Question 1

Repair and maintenance costs for factory equipment are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 2

Jasper Corporation reports the following cost information for March:   What is the amount of manufacturing overhead incurred by Jasper in March?

Accepted Answer

A) $20,000 
B) $30,270 
C) $13,430 
D) $136,570 
A) $20,000 
B) $30,270 
C) $13,430 
D) $136,570

Question 3

Financial statements prepared for investors and creditors often include forward-looking information because they make decisions based on a company's future prospects.

Accepted Answer

A) True 
 B)False

Question 4

Management's accountability to its suppliers and vendors is to:

Accepted Answer

A) provide products to customers that are safe and free of defects. 
B) obey laws and pay taxes timely. 
C) provide a return on shareholders' investment. 
D) make timely payments and comply with contract terms. 
A) provide products to customers that are safe and free of defects. 
B) obey laws and pay taxes timely. 
C) provide a return on shareholders' investment. 
D) make timely payments and comply with contract terms.

Question 5

Which of the following describes the cost of goods manufactured?

Accepted Answer

A) the cost of the goods that were sold during the period 
B) the total cost of all goods that were completed, or partially completed during the period 
C) the cost of those goods which were completed during the period 
D) total costs in inventory at the end of the period 
A) the cost of the goods that were sold during the period 
B) the total cost of all goods that were completed, or partially completed during the period 
C) the cost of those goods which were completed during the period 
D) total costs in inventory at the end of the period

Question 6

For a manufacturing business, which of the following would be considered a period cost?

Accepted Answer

A) Indirect materials 
B) Factory utilities 
C) Direct labor 
D) Sales salaries 
A) Indirect materials 
B) Factory utilities 
C) Direct labor 
D) Sales salaries

Question 7

The IMA standards of ethical practice require managerial accountants to maintain their professional competence.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

Accepted Answer

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

Question 9

Amoeba Manufacturing Company provided the following information for the year 2015:   The inventory account balances as of January 1st 2015 are given below.   What is the ending balance in the finished goods inventory?

Accepted Answer

A) $49,500 
B) $63,200 
C) $35,800 
D) $24,650 
A) $49,500 
B) $63,200 
C) $35,800 
D) $24,650

Question 10

How is the management of a company accountable to its employees?

Accepted Answer

A) The management must provide products that are safe and free of defects. 
B) The management must provide a safe workplace. 
C) The management must ensure that it earns a net positive return on its investments. 
D) The management must ensure the business is environmentally responsible to its community. 
A) The management must provide products that are safe and free of defects. 
B) The management must provide a safe workplace. 
C) The management must ensure that it earns a net positive return on its investments. 
D) The management must ensure the business is environmentally responsible to its community.

Question 11

A company that uses labor, equipment, supplies, and facilities to convert raw materials into finished products is a:

Accepted Answer

A) merchandising company. 
B) manufacturing company. 
C) service company. 
D) trading company. 
A) merchandising company. 
B) manufacturing company. 
C) service company. 
D) trading company.

Question 12

At the beginning of 2015, Swift Company's Work-in-Process Inventory account had a balance of $120,000. During 2015, $250,000 of direct materials were used in production, and $75,000 of direct labor costs were incurred. Manufacturing overhead amounted to $850,000. The cost of goods manufactured was $675,000. What is the balance in the Work-in-Process Inventory account on December 31, 2015?

Accepted Answer

A) $230,000 
B) $1,295,000 
C) $675,000 
D) $620,000 
A) $230,000 
B) $1,295,000 
C) $675,000 
D) $620,000

Question 13

For a manufacturing firm, which of the following is a product cost?

Accepted Answer

A) Salary of administrative staff 
B) Wages paid to factory janitor 
C) Commissions paid to sales staff 
D) Depreciation on corporate building 
A) Salary of administrative staff 
B) Wages paid to factory janitor 
C) Commissions paid to sales staff 
D) Depreciation on corporate building

Question 14

Which of the following is the primary focus of financial accounting?

