Question 1

Repair and maintenance costs of vehicles used to deliver products to customers are product costs.

Accepted Answer

A) True 
 B)False

Question 2

Fireox Company's selected cost data for 2015 are shown below:   What is the total of manufacturing costs incurred by Fireox Company in 2015?

Accepted Answer

A) $149,200 
B) $158,300 
C) $139,800 
D) $117,100 
A) $149,200 
B) $158,300 
C) $139,800 
D) $117,100

Question 3

Best Company, a merchandiser, sells office supplies. The following information summarizes Best's operating activities during 2015:   Required: Prepare an income statement for Best Company for the year ended December 31, 2015, using the format below.

Accepted Answer

The answer of Best Company, a merchandiser, sells office supplies....

Question 4

The following information was obtained from Fizz Company:   How much were Fizz's period costs?

Accepted Answer

A) $60,000 
B) $81,000 
C) $92,000 
D) $79,900 
A) $60,000 
B) $81,000 
C) $92,000 
D) $79,900

Question 5

Comparing actual performance to previously budgeted amounts is part of the:

Accepted Answer

A) controlling function of managerial accounting. 
B) planning function of managerial accounting. 
C) reporting function of managerial accounting. 
D) organizing function of managerial accounting. 
A) controlling function of managerial accounting. 
B) planning function of managerial accounting. 
C) reporting function of managerial accounting. 
D) organizing function of managerial accounting.

Question 6

Which of the following describes a system in which suppliers deliver materials at the time they are needed and finished units are completed when customer orders need to be filled?

Accepted Answer

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

Question 7

Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information:   What is the cost of goods sold for 2015?

Accepted Answer

A) $360,000 
B) $304,300 
C) $358,300 
D) $330,000 
A) $360,000 
B) $304,300 
C) $358,300 
D) $330,000

Question 8

Fuchsia Inc. provides automobile services in the local community. The company provides the following information for the month of March:   Fuchsia provided services to 1,500 clients in the month of March and generated $20,500 as revenue. How much is the cost per service?

Accepted Answer

A) $11.77 
B) $5.18 
C) $13.67 
D) $10.63 
A) $11.77 
B) $5.18 
C) $13.67 
D) $10.63

Question 9

Barricades Corporation provided the following information for the year 2015:   What was the total manufacturing cost incurred during the year 2015?

Accepted Answer

A) $744,000 
B) $360,000 
C) $1,414,000 
D) $1,214,000 
A) $744,000 
B) $360,000 
C) $1,414,000 
D) $1,214,000

Question 10

For a manufacturing company, which of the following is a period cost?

Accepted Answer

A) Direct materials 
B) Office rent 
C) Wages expense of factory workers 
D) Indirect materials 
A) Direct materials 
B) Office rent 
C) Wages expense of factory workers 
D) Indirect materials

Question 11

The accountant for Myra Lido deliberately deferred cash payments for business expenses in order to record a higher operating cash flow for the company. As long as the amount was not material, this would not be considered unethical behavior.

Accepted Answer

A) True 
 B)False

Question 12

Management accounting reporting by a public firm is required to follow the rules of GAAP and guidelines of the Securities Exchange Commission.

Accepted Answer

A) True 
 B)False

Question 13

Repair and maintenance costs for factory equipment are product costs.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) Office rent 
B) Wages of factory janitor 
C) Insurance cost of production equipment 
D) Raw materials 
A) Office rent 
B) Wages of factory janitor 
C) Insurance cost of production equipment 
D) Raw materials

Question 15

Sales commissions are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is both a prime cost and a conversion cost?

Accepted Answer

A) Manufacturing overhead 
B) Direct materials 
C) Direct labor 
D) Selling expenses 
A) Manufacturing overhead 
B) Direct materials 
C) Direct labor 
D) Selling expenses

Question 17

For a manufacturer, rent paid for an office building is an example of a period cost.

Accepted Answer

A) True 
 B)False

Question 18

Manufacturing overhead includes all manufacturing costs, such as direct labor and direct materials.

Accepted Answer

A) True 
 B)False

Question 19

Kyanite Corporation reports costs for 2015 as follows:   How much is the total product costs for 2015?

Accepted Answer

A) $30,000 
B) $105,000 
C) $119,000 
D) $75,000 
A) $30,000 
B) $105,000 
C) $119,000 
D) $75,000

Question 20

Damsel Inc. is a large manufacturer of auto tires. Damsel has provided the following information:   Calculate the amount of ending finished goods inventory reported in Damsel's balance sheet.

Accepted Answer

A) $10,500 
B) $36,500 
C) $4,000 
D) $3,500 
A) $10,500 
B) $36,500 
C) $4,000 
D) $3,500

Exam 18: Introduction to Managerial Accounting

Repair and maintenance costs of vehicles used to deliver products to customers are product costs.

Fireox Company's selected cost data for 2015 are shown below: What is the total of manufacturing costs incurred by Fireox Company in 2015?

Best Company, a merchandiser, sells office supplies. The following information summarizes Best's operating activities during 2015: Required: Prepare an income statement for Best Company for the year ended December 31, 2015, using the format below.

The following information was obtained from Fizz Company: How much were Fizz's period costs?

Comparing actual performance to previously budgeted amounts is part of the:

Which of the following describes a system in which suppliers deliver materials at the time they are needed and finished units are completed when customer orders need to be filled?

Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information: What is the cost of goods sold for 2015?

Fuchsia Inc. provides automobile services in the local community. The company provides the following information for the month of March: Fuchsia provided services to 1,500 clients in the month of March and generated $20,500 as revenue. How much is the cost per service?

Barricades Corporation provided the following information for the year 2015: What was the total manufacturing cost incurred during the year 2015?

For a manufacturing company, which of the following is a period cost?

The accountant for Myra Lido deliberately deferred cash payments for business expenses in order to record a higher operating cash flow for the company. As long as the amount was not material, this would not be considered unethical behavior.

Management accounting reporting by a public firm is required to follow the rules of GAAP and guidelines of the Securities Exchange Commission.

Repair and maintenance costs for factory equipment are product costs.

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

Sales commissions are included in manufacturing overhead.

Which of the following is both a prime cost and a conversion cost?

For a manufacturer, rent paid for an office building is an example of a period cost.

Manufacturing overhead includes all manufacturing costs, such as direct labor and direct materials.

Kyanite Corporation reports costs for 2015 as follows: How much is the total product costs for 2015?

Damsel Inc. is a large manufacturer of auto tires. Damsel has provided the following information: Calculate the amount of ending finished goods inventory reported in Damsel's balance sheet.

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