Question 1

Which of the following is an example of a factory overhead cost?

Accepted Answer

A)  repair and maintenance cost on the administrative building 
B)  factory heating and lighting cost 
C)  insurance premiums on salespersons' automobiles 
D)  president's salary 
A)  repair and maintenance cost on the administrative building 
B)  factory heating and lighting cost 
C)  insurance premiums on salespersons' automobiles 
D)  president's salary

Question 2

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

Accepted Answer

A)  investors 
B)  managers 
C)  shareholders 
D)  customers 
A)  investors 
B)  managers 
C)  shareholders 
D)  customers

Question 3

The cost of goods sold for Michaels Manufacturing in the current year was $233,000.  The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200.  Cost of goods manufactured during the period was

Accepted Answer

A)  $233,000 
B)  $225,600 
C)  $288,800 
D)  $240,400 
A)  $233,000 
B)  $225,600 
C)  $288,800 
D)  $240,400

Question 4

Differentiate between: 
a) direct materials versus indirect materials 
b) direct labor versus indirect labor

Accepted Answer

a) Direct materials must become a physic

Question 5

Which of the following is not true in regards to direct materials for a bakery?

Accepted Answer

A)  Flour and sugar would probably be direct materials. 
B)  Eggs would probably be a direct material. 
C)  Oil to lubricate factory machines would not be a direct material. 
D)  Paper cupcake liners, that become part of the product, must be accounted for as direct materials. 
A)  Flour and sugar would probably be direct materials. 
B)  Eggs would probably be a direct material. 
C)  Oil to lubricate factory machines would not be a direct material. 
D)  Paper cupcake liners, that become part of the product, must be accounted for as direct materials.

Question 6

Period costs are operating costs that are expensed in the period in which the goods are sold.

Accepted Answer

A) True 
 B)False

Question 7

Differentiate between a line department and a staff department.

Accepted Answer

A line department is directly involved i

Question 8

Conversion cost is the combination of direct materials cost and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 9

Magnus Industries has the following data:   
Calculate the cost of raw materials used.

Accepted Answer

Raw Materials Used =

Question 10

Materials must have which two qualities in order to be classified as direct materials?

Accepted Answer

A)  They must be classified as both prime costs and conversion costs. 
B)  They must be introduced into the process in both work-in-process inventories and finished goods inventories. 
C)  They must be an integral part of the finished product, but can be an insignificant portion of the total product cost. 
D)  They must be an integral part of the finished product and be a significant portion of the total product cost. 
A)  They must be classified as both prime costs and conversion costs. 
B)  They must be introduced into the process in both work-in-process inventories and finished goods inventories. 
C)  They must be an integral part of the finished product, but can be an insignificant portion of the total product cost. 
D)  They must be an integral part of the finished product and be a significant portion of the total product cost.

Question 11

Which of the following accounts will be found on the income statement?

Accepted Answer

A)  Inventory 
B)  Work in Process 
C)  Finished Goods 
D)  Cost of Goods Sold 
A)  Inventory 
B)  Work in Process 
C)  Finished Goods 
D)  Cost of Goods Sold

Question 12

Prime costs are the combination of direct materials and direct labor costs.

Accepted Answer

A) True 
 B)False

Question 13

The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year.   
Required:   (Present all calculations in thousands of dollars.)  
(a) What was the cost of the direct materials used in production during the year? 
(b) What was the cost of goods manufactured for the year? 
(c) What was the cost of goods sold for the year? 
(d) What was the net income for the year? 
Present all calculations in thousands of dollars.

Accepted Answer

a) @#IMG-DLM& 
(b) The cost of goods manufactured

Question 14

Managers do not need to consider the social and environmental settings in which a business operates.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Match between columns
                        Premises: Nails and screws used in the production of the bar stools
Lubricants used on the bar stool manufacturing equipment
The production labor wages for the bar stool assemblers
The factory supervisor's salary for the bar stool factory
Manufacturing costs for wood and steel used in the bar stools

Accepted Answer

The Answer of Direct and Indirect is...

Question 17

Managers used managerial information for all of the following except

Accepted Answer

A)  to evaluate the company's stock performance 
B)  to analyze the performance of a company's operations 
C)  to support long-term planning decisions 
D)  to determine the cost of manufacturing a product 
A)  to evaluate the company's stock performance 
B)  to analyze the performance of a company's operations 
C)  to support long-term planning decisions 
D)  to determine the cost of manufacturing a product

Question 18

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as

Accepted Answer

A)  factory overhead cost 
B)  direct labor cost 
C)  miscellaneous costs 
D)  direct materials cost 
A)  factory overhead cost 
B)  direct labor cost 
C)  miscellaneous costs 
D)  direct materials cost

Question 19

Managerial accounting information includes both historical and estimated data.

Accepted Answer

A) True 
 B)False

Question 20

Direct labor costs are included in the conversion costs of a product.

Accepted Answer

A) True 
 B)False

Which of the following is an example of a factory overhead cost?

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Cost of goods manufactured during the period was

Differentiate between: a) direct materials versus indirect materials b) direct labor versus indirect labor

Which of the following is not true in regards to direct materials for a bakery?

Period costs are operating costs that are expensed in the period in which the goods are sold.

Differentiate between a line department and a staff department.

Conversion cost is the combination of direct materials cost and factory overhead cost.

Magnus Industries has the following data: Calculate the cost of raw materials used.

Materials must have which two qualities in order to be classified as direct materials?

Which of the following accounts will be found on the income statement?

Prime costs are the combination of direct materials and direct labor costs.

Managers do not need to consider the social and environmental settings in which a business operates.

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

Managers used managerial information for all of the following except

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as

Managerial accounting information includes both historical and estimated data.

Direct labor costs are included in the conversion costs of a product.

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

Which of the following is an example of a factory overhead cost?

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Cost of goods manufactured during the period was

Differentiate between: a) direct materials versus indirect materials b) direct labor versus indirect labor

Which of the following is not true in regards to direct materials for a bakery?

Period costs are operating costs that are expensed in the period in which the goods are sold.

Differentiate between a line department and a staff department.

Conversion cost is the combination of direct materials cost and factory overhead cost.

Magnus Industries has the following data: Calculate the cost of raw materials used.

Materials must have which two qualities in order to be classified as direct materials?

Which of the following accounts will be found on the income statement?

Prime costs are the combination of direct materials and direct labor costs.

Managers do not need to consider the social and environmental settings in which a business operates.

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

Managers used managerial information for all of the following except

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as

Managerial accounting information includes both historical and estimated data.

Direct labor costs are included in the conversion costs of a product.

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