Question 1

All of the following are examples of manufacturing overhead EXCEPT for:

Accepted Answer

A) utilities incurred in the factory. 
B) insurance on factory equipment. 
C) wages of assembly line workers. 
D) indirect materials. 
A) utilities incurred in the factory. 
B) insurance on factory equipment. 
C) wages of assembly line workers. 
D) indirect materials.

Question 2

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.   What is the cost per unit sold?

Accepted Answer

A) $13.00 
B) $12.40 
C) $14.00 
D) $10.40 
A) $13.00 
B) $12.40 
C) $14.00 
D) $10.40

Question 3

T-accounts for the inventory accounts of the Arturo Manufacturing Company are shown below. This data represents transactions for the year of 2012.   Based on the data shown here, what was the amount of the cost of goods manufactured?

Accepted Answer

A) $607,000 
B) $192,000 
C) $28,000 
D) $591,000 
A) $607,000 
B) $192,000 
C) $28,000 
D) $591,000

Question 4

Which of the following events would NOT be considered unethical under IMA standards?

Accepted Answer

A) An accountant told his friends about the bids his company had received from contractors for construction contracts. 
B) An accountant provided a list of his company's foreign transactions to an investigative reporter who was working on a story for the paper. 
C) An accountant provided a list of his company's qualified suppliers to a small businessman that wanted to set up a similar business on his own. 
D) An accountant provided a copy of his company's published financial statements to a relative who owned a business that was directly competing with the accountant's company. 
A) An accountant told his friends about the bids his company had received from contractors for construction contracts. 
B) An accountant provided a list of his company's foreign transactions to an investigative reporter who was working on a story for the paper. 
C) An accountant provided a list of his company's qualified suppliers to a small businessman that wanted to set up a similar business on his own. 
D) An accountant provided a copy of his company's published financial statements to a relative who owned a business that was directly competing with the accountant's company.

Question 5

Which of the following applies to goods that are purchased from a producer and sold by a merchandising company?

Accepted Answer

A) Materials inventory 
B) Work in process inventory 
C) Merchandise inventory 
D) Finished goods inventory 
A) Materials inventory 
B) Work in process inventory 
C) Merchandise inventory 
D) Finished goods inventory

Question 6

The following information was obtained from Sizzler Company:   How much were Sizzler's product costs?

Accepted Answer

A) $102,190 
B) $99,500 
C) $129,090 
D) $101,400 
A) $102,190 
B) $99,500 
C) $129,090 
D) $101,400

Question 7

Which of the following costs do NOT go directly into the work in process account?

Accepted Answer

A) Factory overhead 
B) Indirect labor 
C) Factory janitorial costs 
D) The purchase of raw materials 
A) Factory overhead 
B) Indirect labor 
C) Factory janitorial costs 
D) The purchase of raw materials

Question 8

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

Question 9

Which of the following statements is INCORRECT?

Accepted Answer

A) Managerial accounting is used to determine the cost of products and services. 
B) Managerial accounting is used to plan and control business operations. 
C) Managerial accounting is used to report the company's financial position and results of operations to creditors and investors. 
D) Managerial accounting is used to prepare budgets. 
A) Managerial accounting is used to determine the cost of products and services. 
B) Managerial accounting is used to plan and control business operations. 
C) Managerial accounting is used to report the company's financial position and results of operations to creditors and investors. 
D) Managerial accounting is used to prepare budgets.

Question 10

Management is accountable to various government bodies in which of the following ways?

Accepted Answer

A) Making timely payments to creditors 
B) Making timely payments to vendors 
C) Providing a return on the owner's shareholders' investment 
D) Obeying laws and regulations, and paying taxes 
A) Making timely payments to creditors 
B) Making timely payments to vendors 
C) Providing a return on the owner's shareholders' investment 
D) Obeying laws and regulations, and paying taxes

Question 11

T-accounts for the inventory accounts of the Arturo Manufacturing Company are shown below. This data represents transactions for the year of 2012.   Based on the data shown here, what was the amount of the cost of goods sold?

Accepted Answer

A) $598,500 
B) $591,000 
C) $42,000 
D) $7,500 
A) $598,500 
B) $591,000 
C) $42,000 
D) $7,500

Question 12

Merchandising businesses resell goods which they purchase from a producer.

Accepted Answer

A) True 
 B)False

Question 13

South State Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during 2012. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100; maintenance of $4,500; repairs of $1,800; depreciation of $7,900; and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance.
Required: Prepare a schedule of cost of goods manufactured for South State Company using the format below.

Accepted Answer

The answer of South State Company used $71,000 of direct...

Question 14

Increased global competition has resulted in many companies moving their operations to other countries to be closer to new markets.

Accepted Answer

A) True 
 B)False

Question 15

Given the following information, determine the cost of goods manufactured.

Accepted Answer

A) $781,000 
B) $461,000 
C) $731,000 
D) $765,000 
A) $781,000 
B) $461,000 
C) $731,000 
D) $765,000

Question 16

Which of the following statements about financial accounting is CORRECT?

Accepted Answer

A) Financial accounting is oriented towards helping investors make decisions. 
B) Financial accounting is forward-looking. 
C) Financial accounting is focused on detailed reports on parts of the company. 
D) Financial accounting is focused on planning and controlling operations. 
A) Financial accounting is oriented towards helping investors make decisions. 
B) Financial accounting is forward-looking. 
C) Financial accounting is focused on detailed reports on parts of the company. 
D) Financial accounting is focused on planning and controlling operations.

Question 17

For a manufacturing business, which of the following would not be considered an inventoriable product cost?

Accepted Answer

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

Question 18

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 19

Arturo Manufacturing Company provided the following information for the year 2012:   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 20

Financial reporting is typically much more detailed than managerial accounting.

Accepted Answer

A) True 
 B)False

Exam 16: Introduction to Management Accounting

All of the following are examples of manufacturing overhead EXCEPT for:

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. What is the cost per unit sold?

T-accounts for the inventory accounts of the Arturo Manufacturing Company are shown below. This data represents transactions for the year of 2012. Based on the data shown here, what was the amount of the cost of goods manufactured?

Which of the following events would NOT be considered unethical under IMA standards?

Which of the following applies to goods that are purchased from a producer and sold by a merchandising company?

The following information was obtained from Sizzler Company: How much were Sizzler's product costs?

Which of the following costs do NOT go directly into the work in process account?

Manufacturing overhead includes which of the following?

Which of the following statements is INCORRECT?

Management is accountable to various government bodies in which of the following ways?

T-accounts for the inventory accounts of the Arturo Manufacturing Company are shown below. This data represents transactions for the year of 2012. Based on the data shown here, what was the amount of the cost of goods sold?

Merchandising businesses resell goods which they purchase from a producer.

Increased global competition has resulted in many companies moving their operations to other countries to be closer to new markets.

Given the following information, determine the cost of goods manufactured.

Which of the following statements about financial accounting is CORRECT?

For a manufacturing business, which of the following would not be considered an inventoriable product cost?

Which of the following BEST describes the value chain?

Arturo Manufacturing Company provided the following information for the year 2012: How much is the cost of goods manufactured?

Financial reporting is typically much more detailed than managerial accounting.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandising Inventory

Internal Control and Cash

Receivables

Plant Assets and Intangibles

Current Liabilities and Payroll

Long-Term Liabilities, Bonds Payable, and Classification of Liabilities on the Balance Sheet

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

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