Accepted Answer

A) providing information that managers need to make operational decisions 
B) providing summarized information on operational results to investors and creditors 
C) providing budgets for future periods 
D) providing highly detailed information on product lines, regions, divisions, etc. 
A) providing information that managers need to make operational decisions 
B) providing summarized information on operational results to investors and creditors 
C) providing budgets for future periods 
D) providing highly detailed information on product lines, regions, divisions, etc.

Question 15

Which of the following statements is true of management accounting?

Accepted Answer

A) The primary users of management accounting are the external stakeholders of a company. 
B) Management accounting information is used to help managers plan and control their operations. 
C) Management accounting information requires an external audit by an independent CPA. 
D) Management accounting information must comply with Generally Accepted Accounting Principles. 
A) The primary users of management accounting are the external stakeholders of a company. 
B) Management accounting information is used to help managers plan and control their operations. 
C) Management accounting information requires an external audit by an independent CPA. 
D) Management accounting information must comply with Generally Accepted Accounting Principles.

Question 16

Which of the following formulas represents cost of goods sold for a merchandising business?

Accepted Answer

A) Beginning Inventory - Ending Inventory = Cost of Goods Sold 
B) Purchases and Freight In - Ending Inventory = Cost of Goods Sold 
C) Ending Inventory + Purchases and Freight In - Beginning Inventory = Cost of Goods Sold 
D) Beginning Inventory + Purchases and Freight In - Ending Inventory = Cost of Goods Sold 
A) Beginning Inventory - Ending Inventory = Cost of Goods Sold 
B) Purchases and Freight In - Ending Inventory = Cost of Goods Sold 
C) Ending Inventory + Purchases and Freight In - Beginning Inventory = Cost of Goods Sold 
D) Beginning Inventory + Purchases and Freight In - Ending Inventory = Cost of Goods Sold

Question 17

Managerial accounting is used in manufacturing and merchandising companies, but not in service companies.

Accepted Answer

A) True 
 B)False

Question 18

Five Seasons is a merchandiser of packed foods. The company provides the following information for the year 2015:   How much was the unit cost per unit of product sold?

Accepted Answer

A) $3.14 
B) $5.18 
C) $2.33 
D) $0.82 
A) $3.14 
B) $5.18 
C) $2.33 
D) $0.82

Question 19

The Work-in-Process Inventory account includes the:

Accepted Answer

A) goods that are ready to be sold. 
B) goods that are partially completed. 
C) goods that have been sold in the market. 
D) goods that are damaged during production. 
A) goods that are ready to be sold. 
B) goods that are partially completed. 
C) goods that have been sold in the market. 
D) goods that are damaged during production.

Question 20

Indirect materials costs are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Exam 18: Introduction to Managerial Accounting

Repair and maintenance costs for factory equipment are included in manufacturing overhead.

Jasper Corporation reports the following cost information for March: What is the amount of manufacturing overhead incurred by Jasper in March?

Financial statements prepared for investors and creditors often include forward-looking information because they make decisions based on a company's future prospects.

Management's accountability to its suppliers and vendors is to:

Which of the following describes the cost of goods manufactured?

For a manufacturing business, which of the following would be considered a period cost?

The IMA standards of ethical practice require managerial accountants to maintain their professional competence.

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

Amoeba Manufacturing Company provided the following information for the year 2015: The inventory account balances as of January 1st 2015 are given below. What is the ending balance in the finished goods inventory?

How is the management of a company accountable to its employees?

A company that uses labor, equipment, supplies, and facilities to convert raw materials into finished products is a:

For a manufacturing firm, which of the following is a product cost?

Which of the following is the primary focus of financial accounting?

Which of the following statements is true of management accounting?

Which of the following formulas represents cost of goods sold for a merchandising business?

Managerial accounting is used in manufacturing and merchandising companies, but not in service companies.

Five Seasons is a merchandiser of packed foods. The company provides the following information for the year 2015: How much was the unit cost per unit of product sold?

The Work-in-Process Inventory account includes the:

Indirect materials costs are included in manufacturing overhead.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters

Amoeba Manufacturing Company provided the following information for the year 2015: The inventory account balances as of January 1^st 2015 are given below. What is the ending balance in the finished goods inventory?