Question 1

Selling and administrative expenses are normally product costs.

Accepted Answer

A) True 
 B)False

Question 2

Companies A, B, C, and D are competitors in the same industry.Assume that all have adequate quantities of raw materials to meet production needs.   Which company has the best raw materials inventory turnover?

Accepted Answer

A) Company A 
B) Company B 
C) Company C 
D) Company D 
E) Company E 
A) Company A 
B) Company B 
C) Company C 
D) Company D 
E) Company E

Question 3

Indirect materials are accounted for as factory overhead because they are not easily traced to specific units or batches of production.

Accepted Answer

A) True 
 B)False

Question 4

Assuming production needs can be met, companies usually prefer:

Accepted Answer

A) A lower number of days' sales in raw materials inventory. 
B) A higher number of days' sales in raw materials inventory. 
C) That days' sales in inventory be higher than the days in the accounting period. 
D) That days' sales in inventory be greater than the operating cycle 
E) That days' sales in inventory be equal to the days in the accounting period 
A) A lower number of days' sales in raw materials inventory. 
B) A higher number of days' sales in raw materials inventory. 
C) That days' sales in inventory be higher than the days in the accounting period. 
D) That days' sales in inventory be greater than the operating cycle 
E) That days' sales in inventory be equal to the days in the accounting period

Question 5

An _____________________ cost requires the future outlay of cash and is relevant for decision making.

Accepted Answer

The answer of An _____________________ cost requires the future outlay...

Question 6

Describe the three types of inventories that are carried by manufacturers..

Accepted Answer

Manufacturers carry three types of inven

Question 7

Manufacturers usually have three inventories: raw materials, goods in process, and finished goods.

Accepted Answer

A) True 
 B)False

Question 8

The concept of total quality management focuses on continuous improvement.

Accepted Answer

A) True 
 B)False

Question 9

Indirect labor refers to the cost of the workers whose efforts are directly traceable to specific units or batches of product.

Accepted Answer

A) True 
 B)False

Question 10

Use the following information for Acme, Inc., as of December 31 to answer the next questions:
 
-What is the total amount of manufacturing costs added to Goods In Process?

Accepted Answer

A) $393,000. 
B) $325,000. 
C) $389,500. 
D) $397,000. 
E) $307,500. 
A) $393,000. 
B) $325,000. 
C) $389,500. 
D) $397,000. 
E) $307,500.

Question 11

HiFi Sound Systems produces speakers for movie theaters that sell for $1,200 each.Listed below are selected cost items for the production of 600 units.
   Classify each cost as either fixed or variable, and either a product or a period cost.

Accepted Answer

@#IMG-DLM&_TB6311_00

Question 12

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 13

The management concept of customer orientation causes a company to spend large amounts on advertising to convince customers to buy the company's standard products.

Accepted Answer

A) True 
 B)False

Question 14

Total quality management and just-in-time manufacturing are two modern systems designed to improve the quality of management and the products and services offered.

Accepted Answer

A) True 
 B)False

Question 15

The focus of managerial accounting is on providing ________________ reports while the focus of financial accounting is on providing _____________reports.

Accepted Answer

The answer of The focus of managerial accounting is on...

Question 16

The potential benefit lost by taking a specific action from two or more choices is an _____________________________.

Accepted Answer

The answer of The potential benefit lost by taking a...

Question 17

Period costs are incurred by purchasing merchandise or manufacturing finished goods.

Accepted Answer

A) True 
 B)False

Question 18

Cost concepts such as variable, fixed, mixed, direct, and indirect apply only to manufacturers and not to service companies.

Accepted Answer

A) True 
 B)False

Question 19

The total cost of goods completed during the accounting period for a manufacturer is called:

Accepted Answer

A)  Ending finished goods inventory. 
B)  Total manufacturing costs. 
C)  Ending goods in process inventory. 
D)  Cost of goods manufactured. 
E)  Cost of goods sold. 
A)  Ending finished goods inventory. 
B)  Total manufacturing costs. 
C)  Ending goods in process inventory. 
D)  Cost of goods manufactured. 
E)  Cost of goods sold.

