Question 1

Which of the following is an example of direct materials cost for an automobile manufacturer?

Accepted Answer

A)  cost of oil lubricants for factory machinery 
B)  cost of wages of assembly worker 
C)  salary of production supervisor 
D)  cost of interior upholstery 
A)  cost of oil lubricants for factory machinery 
B)  cost of wages of assembly worker 
C)  salary of production supervisor 
D)  cost of interior upholstery

Question 2

Match between columns
                        Premises: Delivery costs to take the bicycles to stores
Accountant salaries
Selling costs for the period
Tires for the bicycles
Electricity costs to run the factory

Accepted Answer

The Answer of Period and Product is...

Question 3

A plant manager's salary is

Accepted Answer

A)  a direct cost and an indirect cost 
B)  a direct cost 
C)  an indirect cost 
D)  a period cost 
A)  a direct cost and an indirect cost 
B)  a direct cost 
C)  an indirect cost 
D)  a period cost

Question 4

Cost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost.

Accepted Answer

A) True 
 B)False

Question 5

The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following items would not be classified as part of factory overhead?

Accepted Answer

A)  direct labor used 
B)  amortization of manufacturing patents 
C)  production supervisors' salaries 
D)  factory supplies used 
A)  direct labor used 
B)  amortization of manufacturing patents 
C)  production supervisors' salaries 
D)  factory supplies used

Question 7

Direct costs can be specifically traced to a cost object.

Accepted Answer

A) True 
 B)False

Question 8

Keeton Company had the following data: 
Cost of materials used    $ 60,000 
Direct labor costs              58,000 
Factory overhead              33,000 
Work in process, beg.       29,000 
Work in process, end.       18,000 
Finished goods, beg.          32,000 
Finished goods, end.         18,000 
Calculate the cost of goods sold.

Accepted Answer

Cost of goods sold = $60,000 +

Question 9

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is most associated with managerial accounting?

Accepted Answer

A)  must follow GAAP 
B)  may rely on estimates and forecasts 
C)  is prepared for users outside the organization 
D)  always reports on the entire entity 
A)  must follow GAAP 
B)  may rely on estimates and forecasts 
C)  is prepared for users outside the organization 
D)  always reports on the entire entity

Question 11

Given the following data:   What is the amount of raw materials used?

Accepted Answer

A)  $5,000 
B)  $55,000 
C)  $75,000 
D)  $30,000 
A)  $5,000 
B)  $55,000 
C)  $75,000 
D)  $30,000

Question 12

What is decision making? Who is responsible for decision making in a managerial situation?

Accepted Answer

Inherent in each management process (pla

Question 13

Rent expense on a factory building would be treated as a(n)

Accepted Answer

A)  period cost 
B)  product cost 
C)  indirect cost 
D)  direct material cost 
A)  period cost 
B)  product cost 
C)  indirect cost 
D)  direct material cost

Question 14

Eco-efficiency measures are a form of managerial accounting information that helps managers evaluate the savings generated by using fewer natural resources in a company's operations.

Accepted Answer

A) True 
 B)False

Question 15

Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a lawn mower manufacturer. 
 
1. _____ Wheels 
2. _____ Depreciation on worker's tools 
3. _____ Wages of assemblers 
4. _____ Grease for wheel axles

Accepted Answer

1. Direct material

Question 16

Manufacturers use machinery and labor to convert direct materials into finished products.

Accepted Answer

A) True 
 B)False

Question 17

The payment of dividends is an example of a cost.

Accepted Answer

A) True 
 B)False

Question 18

Period costs can be found on both the balance sheet and the income statement.

Accepted Answer

A) True 
 B)False

Question 19

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 material, 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 material, and factory overhead 
D)  appear on both the income statement and balance sheet

Question 20

Work in process inventory increased by $20,000 during the current year.  Cost of goods manufactured was $180,000.  Total manufacturing costs incurred are

Accepted Answer

A)  $198,000 
B)  $160,000 
C)  $189,000 
D)  $200,000 
A)  $198,000 
B)  $160,000 
C)  $189,000 
D)  $200,000

Which of the following is an example of direct materials cost for an automobile manufacturer?

A plant manager's salary is

Cost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost.

The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

Which of the following items would not be classified as part of factory overhead?

Direct costs can be specifically traced to a cost object.

Keeton Company had the following data: Cost of materials used $ 60,000 Direct labor costs 58,000 Factory overhead 33,000 Work in process, beg. 29,000 Work in process, end. 18,000 Finished goods, beg. 32,000 Finished goods, end. 18,000 Calculate the cost of goods sold.

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

Which of the following is most associated with managerial accounting?

Given the following data: What is the amount of raw materials used?

What is decision making? Who is responsible for decision making in a managerial situation?

Rent expense on a factory building would be treated as a(n)

Eco-efficiency measures are a form of managerial accounting information that helps managers evaluate the savings generated by using fewer natural resources in a company's operations.

Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a lawn mower manufacturer. 1. ___ Wheels 2. _ Depreciation on worker's tools 3. _ Wages of assemblers 4. ___ Grease for wheel axles

Manufacturers use machinery and labor to convert direct materials into finished products.

The payment of dividends is an example of a cost.

Period costs can be found on both the balance sheet and the income statement.

Product costs

Work in process inventory increased by $20,000 during the current year. Cost of goods manufactured was $180,000. Total manufacturing costs incurred are

Job Order Costing

Process Cost Systems

Activity Based Costing

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

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 1: Introduction to Managerial Accounting

Which of the following is an example of direct materials cost for an automobile manufacturer?

A plant manager's salary is

Cost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost.

The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

Which of the following items would not be classified as part of factory overhead?

Direct costs can be specifically traced to a cost object.

Keeton Company had the following data: Cost of materials used $ 60,000 Direct labor costs 58,000 Factory overhead 33,000 Work in process, beg. 29,000 Work in process, end. 18,000 Finished goods, beg. 32,000 Finished goods, end. 18,000 Calculate the cost of goods sold.

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

Which of the following is most associated with managerial accounting?

Given the following data: What is the amount of raw materials used?

What is decision making? Who is responsible for decision making in a managerial situation?

Rent expense on a factory building would be treated as a(n)

Eco-efficiency measures are a form of managerial accounting information that helps managers evaluate the savings generated by using fewer natural resources in a company's operations.

Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a lawn mower manufacturer. 1. _____ Wheels 2. _____ Depreciation on worker's tools 3. _____ Wages of assemblers 4. _____ Grease for wheel axles

Manufacturers use machinery and labor to convert direct materials into finished products.

The payment of dividends is an example of a cost.

Period costs can be found on both the balance sheet and the income statement.

Product costs

Work in process inventory increased by $20,000 during the current year. Cost of goods manufactured was $180,000. Total manufacturing costs incurred are

Job Order Costing

Process Cost Systems

Activity Based Costing

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

Statement of Cash Flows

Financial Statement Analysis

Filters

Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a lawn mower manufacturer. 1. ___ Wheels 2. _ Depreciation on worker's tools 3. _ Wages of assemblers 4. ___ Grease for wheel axles