Question 1

Marshall Corporation incurred costs for materials and labor needed to manufacture its products. These costs are an example of:

Accepted Answer

A)  Period costs. 
B)  Product costs. 
C)  General costs. 
D)  Balance sheet costs. 
E)  Capitalized costs. 
A)  Period costs. 
B)  Product costs. 
C)  General costs. 
D)  Balance sheet costs. 
E)  Capitalized costs.

Question 2

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

Accepted Answer

The answer of ________ is the process of monitoring planning...

Question 3

Cost concepts such as variable, fixed, mixed, direct, and indirect apply only to manufacturers and not to service companies.

Accepted Answer

A) True 
 B)False

Question 4

Flexibility of practice when applied to managerial accounting means that:

Accepted Answer

A)  The information must be presented in electronic format so that it is easily changed. 
B)  Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for. 
C)  The managerial accountants need to be on call twenty-four hours a day. 
D)  Managerial accounting system differ across companies depending on the nature of the business and the arrangement of its internal operations. 
E)  Managers must be flexible with information provided in varying forms and using inconsistent measures. 
A)  The information must be presented in electronic format so that it is easily changed. 
B)  Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for. 
C)  The managerial accountants need to be on call twenty-four hours a day. 
D)  Managerial accounting system differ across companies depending on the nature of the business and the arrangement of its internal operations. 
E)  Managers must be flexible with information provided in varying forms and using inconsistent measures.

Question 5

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured was $147,000; and the December 31 finished goods inventory was $77,000. What is the cost of goods sold for that year?

Accepted Answer

The answer of A manufacturing company's finished goods inventory on...

Question 6

Duncan Crafts manufactures specialty key chains for tourist attractions. On January 1, the firm had 300 souvenir attraction disks used in the production of the chains that cost $3 each; and 600 completed key chains that cost $6 each. During the year Duncan Crafts purchased 1,500 souvenir disks costing $3 each and produced 1,100 key chains. Compute the total cost of raw materials inventory at December 31.

Accepted Answer

The answer of Duncan Crafts manufactures specialty key chains for...

Question 7

Which of the following represents the correct formula for calculating cost of goods manufactured?

Accepted Answer

A)  Direct materials used + direct labor + factory overhead + beginning work in process + ending work in process. 
B)  Direct materials used + direct labor + factory overhead + beginning work in process - ending work in process. 
C)  Direct materials used + direct labor + factory overhead - beginning work in process + ending work in process. 
D)  Direct materials used + direct labor + factory overhead - beginning work in process - ending work in process. 
E)  Direct materials used + direct labor - factory overhead + beginning work in process - ending work in process. 
A)  Direct materials used + direct labor + factory overhead + beginning work in process + ending work in process. 
B)  Direct materials used + direct labor + factory overhead + beginning work in process - ending work in process. 
C)  Direct materials used + direct labor + factory overhead - beginning work in process + ending work in process. 
D)  Direct materials used + direct labor + factory overhead - beginning work in process - ending work in process. 
E)  Direct materials used + direct labor - factory overhead + beginning work in process - ending work in process.

Question 8

Factory overhead includes selling and administrative expenses because they are indirect costs of a product.

Accepted Answer

A) True 
 B)False

Question 9

The salary paid to the assembly line supervisor would normally be classified as:

Accepted Answer

A)  Direct labor. 
B)  Indirect labor. 
C)  A period cost. 
D)  A general cost. 
E)  An assembly cost. 
A)  Direct labor. 
B)  Indirect labor. 
C)  A period cost. 
D)  A general cost. 
E)  An assembly cost.

Question 10

A manufacturing company has a beginning finished goods inventory of $28,300, cost of goods manufactured of $58,500, and an ending finished goods inventory of $27,600. The cost of goods sold for this company is:

Accepted Answer

A)  $114,400. 
B)  $57,800. 
C)  $2,600. 
D)  $86,100. 
E)  $59,200. 
A)  $114,400. 
B)  $57,800. 
C)  $2,600. 
D)  $86,100. 
E)  $59,200.

Question 11

A manufacturer's total cost of making and finishing products in the period is called:

Accepted Answer

A)  Ending finished goods inventory. 
B)  Total manufacturing costs. 
C)  Ending work in process inventory. 
D)  Cost of goods manufactured. 
E)  Cost of goods sold. 
A)  Ending finished goods inventory. 
B)  Total manufacturing costs. 
C)  Ending work in process inventory. 
D)  Cost of goods manufactured. 
E)  Cost of goods sold.

Question 12

Define fraud and give at least two examples of employee fraud.

Accepted Answer

Fraud involves the use of one's job for

Question 13

Last year, Gordon Company sold 20,000 units of its only product. If sales decrease by 20% in the current year, how will unit variable cost and total fixed cost be affected?

Accepted Answer

A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
E)  Choice E 
A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
E)  Choice E

Question 14

The following cost items relate to the Henning Company. Classify each cost as a variable cost or a fixed cost by placing an X in the appropriate column. Each cost should be evaluated in terms of the volume of units of finished products produced. Also indicate with an X for each item if it is a product cost or a period cost.

Accepted Answer

The answer of The following cost items relate to the...

Question 15

A company's prime costs total $4,500,000 and its conversion costs total $5,500,000. If direct materials are $2,000,000, calculate the overhead costs:

Accepted Answer

A)  $2,500,000. 
B)  $3,500,000. 
C)  $2,000,000. 
D)  $1,000,000. 
E)  $3,000,000. 
A)  $2,500,000. 
B)  $3,500,000. 
C)  $2,000,000. 
D)  $1,000,000. 
E)  $3,000,000.

Question 16

A direct cost is a cost that is:

Accepted Answer

A)  Identifiable as controllable. 
B)  Traceable to the company as a whole. 
C)  Does not change with the volume of activity. 
D)  Traceable to a single cost object. 
E)  Traceable to multiple cost objects. 
A)  Identifiable as controllable. 
B)  Traceable to the company as a whole. 
C)  Does not change with the volume of activity. 
D)  Traceable to a single cost object. 
E)  Traceable to multiple cost objects.

Question 17

The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not part of the sales activity in the flow of manufacturing activities?

Accepted Answer

A)  Beginning Finished Goods Inventory. 
B)  Cost of Goods Manufactured. 
C)  Total Finished Goods available for sale. 
D)  Ending Work in Process Inventory. 
E)  Cost of Goods Sold. 
A)  Beginning Finished Goods Inventory. 
B)  Cost of Goods Manufactured. 
C)  Total Finished Goods available for sale. 
D)  Ending Work in Process Inventory. 
E)  Cost of Goods Sold.

Question 19

Which of the following should not be included in direct materials costs?

Accepted Answer

A)  Invoice costs of direct materials. 
B)  Delivery charges on shipments to customers. 
C)  Materials storage costs. 
D)  Materials handling costs. 
E)  Incoming freight charges. 
A)  Invoice costs of direct materials. 
B)  Delivery charges on shipments to customers. 
C)  Materials storage costs. 
D)  Materials handling costs. 
E)  Incoming freight charges.

Question 20

A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:

Accepted Answer

A)  Fixed versus variable. 
B)  Direct versus indirect. 
C)  Financial versus managerial. 
D)  Service versus manufacturing. 
E)  Product versus period. 
A)  Fixed versus variable. 
B)  Direct versus indirect. 
C)  Financial versus managerial. 
D)  Service versus manufacturing. 
E)  Product versus period.

Marshall Corporation incurred costs for materials and labor needed to manufacture its products. These costs are an example of:

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

Cost concepts such as variable, fixed, mixed, direct, and indirect apply only to manufacturers and not to service companies.

Flexibility of practice when applied to managerial accounting means that:

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured was $147,000; and the December 31 finished goods inventory was $77,000. What is the cost of goods sold for that year?

Which of the following represents the correct formula for calculating cost of goods manufactured?

Factory overhead includes selling and administrative expenses because they are indirect costs of a product.

The salary paid to the assembly line supervisor would normally be classified as:

A manufacturing company has a beginning finished goods inventory of $28,300, cost of goods manufactured of $58,500, and an ending finished goods inventory of $27,600. The cost of goods sold for this company is:

A manufacturer's total cost of making and finishing products in the period is called:

Define fraud and give at least two examples of employee fraud.

Last year, Gordon Company sold 20,000 units of its only product. If sales decrease by 20% in the current year, how will unit variable cost and total fixed cost be affected?

A company's prime costs total $4,500,000 and its conversion costs total $5,500,000. If direct materials are $2,000,000, calculate the overhead costs:

A direct cost is a cost that is:

The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.

Which of the following is not part of the sales activity in the flow of manufacturing activities?

Which of the following should not be included in direct materials costs?

A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:

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

Marshall Corporation incurred costs for materials and labor needed to manufacture its products. These costs are an example of:

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

Cost concepts such as variable, fixed, mixed, direct, and indirect apply only to manufacturers and not to service companies.

Flexibility of practice when applied to managerial accounting means that:

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured was $147,000; and the December 31 finished goods inventory was $77,000. What is the cost of goods sold for that year?

Which of the following represents the correct formula for calculating cost of goods manufactured?

Factory overhead includes selling and administrative expenses because they are indirect costs of a product.

The salary paid to the assembly line supervisor would normally be classified as:

A manufacturing company has a beginning finished goods inventory of $28,300, cost of goods manufactured of $58,500, and an ending finished goods inventory of $27,600. The cost of goods sold for this company is:

A manufacturer's total cost of making and finishing products in the period is called:

Define fraud and give at least two examples of employee fraud.

Last year, Gordon Company sold 20,000 units of its only product. If sales decrease by 20% in the current year, how will unit variable cost and total fixed cost be affected?

A company's prime costs total $4,500,000 and its conversion costs total $5,500,000. If direct materials are $2,000,000, calculate the overhead costs:

A direct cost is a cost that is:

The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.

Which of the following is not part of the sales activity in the flow of manufacturing activities?

Which of the following should not be included in direct materials costs?

A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:

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