of the following is not considered as material costs?

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

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

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

The major reporting standard for presenting managerial accounting information is

Which of the following is not classified as direct labor?

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

Managerial accounting applies to each of the following types of businesses except

Direct materials costs and indirect materials costs are manufacturing overhead.

Directing includes

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

The supply chain is all the activities associated with providing a product or service.

Both direct materials and indirect materials are

For the work of factory employees to be considered as direct labor the work must be conveniently and

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

The sum of the direct materials costs direct labor costs and beginning work in process is the total manufacturing costs for the year.

Penner Company reported total manufacturing costs of $450000 manufacturing overhead totaling $78000 and direct materials totaling $96000.How much is direct labor cost?

Raw materials inventory shows the cost of completed goods available for sale to customers.

Which one of the following is an example of a period cost?

If the total manufacturing costs are greater than the cost of goods manufactured which of the following is correct?

Which one of the following is not considered as material costs?

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