Question 1

Classify the following costs as direct, indirect, or neither:

Accepted Answer

a) Indirect 
b) Indirect 
c) I

Question 2

Which of the following are reported on the income statement as part of cost of goods?

Accepted Answer

A)  administrative expenses 
B)  period costs 
C)  cost of goods manufactured 
D)  operating expenses 
A)  administrative expenses 
B)  period costs 
C)  cost of goods manufactured 
D)  operating expenses

Question 3

What term is used to describe the process of developing the organization's objectives and translating those into courses of action?

Accepted Answer

A)  supervising 
B)  planning 
C)  improving 
D)  decision making 
A)  supervising 
B)  planning 
C)  improving 
D)  decision making

Question 4

Jensen Company reports the following:   Jensen Company's period costs are

Accepted Answer

A)  $345,000 
B)  $250,000 
C)  $400,000 
D)  $175,000 
A)  $345,000 
B)  $250,000 
C)  $400,000 
D)  $175,000

Question 5

Jensen Company reports the following:  
Jensen Company's product costs are

Accepted Answer

A)  $995,000 
B)  $920,000 
C)  $825,000 
D)  $770,000 
A)  $995,000 
B)  $920,000 
C)  $825,000 
D)  $770,000

Question 6

Factory overhead includes

Accepted Answer

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

Question 7

Insurance expense incurred on a factory building would be treated as a

Accepted Answer

A)  direct cost 
B)  period cost 
C)  product cost 
D)  selling cost 
A)  direct cost 
B)  period cost 
C)  product cost 
D)  selling cost

Question 8

A cost object indicates how costs are related or identified.

Accepted Answer

A) True 
 B)False

Question 9

Indirect labor would be included in factory overhead.

Accepted Answer

A) True 
 B)False

Question 10

A cost can be a payment of cash for the purpose of generating revenues.

Accepted Answer

A) True 
 B)False

Question 11

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

Accepted Answer

A) True 
 B)False

Question 12

An example of a sustainable business practice in energy is the use of wind turbines.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following are basic phases of the management process?

Accepted Answer

A)  supervising and directing 
B)  decision making and supervising 
C)  organizing and directing 
D)  planning and controlling 
A)  supervising and directing 
B)  decision making and supervising 
C)  organizing and directing 
D)  planning and controlling

Question 14

Which of the following manufacturing costs is an indirect cost of producing a product?

Accepted Answer

A)  oil lubricants used for factory machinery 
B)  commissions for sales personnel 
C)  hourly wages of an assembly worker 
D)  memory chips for a microcomputer manufacturer 
A)  oil lubricants used for factory machinery 
B)  commissions for sales personnel 
C)  hourly wages of an assembly worker 
D)  memory chips for a microcomputer manufacturer

Question 15

In most business organizations, the chief management accountant is called the

Accepted Answer

A)  chief accounting officer 
B)  controller 
C)  chairman of the board 
D)  chief executive officer 
A)  chief accounting officer 
B)  controller 
C)  chairman of the board 
D)  chief executive officer

Question 16

Beginning work in process is equal to

Accepted Answer

A)  cost of goods manufactured plus ending work in process minus manufacturing costs incurred during the current period 
B)  cost of goods manufactured minus ending work in process plus manufacturing costs incurred during the current period 
C)  ending work in process plus manufacturing costs incurred during the current period 
D)  manufacturing costs incurred during the current period minus ending work in process 
A)  cost of goods manufactured plus ending work in process minus manufacturing costs incurred during the current period 
B)  cost of goods manufactured minus ending work in process plus manufacturing costs incurred during the current period 
C)  ending work in process plus manufacturing costs incurred during the current period 
D)  manufacturing costs incurred during the current period minus ending work in process

Question 17

Identify the following costs as (a) prime cost, (b) conversion cost, or (c) both for a cake factory. 
1. Frosting 
2. Wages of the baker 
3. Sprinkles for the topping (considered an indirect material) 
4. Depreciation on oven

Accepted Answer

1. a 
2. c

Question 18

Labor costs that are directly traceable to the product are part of factory overhead.

Accepted Answer

A) True 
 B)False

Question 19

Costs on the income statement for both a merchandiser and a manufacturer would be

Accepted Answer

A)  operating expenses 
B)  direct materials 
C)  direct labor incurred 
D)  cost of goods manufactured 
A)  operating expenses 
B)  direct materials 
C)  direct labor incurred 
D)  cost of goods manufactured

Question 20

Sienna Company has the following information for January:   
Calculate the cost of goods manufactured.

Accepted Answer

Beginning

Classify the following costs as direct, indirect, or neither:

Which of the following are reported on the income statement as part of cost of goods?

What term is used to describe the process of developing the organization's objectives and translating those into courses of action?

Jensen Company reports the following: Jensen Company's period costs are

Jensen Company reports the following: Jensen Company's product costs are

Factory overhead includes

Insurance expense incurred on a factory building would be treated as a

A cost object indicates how costs are related or identified.

Indirect labor would be included in factory overhead.

A cost can be a payment of cash for the purpose of generating revenues.

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

An example of a sustainable business practice in energy is the use of wind turbines.

Which of the following are basic phases of the management process?

Which of the following manufacturing costs is an indirect cost of producing a product?

In most business organizations, the chief management accountant is called the

Beginning work in process is equal to

Identify the following costs as (a) prime cost, (b) conversion cost, or (c) both for a cake factory. 1. Frosting 2. Wages of the baker 3. Sprinkles for the topping (considered an indirect material) 4. Depreciation on oven

Labor costs that are directly traceable to the product are part of factory overhead.

Costs on the income statement for both a merchandiser and a manufacturer would be

Sienna Company has the following information for January: Calculate the cost of goods manufactured.

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

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Exam 1: Introduction to Managerial Accounting

Classify the following costs as direct, indirect, or neither:

Which of the following are reported on the income statement as part of cost of goods?

What term is used to describe the process of developing the organization's objectives and translating those into courses of action?

Jensen Company reports the following: Jensen Company's period costs are

Jensen Company reports the following: Jensen Company's product costs are

Factory overhead includes

Insurance expense incurred on a factory building would be treated as a

A cost object indicates how costs are related or identified.

Indirect labor would be included in factory overhead.

A cost can be a payment of cash for the purpose of generating revenues.

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

An example of a sustainable business practice in energy is the use of wind turbines.

Which of the following are basic phases of the management process?

Which of the following manufacturing costs is an indirect cost of producing a product?

In most business organizations, the chief management accountant is called the

Beginning work in process is equal to

Identify the following costs as (a) prime cost, (b) conversion cost, or (c) both for a cake factory. 1. Frosting 2. Wages of the baker 3. Sprinkles for the topping (considered an indirect material) 4. Depreciation on oven

Labor costs that are directly traceable to the product are part of factory overhead.

Costs on the income statement for both a merchandiser and a manufacturer would be

Sienna Company has the following information for January: Calculate the cost of goods manufactured.

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