Question 20

Current information for the Austin Company follows:   All raw materials used were traceable to specific batches of product.Austin Company's cost of goods manufactured for the year is:

Accepted Answer

A) $125,800 
B) $128,600 
C) $131,400 
D) $137,000 
E) $139,000 
A) $125,800 
B) $128,600 
C) $131,400 
D) $137,000 
E) $139,000

Selling and administrative expenses are normally product costs.

Companies A, B, C, and D are competitors in the same industry.Assume that all have adequate quantities of raw materials to meet production needs. Which company has the best raw materials inventory turnover?

Indirect materials are accounted for as factory overhead because they are not easily traced to specific units or batches of production.

Assuming production needs can be met, companies usually prefer:

An _____________________ cost requires the future outlay of cash and is relevant for decision making.

Describe the three types of inventories that are carried by manufacturers..

Manufacturers usually have three inventories: raw materials, goods in process, and finished goods.

The concept of total quality management focuses on continuous improvement.

Indirect labor refers to the cost of the workers whose efforts are directly traceable to specific units or batches of product.

Use the following information for Acme, Inc., as of December 31 to answer the next questions: -What is the total amount of manufacturing costs added to Goods In Process?

HiFi Sound Systems produces speakers for movie theaters that sell for $1,200 each.Listed below are selected cost items for the production of 600 units. Classify each cost as either fixed or variable, and either a product or a period cost.

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

The management concept of customer orientation causes a company to spend large amounts on advertising to convince customers to buy the company's standard products.

Total quality management and just-in-time manufacturing are two modern systems designed to improve the quality of management and the products and services offered.

The focus of managerial accounting is on providing ____ reports while the focus of financial accounting is on providing _reports.

The potential benefit lost by taking a specific action from two or more choices is an _____________________________.

Period costs are incurred by purchasing merchandise or manufacturing finished goods.

Cost concepts such as variable, fixed, mixed, direct, and indirect apply only to manufacturers and not to service companies.

The total cost of goods completed during the accounting period for a manufacturer is called:

Current information for the Austin Company follows: All raw materials used were traceable to specific batches of product.Austin Company's cost of goods manufactured for the year is:

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

Filters

Exam 1: Managerial Accounting Concepts and Principles

Selling and administrative expenses are normally product costs.

Companies A, B, C, and D are competitors in the same industry.Assume that all have adequate quantities of raw materials to meet production needs. Which company has the best raw materials inventory turnover?

Indirect materials are accounted for as factory overhead because they are not easily traced to specific units or batches of production.

Assuming production needs can be met, companies usually prefer:

An _____________________ cost requires the future outlay of cash and is relevant for decision making.

Describe the three types of inventories that are carried by manufacturers..

Manufacturers usually have three inventories: raw materials, goods in process, and finished goods.

The concept of total quality management focuses on continuous improvement.

Indirect labor refers to the cost of the workers whose efforts are directly traceable to specific units or batches of product.

Use the following information for Acme, Inc., as of December 31 to answer the next questions: -What is the total amount of manufacturing costs added to Goods In Process?

HiFi Sound Systems produces speakers for movie theaters that sell for $1,200 each.Listed below are selected cost items for the production of 600 units. Classify each cost as either fixed or variable, and either a product or a period cost.

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

The management concept of customer orientation causes a company to spend large amounts on advertising to convince customers to buy the company's standard products.

Total quality management and just-in-time manufacturing are two modern systems designed to improve the quality of management and the products and services offered.

The focus of managerial accounting is on providing ________________ reports while the focus of financial accounting is on providing _____________reports.

The potential benefit lost by taking a specific action from two or more choices is an _____________________________.

Period costs are incurred by purchasing merchandise or manufacturing finished goods.

Cost concepts such as variable, fixed, mixed, direct, and indirect apply only to manufacturers and not to service companies.

The total cost of goods completed during the accounting period for a manufacturer is called:

Current information for the Austin Company follows: All raw materials used were traceable to specific batches of product.Austin Company's cost of goods manufactured for the year is:

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

Filters

The focus of managerial accounting is on providing ____ reports while the focus of financial accounting is on providing _reports.