Question 1

Period costs are incurred by manufacturing finished goods.

Accepted Answer

A) True 
 B)False

Question 2

Using the information below,calculate the cost of goods manufactured for the period:

Accepted Answer

A) $553,000. 
B) $536,000. 
C) $549,000. 
D) $527,000. 
E) $525,000. 
A) $553,000. 
B) $536,000. 
C) $549,000. 
D) $527,000. 
E) $525,000.

Question 3

Castillo Co.manufactures staples.Costs for October were direct labor,$84,000; indirect labor,$36,700; direct materials,$55,900; factory maintenance,$4,800; factory utilities,$3,200; and insurance on plant and equipment,$700.What is the company's total factory overhead cost for October?

Accepted Answer

The answer of Castillo Co.manufactures staples.Costs for October were direct...

Question 4

One of the main differences between the calculation of cost of goods sold for a merchandiser and that of a manufacturer is that the calculation includes cost of goods purchased for the merchandiser,but the manufacturer replaces that with ________.

Accepted Answer

cost of go

Question 5

Product costs can be classified as one of three types: direct materials,direct labor,or factory overhead.

Accepted Answer

A) True 
 B)False

Question 6

A management concept that seeks to uncover and eliminate waste in business activities is called:

Accepted Answer

A) Continuous operations. 
B) Customer orientation. 
C) Just-in-time. 
D) Theory of constraints. 
E) Lean business model. 
A) Continuous operations. 
B) Customer orientation. 
C) Just-in-time. 
D) Theory of constraints. 
E) Lean business model.

Question 7

Information for Maxim Manufacturing is presented below.Compute both the cost of goods manufactured and the cost of goods sold for Maxim Manufacturing.

Accepted Answer

The answer of Information for Maxim Manufacturing is presented below.Compute...

Question 8

The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

Accepted Answer

A) Just-in-time manufacturing model. 
B) Managerial accounting model. 
C) Corporate social responsibility model. 
D) Continuous improvement model. 
E) Lean business model. 
A) Just-in-time manufacturing model. 
B) Managerial accounting model. 
C) Corporate social responsibility model. 
D) Continuous improvement model. 
E) Lean business model.

Question 9

Managerial accounting information:

Accepted Answer

A) Is used mainly by external users. 
B) Involves gathering information about costs for planning and control decisions. 
C) Is generally the only accounting information available to managers. 
D) Can be used for control purposes but not for planning purposes. 
E) Has little to do with controlling costs. 
A) Is used mainly by external users. 
B) Involves gathering information about costs for planning and control decisions. 
C) Is generally the only accounting information available to managers. 
D) Can be used for control purposes but not for planning purposes. 
E) Has little to do with controlling costs.

Question 10

Using the information below,compute the days' sales in raw materials inventory:

Accepted Answer

A) 11.02. 
B) 36.3. 
C) 10.06. 
D) 9.94. 
E) 38.4. 
A) 11.02. 
B) 36.3. 
C) 10.06. 
D) 9.94. 
E) 38.4.

Question 11

Both financial and managerial accounting affect user's decisions and actions.

Accepted Answer

A) True 
 B)False

Question 12

Costs may be classified by many different cost classifications.

Accepted Answer

A) True 
 B)False

Question 13

-Calculate the cost of goods sold using the above information:

Accepted Answer

A) $680,500. 
B) $701,900. 
C) $687,100. 
D) $674,600. 
E) $772,600. 
A) $680,500. 
B) $701,900. 
C) $687,100. 
D) $674,600. 
E) $772,600.

Question 14

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance.

Accepted Answer

A) True 
 B)False

Question 15

Period costs can refer to expenditures necessary to manufacture products during the time period.

Accepted Answer

A) True 
 B)False

Question 16

Current information for the Healey Company follows:  All raw materials used were traceable to specific units of product.
-Healey 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.

Question 17

Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.

Accepted Answer

A) True 
 B)False

Question 18

Indirect costs cannot be easily and cost-beneficially traced to a single cost object.

Accepted Answer

A) True 
 B)False

Question 19

Factory overhead costs may include all of the following except:

Accepted Answer

A) Indirect labor costs. 
B) Indirect material costs. 
C) Selling costs. 
D) Assembly supplies. 
E) Factory rent. 
A) Indirect labor costs. 
B) Indirect material costs. 
C) Selling costs. 
D) Assembly supplies. 
E) Factory rent.

Question 20

Crane,Inc.reported the following data regarding costs and inventories for the current year: beginning work in process inventory,$4,000; beginning finished goods inventory,$2,000; cost of goods manufactured,$11,500; operating expenses,$3,000; ending finished goods inventory,$1,000; ending work in process inventory,$1,500.Cost of goods sold for Crane,Inc.equals ________.

Accepted Answer

$12,500
Beginning Finished Goo

Exam 14: Managerial Accounting Concepts and Principles

Period costs are incurred by manufacturing finished goods.

Using the information below,calculate the cost of goods manufactured for the period:

Castillo Co.manufactures staples.Costs for October were direct labor,$84,000; indirect labor,$36,700; direct materials,$55,900; factory maintenance,$4,800; factory utilities,$3,200; and insurance on plant and equipment,$700.What is the company's total factory overhead cost for October?

One of the main differences between the calculation of cost of goods sold for a merchandiser and that of a manufacturer is that the calculation includes cost of goods purchased for the merchandiser,but the manufacturer replaces that with ________.

Product costs can be classified as one of three types: direct materials,direct labor,or factory overhead.

A management concept that seeks to uncover and eliminate waste in business activities is called:

Information for Maxim Manufacturing is presented below.Compute both the cost of goods manufactured and the cost of goods sold for Maxim Manufacturing.

The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

Managerial accounting information:

Using the information below,compute the days' sales in raw materials inventory:

Both financial and managerial accounting affect user's decisions and actions.

Costs may be classified by many different cost classifications.

-Calculate the cost of goods sold using the above information:

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance.

Period costs can refer to expenditures necessary to manufacture products during the time period.

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

Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.

Indirect costs cannot be easily and cost-beneficially traced to a single cost object.

Factory overhead costs may include all of the following except:

Accounting in Business

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

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