Question 1

The concept of total quality management focuses on continuous improvement.

Accepted Answer

A) True 
 B)False

Question 2

Factory overhead costs may include all of the following except:

Accepted Answer

A)  Indirect labor costs. 
B)  Indirect material costs. 
C)  Selling costs. 
D)  Assembly supplies. 
E)  Factory rent. 
A)  Indirect labor costs. 
B)  Indirect material costs. 
C)  Selling costs. 
D)  Assembly supplies. 
E)  Factory rent.

Question 3

Policies and procedures used by management to monitor and control business activities are known as ________.

Accepted Answer

The answer of Policies and procedures used by management to...

Question 4

Information for the Deuce Manufacturing Company follows. Compute the cost of goods manufactured for this company.
 $$\begin{array} { | l | r | } 
\hline \text { Beginning raw materials inventory } & \$ 53,200 \
\hline \text { Beginning work in process, inventory } & 78,400 \
\hline \text { Ending raw materials inventory } & 58,100 \
\hline \text { Ending work in process, inventory } & 98,000 \
\hline \text { Direct labor } & 149,800 \
\hline \text { Total factory overhead } & 105,000 \
\hline \text { Raw material purchases } & 210,000 \
\hline
\end{array}$$

Accepted Answer

The answer of Information for the Deuce Manufacturing Company follows....

Question 5

One of the usual differences between financial and managerial accounting is the timeliness of the information reported.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is correct concerning the Days' sales in raw materials inventory?

Accepted Answer

A)  A measure of how long it takes raw materials to be used in production. 
B)  The ratio is not useful for a manufacturer. 
C)  Reveals how many times a company turns over its raw materials inventory in a period. 
D)  Most companies generally prefer a higher number of days' sales in raw materials inventory. 
E)  Is calculated by taking the Raw materials used/Average raw materials inventory. 
A)  A measure of how long it takes raw materials to be used in production. 
B)  The ratio is not useful for a manufacturer. 
C)  Reveals how many times a company turns over its raw materials inventory in a period. 
D)  Most companies generally prefer a higher number of days' sales in raw materials inventory. 
E)  Is calculated by taking the Raw materials used/Average raw materials inventory.

Question 7

Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000. Its prime costs total:

Accepted Answer

A)  $10,000,000. 
B)  $8,000,000. 
C)  $12,000,000. 
D)  $5,000,000. 
E)  $15,000,000. 
A)  $10,000,000. 
B)  $8,000,000. 
C)  $12,000,000. 
D)  $5,000,000. 
E)  $15,000,000.

Question 8

Marv's Furniture and Fixtures produces seats for movie theaters. Listed below are selected cost items for the seat production. Classify each cost as either fixed or variable, and either a product or a period cost by placing an x in the appropriate boxes.

Accepted Answer

The answer of Marv's Furniture and Fixtures produces seats for...

Question 9

Product costs can be classified as one of three types: direct materials, direct labor, or overhead.

Accepted Answer

A) True 
 B)False

Question 10

The Langston Company manufactures coats. Costs for February were as follows:
 $$\begin{array} { | l | r | } 
\hline \text { Direct materials } & \$ 19,650 \
\hline \text { Direct labor } & 15,21 \
\hline \text { Factory insurance } & 950 \
\hline \text { Sales commissions } & 4,700 \
\hline \text { Corporate executive salaries } & 5,500 \
\hline \text { Factory supervisor salary } & 3,500 \
\hline \text { Indirect materials } & 1,920\
\hline  
\end{array}$$ Required: Calculate the total manufacturing cost for February.

Accepted Answer

\[\begin{array} { | l | r | } 
\hline \t

Question 11

What is the main difference between the income statement of a manufacturer and that of a merchandiser?

Accepted Answer

In the calculation of cost of goods sold

Question 12

________ rejects the notions of "good enough" or "acceptable" and challenges employees and managers to continuously experiment with new and improved business practices.

