Question 1

For external reporting purposes,GAAP requires companies to treat period costs as assets.

Accepted Answer

A) True 
 B)False

Question 2

The IMA Statement of Ethical Professional Practice includes confidentiality,competence,credibility,and integrity.

Accepted Answer

A) True 
 B)False

Question 3

Unit product costs can be used to measure operating income and determine the cost of Finished Goods Inventory.

Accepted Answer

A) True 
 B)False

Question 4

Anything for which managers want a separate measurement of cost is called a ________.

Accepted Answer

A) responsibility center 
B) cost object 
C) profit object 
D) conversion cost 
A) responsibility center 
B) cost object 
C) profit object 
D) conversion cost

Question 5

Velasco Productions has provided the following information for the year: $$\begin{array} { | l | r | } 
\hline \text { Direct Labor } & \$ 150,000 \
\hline \text { Beginning Work-in-Process Inventory } & 63,000 \
\hline \text { Direct Materials Used } & 269,000 \
\hline \text { Ending Work-in-Process Inventory } & 52,900 \
\hline \text { Manufacturing Overhead } & 135,000 \
\hline
\end{array}$$ During the year,Velasco produced 71,220 units of product.Calculate the unit product cost.(Round your answer to the nearest cent.)

Accepted Answer

A) $7.92 
B) $6.77 
C) $7.78 
D) $8.66 
A) $7.92 
B) $6.77 
C) $7.78 
D) $8.66

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Which of the following would be considered a product cost for a manufacturing business?

Accepted Answer

A) research and development 
B) factory property taxes 
C) advertising 
D) delivery costs 
A) research and development 
B) factory property taxes 
C) advertising 
D) delivery costs

Question 8

Financial and managerial accounting both provide useful information,but each has a different emphasis.Briefly distinguish between financial and managerial accounting as they relate to the 1)primary users,2)purpose of information,and 3)focus and time dimension of the information.

Accepted Answer

The primary users of financial informati

Question 9

Which of the following would be considered a product cost for a manufacturing company?

Accepted Answer

A) depreciation on delivery vehicles 
B) depreciation on administrative building furniture and fixtures 
C) depreciation on manufacturing equipment 
D) depreciation on the accounting department's computer equipment 
A) depreciation on delivery vehicles 
B) depreciation on administrative building furniture and fixtures 
C) depreciation on manufacturing equipment 
D) depreciation on the accounting department's computer equipment

Question 10

Star Health,Inc.is a fitness center in Oklahoma City.In October,the company earned $550,000 in revenues and incurred the following operating costs from 300 customers:
$$\begin{array} {| l | r | } 
\hline \text { Manager's Salary } & \$ 5500 \
\hline \text { Gym Rent } & 1800 \
\hline \text { Depreciation Expense-Equipment } & 7000 \
\hline \text { Office Supplies Expense } & 2300 \
\hline \text { Utilities Expense } & 1600 \
\hline \text { Trainer's Salary } & 22,500 \
\hline
\end{array}$$ How much is the unit cost per customer? (Round your answer to the nearest cent.)

Accepted Answer

A) $93.33 
B) $19.00 
C) $1833.33 
D) $135.67 
A) $93.33 
B) $19.00 
C) $1833.33 
D) $135.67

Question 11

The income statement of a service company will most likely include ________.

Accepted Answer

A) salaries expense 
B) factory overhead 
C) cost of goods sold 
D) direct materials 
A) salaries expense 
B) factory overhead 
C) cost of goods sold 
D) direct materials

Question 12

The unit product cost is only part of the information that is needed to determine the sales price for each product.

Accepted Answer

A) True 
 B)False

Question 13

Staff positions are directly involved in providing goods or services to customers.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would be included as indirect manufacturing costs for a manufacturing company?

