Question 1

______________________ is the sum of direct labor cost and manufacturing overhead cost.

Accepted Answer

Conversion cost

Question 2

Which of the following would not be found on the income statement of a manufacturer?

Accepted Answer

A)  cost of goods sold 
B)  work in process 
C)  sales revenue 
D)  operating income 
A)  cost of goods sold 
B)  work in process 
C)  sales revenue 
D)  operating income B

Question 3

A __________________ is any item such as a product, customer, department, project, geographic region, plan and so on, for which costs are measured and assigned.

Accepted Answer

cost object

Question 4

Gross margin percent equals

Accepted Answer

A)  gross margin/cost of goods sold. 
B)  operating income/sales revenue. 
C)  gross margin/sales revenue. 
D)  sales revenue/gross margin. 
A)  gross margin/cost of goods sold. 
B)  operating income/sales revenue. 
C)  gross margin/sales revenue. 
D)  sales revenue/gross margin.

Question 5

A cost object is something for which a company wants to know the cost.

Accepted Answer

A) True 
 B)False

Question 6

Assigning costs

Accepted Answer

A)  involves the way that a cost is linked to some cost object. 
B)  tells the company why the money was spent. 
C)  to a cost object using a reasonable and convenient method is allocation. 
D)  all of these. 
A)  involves the way that a cost is linked to some cost object. 
B)  tells the company why the money was spent. 
C)  to a cost object using a reasonable and convenient method is allocation. 
D)  all of these.

Question 7

Which of the following is an example of a tangible product?

Accepted Answer

A)  lawn care 
B)  accounting services 
C)  customer service 
D)  computer 
A)  lawn care 
B)  accounting services 
C)  customer service 
D)  computer

Question 8

Figure 2-8.Last year Quest Company incurred the following costs:
   Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and finished goods were zero.
-Refer to Figure 2-8. Conversion cost per unit was?

Accepted Answer

A)  $50 
B)  $75 
C)  $95 
D)  $125 
A)  $50 
B)  $75 
C)  $95 
D)  $125

Question 9

An income statement of a manufacturer

Accepted Answer

A)  will show the ending balance of work in process. 
B)  contains only manufacturing costs. 
C)  will show the ending balance of materials inventory. 
D)  covers a certain period of time. 
A)  will show the ending balance of work in process. 
B)  contains only manufacturing costs. 
C)  will show the ending balance of materials inventory. 
D)  covers a certain period of time.

Question 10

Select the appropriate definition for each of the items listed below.
-(direct materials + direct labor)/units produced

Accepted Answer

A) per-unit prime cost 
B) per-unit conversion cost 
C) per-unit cost of goods manufactured 
A) per-unit prime cost 
B) per-unit conversion cost 
C) per-unit cost of goods manufactured

Question 11

Select the appropriate classification of the items listed below.
-Chief of surgery's salary at a hospital

Accepted Answer

A) selling expense 
B) administrative expense 
C) direct materials 
D) direct labor 
E) overhead 
A) selling expense 
B) administrative expense 
C) direct materials 
D) direct labor 
E) overhead

Question 12

Select the appropriate definition for each of the items listed below.
-A cost that can be easily traced to a cost object

Accepted Answer

A) period cost 
B) direct cost 
C) opportunity cost 
D) variable cost 
E) indirect cost
F)fixed cost
G)product cost 
A) period cost 
B) direct cost 
C) opportunity cost 
D) variable cost 
E) indirect cost
F)fixed cost
G)product cost

Question 13

Select the appropriate classification for each of the following costs.
-Cost of shipping products to customers

Accepted Answer

A) Period 
B) Product 
A) Period 
B) Product

Question 14

Select the appropriate classification of the output generated by each of the following industries.
-Medical clinic

Accepted Answer

A) Tangible 
B) Intangible 
A) Tangible 
B) Intangible

Question 15

Templar Company, a manufacturing firm, has supplied the following information from its accounting records for the month of November:
  Required:
A. Prepare a Statement of Cost of Goods Manufactured
B. Prepare a Statement of Cost of Goods Sold

Accepted Answer

The answer of Templar Company, a manufacturing firm, has supplied...

Question 16

Select the appropriate classification of the items listed below.
-Cost of shipping goods to customers

Accepted Answer

A) selling expense 
B) administrative expense 
C) direct materials 
D) direct labor 
E) overhead 
A) selling expense 
B) administrative expense 
C) direct materials 
D) direct labor 
E) overhead

Question 17

Allocation means that an indirect cost is assigned to a cost object using a reasonable and convenient method.

