Question 1

The sales commission incurred based on units of product sold during the month is an example of a product cost.

Accepted Answer

A) True 
 B)False  False

Question 2

Classifying costs by behavior with changes in volume of activity involves:

Accepted Answer

A)  Identifying fixed cost and variable cost. 
B)  Identifying cost of goods sold and operating costs. 
C)  Identifying costs as financial or managerial. 
D)  Identifying costs in a physical manner. 
E)  Identifying both quantitative and qualitative cost factors. 
A)  Identifying fixed cost and variable cost. 
B)  Identifying cost of goods sold and operating costs. 
C)  Identifying costs as financial or managerial. 
D)  Identifying costs in a physical manner. 
E)  Identifying both quantitative and qualitative cost factors. A

Question 3

Planning is the process of setting goals and making plans to achieve them.

Accepted Answer

A) True 
 B)False  True

Question 4

Expenditures incurred in the process of converting raw materials to finished goods, that include direct labor and factory overhead are known as ________.

Accepted Answer

The answer of Expenditures incurred in the process of converting...

Question 5

Calculate the cost of goods manufactured using the following information:

Accepted Answer

A)  $680,500. 
B)  $701,900. 
C)  $687,100. 
D)  $674,600. 
E)  $772,600. 
A)  $680,500. 
B)  $701,900. 
C)  $687,100. 
D)  $674,600. 
E)  $772,600.

Question 6

Expenditures necessary and integral to the manufacture of finished products are ________ costs.

Accepted Answer

The answer of Expenditures necessary and integral to the manufacture...

Question 7

Products that have been completed and are ready to be sold by the manufacturer are called:

Accepted Answer

A)  Finished goods inventory. 
B)  Work in process inventory. 
C)  Raw materials inventory. 
D)  Cost of goods sold. 
E)  Factory supplies. 
A)  Finished goods inventory. 
B)  Work in process inventory. 
C)  Raw materials inventory. 
D)  Cost of goods sold. 
E)  Factory supplies.

Question 8

Feedback provided by the control function allows managers to revise their plans.

Accepted Answer

A) True 
 B)False

Question 9

Product costs are expenditures necessary and integral to finished products.

Accepted Answer

A) True 
 B)False

Question 10

A manufacturer's cost of goods manufactured is the sum of direct materials, direct labor, and factory overhead costs incurred in producing products.

Accepted Answer

A) True 
 B)False

Question 11

Indirect materials are accounted for as factory overhead because they are not clearly identified with specific product units.

Accepted Answer

A) True 
 B)False

Question 12

An internal control system consists of the policies and procedures managers use to do all of the following except:

Accepted Answer

A)  Urge adherence to company policies. 
B)  Promote efficient operations. 
C)  Ensure reliable accounting. 
D)  Determine pricing for products. 
E)  Protect assets. 
A)  Urge adherence to company policies. 
B)  Promote efficient operations. 
C)  Ensure reliable accounting. 
D)  Determine pricing for products. 
E)  Protect assets.

Question 13

Managerial accounting is different from financial accounting in that:

Accepted Answer

A)  Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization. 
B)  Managerial accounting never includes nonmonetary information. 
C)  Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions. 
D)  Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors. 
E)  Managerial accounting is mainly used to set stock prices. 
A)  Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization. 
B)  Managerial accounting never includes nonmonetary information. 
C)  Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions. 
D)  Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors. 
E)  Managerial accounting is mainly used to set stock prices.

Question 14

The Richards Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the Richards Company follows:   The company's cost of raw materials used, cost of goods manufactured and cost of goods sold is:

Accepted Answer

A)  Cost of Materials Used = $90,000 Cost of Goods Manufactured = $293,000
Cost of Goods Sold = $283,000 
B)  Cost of Materials Used = $92,000 Cost of Goods Manufactured = $293,000
Cost of Goods Sold = $303,000 
C)  Cost of Materials Used = $88,000 Cost of Goods Manufactured = $263,000
Cost of Goods Sold = $283,000 
D)  Cost of Materials Used = $88,000 Cost of Goods Manufactured = $293,000
Cost of Goods Sold = $303,000 
E)  Cost of Materials Used = $92,000 Cost of Goods Manufactured = $263,000
Cost of Goods Sold = $293,000 
A)  Cost of Materials Used = $90,000 Cost of Goods Manufactured = $293,000
Cost of Goods Sold = $283,000 
B)  Cost of Materials Used = $92,000 Cost of Goods Manufactured = $293,000
Cost of Goods Sold = $303,000 
C)  Cost of Materials Used = $88,000 Cost of Goods Manufactured = $263,000
Cost of Goods Sold = $283,000 
D)  Cost of Materials Used = $88,000 Cost of Goods Manufactured = $293,000
Cost of Goods Sold = $303,000 
E)  Cost of Materials Used = $92,000 Cost of Goods Manufactured = $263,000
Cost of Goods Sold = $293,000

Question 15

Use the following data to determine the cost of goods manufactured: $$\begin{array} { | l | r | } 
\hline \text { Beginning finished goods inventory } & \$ 10,800 \
\hline \text { Direct labor } & 30,600 \
\hline \text { Beginning work in process inventory } & 7,200 \
\hline \text { General and administrative expenses } & 13,500 \
\hline \text { Direct materials used } & 40,500 \
\hline \text { Ending work in process inventory } & 9,000 \
\hline \text { Indirect labor } & 6,300 \
\text { Ending finished goods inventory } & 9,500 \
\hline \text { Indirect materials } & 13,500 \
\hline \text { Depreciation-factory equipment } & 7,500 \
\hline
\end{array}$$

Accepted Answer

A)  $102,000. 
B)  $110,100. 
C)  $96,600. 
D)  $113,700. 
E)  $100,200. 
A)  $102,000. 
B)  $110,100. 
C)  $96,600. 
D)  $113,700. 
E)  $100,200.

