Question 1

The wages and benefits of the assembly line workers are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a management approach designed to set higher and higher goals in order to make continuous improvement?

Accepted Answer

A)  Supply chain management 
B)  Just-in-time (JIT) 
C)  Enterprise resource planning 
D)  Total quality management 
A)  Supply chain management 
B)  Just-in-time (JIT) 
C)  Enterprise resource planning 
D)  Total quality management

Question 3

Indirect materials costs like lubes and cleaning fluids are product costs.

Accepted Answer

A) True 
 B)False

Question 4

Arturo Manufacturing Company provided the following information for the year 2012: $$\begin{array} { l r } 
\text { Beginning balance-work in process inventory } & \$ 12,000 \
\text { Ending balance-work in process inventory } & \$ 28,000 \
\text { Beginning balance-direct materials inventory } & \$ 42,000 \
\text { Ending balance-direct materials inventory } & \$ 30,000 \
\text { Purchases-direct materials } & \$ 180,000 \
\text { Direct labor } & \$ 235,000 \
\text { Indirect materials } & \$ 23,500 \
\text { Indirect labor } & \$ 9,500 \
\text { Depreciation on factory plant \& equipment } & \$ 12,000 \
\text { Plant utilities \& insurance } & \$ 135,000
\end{array}$$
-
How much is the cost of goods manufactured?

Accepted Answer

A)  $591,000 
B)  $607,000 
C)  $619,000 
D)  $579,000 
A)  $591,000 
B)  $607,000 
C)  $619,000 
D)  $579,000

Question 5

Your company is doing well and you tell your sister that the company will report earnings that are significantly higher than the financial analysts' estimated. Which IMA guideline has been violated?

Accepted Answer

A)  Objectivity 
B)  Competence 
C)  Confidentiality 
D)  Integrity 
A)  Objectivity 
B)  Competence 
C)  Confidentiality 
D)  Integrity

Question 6

Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balance-work in process inventory $12,000
Ending balance-work in process inventory $28,000
Beginning balance-direct materials inventory $42,000
Ending balance-direct materials inventory $30,000
Purchases-direct materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
What was the amount of manufacturing overhead costs?

Accepted Answer

A)  $180,000 
B)  $156,500 
C)  $147,000 
D)  $135,000 
A)  $180,000 
B)  $156,500 
C)  $147,000 
D)  $135,000

Question 7

The wages and benefits of the sales staff are product costs.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following properly describes the accounting for advertising costs?

Accepted Answer

A)  Advertising costs are product costs and are expensed as incurred. 
B)  Advertising costs are period costs and are expensed as incurred. 
C)  Advertising costs are product costs and are expensed when the manufactured product is sold. 
D)  Advertising costs are period costs and are expensed when the manufactured product is sold. 
A)  Advertising costs are product costs and are expensed as incurred. 
B)  Advertising costs are period costs and are expensed as incurred. 
C)  Advertising costs are product costs and are expensed when the manufactured product is sold. 
D)  Advertising costs are period costs and are expensed when the manufactured product is sold.

Question 9

Which of the following BEST describes the value chain?

Accepted Answer

A)  A management information system which tracks the costs of products through the manufacturing process 
B)  The minimizing of inventory levels to reduce storage, insurance and finance costs 
C)  All activities that contribute to the continuous improvement of business operations 
D)  The whole sequence of activities that add value to the goods and services sold to end-users 
A)  A management information system which tracks the costs of products through the manufacturing process 
B)  The minimizing of inventory levels to reduce storage, insurance and finance costs 
C)  All activities that contribute to the continuous improvement of business operations 
D)  The whole sequence of activities that add value to the goods and services sold to end-users

Question 10

Managerial accounting includes the controlling function. Which of the following items would be part of the controlling function of a business's managerial accounting?

Accepted Answer

A)  Comparing actual performance to previously budgeted amounts 
B)  Creating detailed budgets 
C)  Devising marketing and production plans 
D)  Setting product prices 
A)  Comparing actual performance to previously budgeted amounts 
B)  Creating detailed budgets 
C)  Devising marketing and production plans 
D)  Setting product prices

Question 11

Maintaining confidentiality of company information is a key element of ethical professional practice.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT a product cost?

Accepted Answer

A)  Indirect labor 
B)  Depreciation of factory equipment 
C)  Indirect materials 
D)  Depreciation of corporate headquarters 
A)  Indirect labor 
B)  Depreciation of factory equipment 
C)  Indirect materials 
D)  Depreciation of corporate headquarters

Question 13

Arturo Manufacturing Company provided the following information for the year 2012:
 $$\begin{array} { l r } 
\text { Beginning balance-work in process inventory } & \$ 12,000 \
\text { Ending balance-work in process inventory } & \$ 28,000 \
\text { Beginning balance-direct materials inventory } & \$ 42,000 \
\text { Ending balance-direct materials inventory } & \$ 30,000 \
\text { Purchases-direct materials } & \$ 180,000 \
\text { Direct labor } & \$ 235,000 \
\text { Indirect materials } & \$ 23,500 \
\text { Indirect labor } & \$ 9,500 \
\text { Depreciation on factory plant \& equipment } & \$ 12,000 \
\text { Plant utilities \& insurance } & \$ 135,000
\end{array}$$ 
-Please prepare a statement of the cost of goods manufactured using the following format:
 \[\begin{array} { | l | l | l | l | } 
\hline \text { COST OF GOODS MFGD } &\quad\quad\quad  &\quad\quad\quad  &\quad\quad\quad  \
\hline \text { Beginning work in process } & & & \ 
\hline \text { Direct materials used: } & & & \
\hline \text { Beginning direct materials inventory } & & & \
\hline \text { Purchases direct materials } & & & \
\hline \text { Available for use } & & & \
\hline \text { Ending direct materials inventory } & & & \
\hline \text { Direct materials used } & & & \
\hline \text { Direct labor } & & & \
\hline \text { Manufacturing overhead: } & & & \
\hline \text { Indirect materials } & & & \
\hline \text { Indirect labor } & & & \
\hline \text { Depreciation - plant \& equip. } & & & \
\hline \text { Plant utilities \& insurance } & & & \
\hline \text { Total manufacturing overhead } & & & \
\hline \text { Total mfg costs incurred } & & & \
\hline \text { Total mfg costs to account for } & & & \
\hline \text { Ending work in process } & & & \
\hline \text { Cost of goods manufactured } & & & \
\hline
\end{array}\]

Accepted Answer

This question is not

Question 14

Selected data for Young Company for 2012 is presented below:
$\begin{array}{|l|r|}
\hline \text { Direct labor incurred } & \$ 30,000 \
\hline \text { Indirect labor incurred } & 21,000 \
\hline \text { Factory depreciation } & 5,000 \
\hline \text { Factory utilities } & 7,000 \
\hline \text { Indirect materials used } & 2,000 \
\hline \text { Direct materials used } & 12,000 \
\hline \text { Property taxes on factory building } & 3,000 \
\hline \text { Sales commissions } & 8,000 \
\hline
\end{array}$
What is the manufacturing overhead?

Accepted Answer

A)  $47,000 
B)  $50,000 
C)  $38,000 
D)  $46,000 
A)  $47,000 
B)  $50,000 
C)  $38,000 
D)  $46,000

Question 15

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in manufacturing overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $21,000 respectively. What is the cost of goods manufactured?

Accepted Answer

A)  $250,000 
B)  $229,000 
C)  $215,000 
D)  $222,000 
A)  $250,000 
B)  $229,000 
C)  $215,000 
D)  $222,000

Question 16

Selling and administrative expenses are subtracted from cost of goods sold to obtain gross profit.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following would probably be considered an indirect material cost in a bakery?