Accepted Answer

A) True 
 B)False

Question 18

Cost of goods sold

Accepted Answer

A)  represents all costs associated with research, development, and general administration of the organization. 
B)  is found on the Balance Sheet. 
C)  is the cost of the partially completed goods that are still on the factory floor at the end of the period. 
D)  is the total product cost for the units sold during a period. 
A)  represents all costs associated with research, development, and general administration of the organization. 
B)  is found on the Balance Sheet. 
C)  is the cost of the partially completed goods that are still on the factory floor at the end of the period. 
D)  is the total product cost for the units sold during a period.

Question 19

Expired costs are called

Accepted Answer

A)  fixed. 
B)  costs. 
C)  expenses. 
D)  profit. 
A)  fixed. 
B)  costs. 
C)  expenses. 
D)  profit.

Question 20

Prime cost is

Accepted Answer

A)  indirect materials cost and direct labor cost. 
B)  direct materials cost and direct labor cost. 
C)  direct labor cost and indirect labor cost. 
D)  direct materials cost and indirect labor cost. 
A)  indirect materials cost and direct labor cost. 
B)  direct materials cost and direct labor cost. 
C)  direct labor cost and indirect labor cost. 
D)  direct materials cost and indirect labor cost.

______________________ is the sum of direct labor cost and manufacturing overhead cost.

Which of the following would not be found on the income statement of a manufacturer?

A __________________ is any item such as a product, customer, department, project, geographic region, plan and so on, for which costs are measured and assigned.

Gross margin percent equals

A cost object is something for which a company wants to know the cost.

Assigning costs

Which of the following is an example of a tangible product?

Figure 2-8.Last year Quest Company incurred the following costs: Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and finished goods were zero. -Refer to Figure 2-8. Conversion cost per unit was?

An income statement of a manufacturer

Select the appropriate definition for each of the items listed below. -(direct materials + direct labor)/units produced

Select the appropriate classification of the items listed below. -Chief of surgery's salary at a hospital

Select the appropriate definition for each of the items listed below. -A cost that can be easily traced to a cost object

Select the appropriate classification for each of the following costs. -Cost of shipping products to customers

Select the appropriate classification of the output generated by each of the following industries. -Medical clinic

Templar Company, a manufacturing firm, has supplied the following information from its accounting records for the month of November: Required: A. Prepare a Statement of Cost of Goods Manufactured B. Prepare a Statement of Cost of Goods Sold

Select the appropriate classification of the items listed below. -Cost of shipping goods to customers

Allocation means that an indirect cost is assigned to a cost object using a reasonable and convenient method.

Cost of goods sold

Expired costs are called

Prime cost is

Introduction to Managerial Accounting

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Basic Managerial Accounting Concepts

______________________ is the sum of direct labor cost and manufacturing overhead cost.

Which of the following would not be found on the income statement of a manufacturer?

A __________________ is any item such as a product, customer, department, project, geographic region, plan and so on, for which costs are measured and assigned.

Gross margin percent equals

A cost object is something for which a company wants to know the cost.

Assigning costs

Which of the following is an example of a tangible product?

Figure 2-8.Last year Quest Company incurred the following costs: Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and finished goods were zero. -Refer to Figure 2-8. Conversion cost per unit was?

An income statement of a manufacturer

Select the appropriate definition for each of the items listed below. -(direct materials + direct labor)/units produced

Select the appropriate classification of the items listed below. -Chief of surgery's salary at a hospital

Select the appropriate definition for each of the items listed below. -A cost that can be easily traced to a cost object

Select the appropriate classification for each of the following costs. -Cost of shipping products to customers

Select the appropriate classification of the output generated by each of the following industries. -Medical clinic

Templar Company, a manufacturing firm, has supplied the following information from its accounting records for the month of November: Required: A. Prepare a Statement of Cost of Goods Manufactured B. Prepare a Statement of Cost of Goods Sold

Select the appropriate classification of the items listed below. -Cost of shipping goods to customers

Allocation means that an indirect cost is assigned to a cost object using a reasonable and convenient method.

Cost of goods sold

Expired costs are called

Prime cost is

Introduction to Managerial Accounting

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters