Question 1

A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities.

Accepted Answer

A) True 
 B)False

Question 2

Prime costs are the combination of direct labor costs and factory overhead costs.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is most associated with financial accounting?

Accepted Answer

A)  can have both objective and subjective information 
B)  can be prepared periodically, or as needed 
C)  prepared in accordance with GAAP 
D)  can be prepared for the entity or segment 
A)  can have both objective and subjective information 
B)  can be prepared periodically, or as needed 
C)  prepared in accordance with GAAP 
D)  can be prepared for the entity or segment

Question 4

Smith Company reports the following information:  
Factory overhead is 75% of the cost of direct labor.  Work in process inventory on December 31 is

Accepted Answer

A)  $16,250 
B)  $8,500 
C)  $18,750 
D)  $13,500 
A)  $16,250 
B)  $8,500 
C)  $18,750 
D)  $13,500

Question 5

Controlling deals with choosing goals and deciding how to achieve them.

Accepted Answer

A) True 
 B)False

Question 6

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as

Accepted Answer

A)  factory overhead cost 
B)  miscellaneous expense 
C)  product costs 
D)  period cost 
A)  factory overhead cost 
B)  miscellaneous expense 
C)  product costs 
D)  period cost

Question 7

Which of the following is part of factory overhead cost?

Accepted Answer

A)  sales commissions 
B)  depreciation of factory equipment and machines 
C)  depreciation of sales person's vehicle 
D)  direct materials used 
A)  sales commissions 
B)  depreciation of factory equipment and machines 
C)  depreciation of sales person's vehicle 
D)  direct materials used

Question 8

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 9

A performance report that identifies the amount of employee downtime is a financial accounting report.

Accepted Answer

A) True 
 B)False

Question 10

Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the current year.  Indirect labor amounted to $2,700 while indirect materials used totaled $1,600.  Other operating costs pertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of $7,900, and property taxes of $2,600.  There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance. 
Prepare a statement of cost of goods manufactured.

Accepted Answer

The answer of Allen Company used $71,000 of direct materials...

Question 11

A company manufactured 50,000 units of a product at a cost of $450,000.  It sold 45,000 units at $15 each.  The gross profit is

Accepted Answer

A)  $750,000 
B)  $240,000 
C)  $600,000 
D)  $270,000 
A)  $750,000 
B)  $240,000 
C)  $600,000 
D)  $270,000

Question 12

All of the following employees hold line positions in Facebook except

Accepted Answer

A)  vice president of production 
B)  vice president of finance 
C)  manager of the web design 
D)  vice president of sales 
A)  vice president of production 
B)  vice president of finance 
C)  manager of the web design 
D)  vice president of sales

Question 13

Compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,900; and selling expenses, $45,290.

Accepted Answer

A)  $543,800 
B)  $187,900 
C)  $731,700 
D)  $384,200 
A)  $543,800 
B)  $187,900 
C)  $731,700 
D)  $384,200

Question 14

Conversion costs consist of product costs and period costs.

Accepted Answer

A) True 
 B)False

Question 15

Managerial accounting reports must be prepared according to generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 16

The following are all product costs except

Accepted Answer

A)  direct materials 
B)  sales and administrative expenses 
C)  direct labor 
D)  factory overhead 
A)  direct materials 
B)  sales and administrative expenses 
C)  direct labor 
D)  factory overhead

Question 17

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

Accepted Answer

A)  period costs and expensed when incurred 
B)  product costs and expensed when the goods are sold 
C)  product costs and expensed when incurred 
D)  period costs and expensed when the goods are sold 
A)  period costs and expensed when incurred 
B)  product costs and expensed when the goods are sold 
C)  product costs and expensed when incurred 
D)  period costs and expensed when the goods are sold

Question 18

Sustainability information can provide important feedback to guide a company's strategic and operational decision making.

Accepted Answer

A) True 
 B)False

Question 19

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except

Accepted Answer

A)  provide objective measures of past operations and subjective estimates about future decisions 
B)  be prepared in accordance with generally accepted accounting principles 
C)  be provided at any time management needs information 
D)  be prepared to report information for any unit of the business to support decision making 
A)  provide objective measures of past operations and subjective estimates about future decisions 
B)  be prepared in accordance with generally accepted accounting principles 
C)  be provided at any time management needs information 
D)  be prepared to report information for any unit of the business to support decision making

Question 20

SASB's standards are required and provide sustainability information in financial statements.

Accepted Answer

A) True 
 B)False

A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities.

Prime costs are the combination of direct labor costs and factory overhead costs.

Which of the following is most associated with financial accounting?

Smith Company reports the following information: Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31 is

Controlling deals with choosing goals and deciding how to achieve them.

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as

Which of the following is part of factory overhead cost?

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

A performance report that identifies the amount of employee downtime is a financial accounting report.

A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is

All of the following employees hold line positions in Facebook except

Compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,900; and selling expenses, $45,290.

Conversion costs consist of product costs and period costs.

Managerial accounting reports must be prepared according to generally accepted accounting principles.

The following are all product costs except

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

Sustainability information can provide important feedback to guide a company's strategic and operational decision making.

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except

SASB's standards are required and provide sustainability information in financial statements.

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

A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities.

Prime costs are the combination of direct labor costs and factory overhead costs.

Which of the following is most associated with financial accounting?

Smith Company reports the following information: Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31 is

Controlling deals with choosing goals and deciding how to achieve them.

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as

Which of the following is part of factory overhead cost?

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

A performance report that identifies the amount of employee downtime is a financial accounting report.

A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is

All of the following employees hold line positions in Facebook except

Compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,900; and selling expenses, $45,290.

Conversion costs consist of product costs and period costs.

Managerial accounting reports must be prepared according to generally accepted accounting principles.

The following are all product costs except

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

Sustainability information can provide important feedback to guide a company's strategic and operational decision making.

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except

SASB's standards are required and provide sustainability information in financial statements.

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