Question 16

Under a just-in-time manufacturing system, large quantities of inventory are accumulated throughout the factory to be certain that components are available each time that they are needed.

Accepted Answer

A) True 
 B)False

Question 17

Control is the process of monitoring planning decisions and evaluating an organization's activities and employees.

Accepted Answer

A) True 
 B)False

Question 18

Current information for the Healey Company follows: $\begin{array} { | l | r | } 
\hline \text { Beginning raw materials inventory } & \$ 15,200 \
\hline\text { Raw material purchases } & 60,000 \
\hline \text { Ending raw materials inventory } & 16,600 \
\hline \text { Beginning work in process inventory } & 22,400 \
\hline \text { Ending work in process inventory } & 28,000 \
\hline \text { Direct labor } & 42,800 \
\hline \text { Total factory overhead } & 30,000 \
\hline
\end{array}$ All raw materials used were traceable to specific units of product. Healey Company's direct materials used for the year is:

Accepted Answer

A)  $58,600. 
B)  $60,000. 
C)  $75,200. 
D)  $76,600. 
E)  $61,400. 
A)  $58,600. 
B)  $60,000. 
C)  $75,200. 
D)  $76,600. 
E)  $61,400.

Question 19

What are the components of the schedule of cost of goods manufactured? Describe each component.

Accepted Answer

The components of the schedule of cost o

Question 20

Indirect labor refers to the cost of the workers whose efforts are directly related to specific units of product.

Accepted Answer

A) True 
 B)False

The sales commission incurred based on units of product sold during the month is an example of a product cost.

Classifying costs by behavior with changes in volume of activity involves:

Planning is the process of setting goals and making plans to achieve them.

Expenditures incurred in the process of converting raw materials to finished goods, that include direct labor and factory overhead are known as ________.

Calculate the cost of goods manufactured using the following information:

Expenditures necessary and integral to the manufacture of finished products are ________ costs.

Products that have been completed and are ready to be sold by the manufacturer are called:

Feedback provided by the control function allows managers to revise their plans.

Product costs are expenditures necessary and integral to finished products.

A manufacturer's cost of goods manufactured is the sum of direct materials, direct labor, and factory overhead costs incurred in producing products.

Indirect materials are accounted for as factory overhead because they are not clearly identified with specific product units.

An internal control system consists of the policies and procedures managers use to do all of the following except:

Managerial accounting is different from financial accounting in that:

The Richards Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the Richards Company follows: The company's cost of raw materials used, cost of goods manufactured and cost of goods sold is:

Under a just-in-time manufacturing system, large quantities of inventory are accumulated throughout the factory to be certain that components are available each time that they are needed.

Control is the process of monitoring planning decisions and evaluating an organization's activities and employees.

What are the components of the schedule of cost of goods manufactured? Describe each component.

Indirect labor refers to the cost of the workers whose efforts are directly related to specific units of product.

Job Order Costing and Analysis

Process Costing and Analysis

Activity Based Costing and Analysis

Cost Behavior Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Analyzing for Business Transactions

Partnership Accounting

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Exam 1: Managerial Accounting Concepts and Principles

The sales commission incurred based on units of product sold during the month is an example of a product cost.

Classifying costs by behavior with changes in volume of activity involves:

Planning is the process of setting goals and making plans to achieve them.

Expenditures incurred in the process of converting raw materials to finished goods, that include direct labor and factory overhead are known as ________.

Calculate the cost of goods manufactured using the following information:

Expenditures necessary and integral to the manufacture of finished products are ________ costs.

Products that have been completed and are ready to be sold by the manufacturer are called:

Feedback provided by the control function allows managers to revise their plans.

Product costs are expenditures necessary and integral to finished products.

A manufacturer's cost of goods manufactured is the sum of direct materials, direct labor, and factory overhead costs incurred in producing products.

Indirect materials are accounted for as factory overhead because they are not clearly identified with specific product units.

An internal control system consists of the policies and procedures managers use to do all of the following except:

Managerial accounting is different from financial accounting in that:

The Richards Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the Richards Company follows: The company's cost of raw materials used, cost of goods manufactured and cost of goods sold is:

Under a just-in-time manufacturing system, large quantities of inventory are accumulated throughout the factory to be certain that components are available each time that they are needed.

Control is the process of monitoring planning decisions and evaluating an organization's activities and employees.

What are the components of the schedule of cost of goods manufactured? Describe each component.

Indirect labor refers to the cost of the workers whose efforts are directly related to specific units of product.

Job Order Costing and Analysis

Process Costing and Analysis

Activity Based Costing and Analysis

Cost Behavior Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Analyzing for Business Transactions

Partnership Accounting

Filters