Accepted Answer

A) sales commissions 
B) fuel and maintenance for delivery vehicles 
C) wages of the assembly line workers 
D) wages of the factory manager 
A) sales commissions 
B) fuel and maintenance for delivery vehicles 
C) wages of the assembly line workers 
D) wages of the factory manager

Question 15

Yoga Universe,Inc.is a fitness center in Tampa,Florida.In October,the company earned
$550,000 in revenues and incurred the following operating costs from 340 customers:
 $$\begin{array} { | l | r | } 
\hline \text { Manager's salary } & \$ 50,000 \
\hline \text { Gym Rent Expense } & 60,000 \
\hline \text { Depreciation Expense-Equipment } & 25,000 \
\hline \text { Office Supplies Expense } & 30,000 \
\hline \text { Utilities Expense } & 89,700 \
\hline \text { Trainer's Salary } & 25,000 \
\hline
\end{array}$$ Required: Prepare Yoga Universe's income statement for the month of October,2019.

Accepted Answer

The answer of Yoga Universe,Inc.is a fitness center in Tampa,Florida.In...

Question 16

Service companies sell their time,skills,and knowledge.

Accepted Answer

A) True 
 B)False

Question 17

Managerial accounting can be used to calculate costs for service and merchandising companies.

Accepted Answer

A) True 
 B)False

Question 18

Darius Manufacturing,Inc.provided the following information for the year: $\begin{array}{|l|r|}
\hline \text { Purchases }- \text { Direct Materials } & \$ 90,000 \
\hline \text { Plant Utilities and Insurance } & 67,500 \
\hline \text { Indirect Materials Used } & 11,040 \
\hline \text { Indirect Labor } & 4420\
\hline \text { Direct Materials Used in Production } & 99,000 \
\hline \text { Direct Labor } & 119,500 \
\hline \text { Depreciation on Factory Plant and Equipment } & 5000 \
\hline \text { Cost of Goods Manufactured } & 291,500\\hline 
\end{array}$ The inventory account balances as of January 1 are given below.
$$\begin{array} { | l | r | } 
\hline \text { Direct Materials } & \$ 46,000 \
\hline \text { Work-in-Process Inventory } & 1000 \
\hline \text { Finished Goods Inventory } & 50,000 \
\hline
\end{array}$$ What is the ending balance in the Work-in-Process Inventory account?

Accepted Answer

A) $15,960 
B) $1000 
C) $50,000 
D) $45,000 
A) $15,960 
B) $1000 
C) $50,000 
D) $45,000

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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.

For external reporting purposes,GAAP requires companies to treat period costs as assets.

The IMA Statement of Ethical Professional Practice includes confidentiality,competence,credibility,and integrity.

Unit product costs can be used to measure operating income and determine the cost of Finished Goods Inventory.

Anything for which managers want a separate measurement of cost is called a ________.

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

Which of the following would be considered a product cost for a manufacturing business?

Financial and managerial accounting both provide useful information,but each has a different emphasis.Briefly distinguish between financial and managerial accounting as they relate to the 1)primary users,2)purpose of information,and 3)focus and time dimension of the information.

Which of the following would be considered a product cost for a manufacturing company?

The income statement of a service company will most likely include ________.

The unit product cost is only part of the information that is needed to determine the sales price for each product.

Staff positions are directly involved in providing goods or services to customers.

Which of the following would be included as indirect manufacturing costs for a manufacturing company?

Service companies sell their time,skills,and knowledge.

Managerial accounting can be used to calculate costs for service and merchandising companies.

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

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

Accounting Information Systems

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 16: Introduction to Managerial Accounting

For external reporting purposes,GAAP requires companies to treat period costs as assets.

The IMA Statement of Ethical Professional Practice includes confidentiality,competence,credibility,and integrity.

Unit product costs can be used to measure operating income and determine the cost of Finished Goods Inventory.

Anything for which managers want a separate measurement of cost is called a ________.

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

Which of the following would be considered a product cost for a manufacturing business?

Financial and managerial accounting both provide useful information,but each has a different emphasis.Briefly distinguish between financial and managerial accounting as they relate to the 1)primary users,2)purpose of information,and 3)focus and time dimension of the information.

Which of the following would be considered a product cost for a manufacturing company?

The income statement of a service company will most likely include ________.

The unit product cost is only part of the information that is needed to determine the sales price for each product.

Staff positions are directly involved in providing goods or services to customers.

Which of the following would be included as indirect manufacturing costs for a manufacturing company?

Service companies sell their time,skills,and knowledge.

Managerial accounting can be used to calculate costs for service and merchandising companies.

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

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

Accounting Information Systems

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Filters