Accepted Answer

A)  Spices 
B)  Flour 
C)  Milk 
D)  Eggs 
A)  Spices 
B)  Flour 
C)  Milk 
D)  Eggs

Question 18

The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.
$\begin{array}{|l|r|}
\hline \text { Purchases } & \$ 126,000 \
\hline \text { Selling and Administrative Expenses } & 90,000 \
\hline \text { Merchandise inventory, } 1 / 1 / 2012 & 14,000 \
\hline \text { Merchandise inventory, } 12 / 31 / 2012 & 10,000 \
\hline \text { Sales Revenue } & 250,000 \
\hline
\end{array}$ 
-
What is the gross profit percentage?

Accepted Answer

A)  48% 
B)  56% 
C)  36% 
D)  100% 
A)  48% 
B)  56% 
C)  36% 
D)  100%

Question 19

Management accounting often requires forward-looking data because of the futuristic nature of many business decisions.

Accepted Answer

A) True 
 B)False

Question 20

Manufacturing overhead includes which of the following?

Accepted Answer

A)  Indirect labor and indirect materials 
B)  Salaries of salesmen 
C)  Direct materials and direct labor 
D)  Delivery costs to ship goods to customers 
A)  Indirect labor and indirect materials 
B)  Salaries of salesmen 
C)  Direct materials and direct labor 
D)  Delivery costs to ship goods to customers

The wages and benefits of the assembly line workers are included in manufacturing overhead.

Which of the following is a management approach designed to set higher and higher goals in order to make continuous improvement?

Indirect materials costs like lubes and cleaning fluids are product costs.

Your company is doing well and you tell your sister that the company will report earnings that are significantly higher than the financial analysts' estimated. Which IMA guideline has been violated?

The wages and benefits of the sales staff are product costs.

Which of the following properly describes the accounting for advertising costs?

Which of the following BEST describes the value chain?

Managerial accounting includes the controlling function. Which of the following items would be part of the controlling function of a business's managerial accounting?

Maintaining confidentiality of company information is a key element of ethical professional practice.

Which of the following is NOT a product cost?

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in manufacturing overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $21,000 respectively. What is the cost of goods manufactured?

Selling and administrative expenses are subtracted from cost of goods sold to obtain gross profit.

Which of the following would probably be considered an indirect material cost in a bakery?

Management accounting often requires forward-looking data because of the futuristic nature of many business decisions.

Manufacturing overhead includes which of the following?

Corporations: Paid-In Capital and the Balance Sheet

Corporations: Effects on Retained Earnings and the Income Statement

The Statement of Cash Flows

Financial Statement Analysis

Job Order and Process Costing

Activity-Based Costing and Other Cost Management Tools

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Filters

Exam 16: Introduction to Management Accounting

The wages and benefits of the assembly line workers are included in manufacturing overhead.

Which of the following is a management approach designed to set higher and higher goals in order to make continuous improvement?

Indirect materials costs like lubes and cleaning fluids are product costs.

Your company is doing well and you tell your sister that the company will report earnings that are significantly higher than the financial analysts' estimated. Which IMA guideline has been violated?

The wages and benefits of the sales staff are product costs.

Which of the following properly describes the accounting for advertising costs?

Which of the following BEST describes the value chain?

Managerial accounting includes the controlling function. Which of the following items would be part of the controlling function of a business's managerial accounting?

Maintaining confidentiality of company information is a key element of ethical professional practice.

Which of the following is NOT a product cost?

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in manufacturing overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $21,000 respectively. What is the cost of goods manufactured?

Selling and administrative expenses are subtracted from cost of goods sold to obtain gross profit.

Which of the following would probably be considered an indirect material cost in a bakery?

Management accounting often requires forward-looking data because of the futuristic nature of many business decisions.

Manufacturing overhead includes which of the following?

Corporations: Paid-In Capital and the Balance Sheet

Corporations: Effects on Retained Earnings and the Income Statement

The Statement of Cash Flows

Financial Statement Analysis

Job Order and Process Costing

Activity-Based Costing and Other Cost Management Tools

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Filters