Accepted Answer

Continuous

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The following information is available for the year ended December 31: $\begin{array} { | l | r | } 
\hline \text { Beginning raw materials inventory } & \$ 21,500 \
\text { Raw materials purchases } & 74,000 \
\hline \text { Ending raw materials inventory } & 23,000 \
\hline \text { Office supplies expense } & 2,400 \
\hline
\end{array}$ The amount of raw materials used in production for the year is:

Accepted Answer

A)  $76,400. 
B)  $95,500. 
C)  $72,500. 
D)  $74,900. 
E)  $70,100. 
A)  $76,400. 
B)  $95,500. 
C)  $72,500. 
D)  $74,900. 
E)  $70,100.

Question 15

Costs that flow directly to the income statement as expenses are called:

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 16

The focus of managerial accounting information is on the organization as a whole.

Accepted Answer

A) True 
 B)False

Question 17

A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:

Accepted Answer

A)  Materials statement. 
B)  Managerial statement. 
C)  Schedule of cost of goods manufactured. 
D)  Merchandise schedule. 
E)  General-purpose statement. 
A)  Materials statement. 
B)  Managerial statement. 
C)  Schedule of cost of goods manufactured. 
D)  Merchandise schedule. 
E)  General-purpose statement.

Question 18

Just-in-time manufacturing is a system that acquires inventory and produces product only when needed for an order.

Accepted Answer

A) True 
 B)False

Question 19

A ________ cost does not change in total in proportion to changes in the volume of activity within the relevant range.

Accepted Answer

The answer of A ________ cost does not change in...

Question 20

Goods a company acquires to use in making products are called:

Accepted Answer

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

The concept of total quality management focuses on continuous improvement.

Factory overhead costs may include all of the following except:

Policies and procedures used by management to monitor and control business activities are known as ________.

One of the usual differences between financial and managerial accounting is the timeliness of the information reported.

Which of the following statements is correct concerning the Days' sales in raw materials inventory?

Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000. Its prime costs total:

Marv's Furniture and Fixtures produces seats for movie theaters. Listed below are selected cost items for the seat production. Classify each cost as either fixed or variable, and either a product or a period cost by placing an x in the appropriate boxes.

Product costs can be classified as one of three types: direct materials, direct labor, or overhead.

What is the main difference between the income statement of a manufacturer and that of a merchandiser?

________ rejects the notions of "good enough" or "acceptable" and challenges employees and managers to continuously experiment with new and improved business practices.

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

The following information is available for the year ended December 31: Beginning raw materials inventory \ 21,500 Raw materials purchases 74,000 Ending raw materials inventory 23,000 Office supplies expense 2,400 The amount of raw materials used in production for the year is:

Costs that flow directly to the income statement as expenses are called:

The focus of managerial accounting information is on the organization as a whole.

A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:

Just-in-time manufacturing is a system that acquires inventory and produces product only when needed for an order.

A ________ cost does not change in total in proportion to changes in the volume of activity within the relevant range.

Goods a company acquires to use in making products are called:

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

Exam 1: Managerial Accounting Concepts and Principles

The concept of total quality management focuses on continuous improvement.

Factory overhead costs may include all of the following except:

Policies and procedures used by management to monitor and control business activities are known as ________.

One of the usual differences between financial and managerial accounting is the timeliness of the information reported.

Which of the following statements is correct concerning the Days' sales in raw materials inventory?

Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000. Its prime costs total:

Marv's Furniture and Fixtures produces seats for movie theaters. Listed below are selected cost items for the seat production. Classify each cost as either fixed or variable, and either a product or a period cost by placing an x in the appropriate boxes.

Product costs can be classified as one of three types: direct materials, direct labor, or overhead.

What is the main difference between the income statement of a manufacturer and that of a merchandiser?

________ rejects the notions of "good enough" or "acceptable" and challenges employees and managers to continuously experiment with new and improved business practices.

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

The following information is available for the year ended December 31: Beginning raw materials inventory \ 21,500 Raw materials purchases 74,000 Ending raw materials inventory 23,000 Office supplies expense 2,400 The amount of raw materials used in production for the year is:

Costs that flow directly to the income statement as expenses are called:

The focus of managerial accounting information is on the organization as a whole.

A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:

Just-in-time manufacturing is a system that acquires inventory and produces product only when needed for an order.

A ________ cost does not change in total in proportion to changes in the volume of activity within the relevant range.

Goods a company acquires to use in making products are called:

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