Question 1

Which of the following is not part of the production activity in the flow of manufacturing activities?

Accepted Answer

A) Beginning Work in Process Inventory. 
B) Cost of goods manufactured. 
C) Direct labor. 
D) Factory overhead. 
E) Total finished goods available for sale. 
A) Beginning Work in Process Inventory. 
B) Cost of goods manufactured. 
C) Direct labor. 
D) Factory overhead. 
E) Total finished goods available for sale.

Question 2

The following cost items relate to the Henning Company.Classify each cost as a variable cost or a fixed cost by placing an X in the appropriate column.Each cost should be evaluated by how it changes in total with changes in the volume of activity.Also indicate with an X for each item if it is a product cost or a period cost.

Accepted Answer

The answer of The following cost items relate to the...

Question 3

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

Accepted Answer

A) $58,600. 
B) $60,000. 
C) $75,200. 
D) $76,600. 
E) $61,400. 
A) $58,600. 
B) $60,000. 
C) $75,200. 
D) $76,600. 
E) $61,400.

Question 4

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

Accepted Answer

A) 6.76. 
B) 6.02. 
C) 54.0. 
D) 60.6. 
E) 6.37. 
A) 6.76. 
B) 6.02. 
C) 54.0. 
D) 60.6. 
E) 6.37.

Question 5

List the four goals of an internal control system.

Accepted Answer

An internal control system is

Question 6

Which of the following accounts would not appear on a schedule of cost of goods manufactured?

Accepted Answer

A) Wages payable. 
B) Raw materials inventory. 
C) Depreciation on factory equipment. 
D) Indirect labor. 
E) Factory insurance expired. 
A) Wages payable. 
B) Raw materials inventory. 
C) Depreciation on factory equipment. 
D) Indirect labor. 
E) Factory insurance expired.

Question 7

A ________ cost does not change in total in proportion to changes in the volume of activity within the relevant range.

Accepted Answer

The answer of A ________ cost does not change in...

Question 8

Both financial and managerial accounting report monetary information; managerial accounting also reports considerable nonmonetary information.

Accepted Answer

A) True 
 B)False

Question 9

The following items for Neptune Company are used to compute the cost of goods manufactured and the cost of goods sold.Indicate how each item should be used in the calculations by filling in the blanks with "+" if the item is to be added,"-" if the item is to be subtracted,or "0" if the item is not used in the calculation.The first item is completed as an example.

Accepted Answer

The answer of The following items for Neptune Company are...

Question 10

Mustang Corporation reports the following for the month of April:  The cost of goods sold for April is:

Accepted Answer

A) $169,300. 
B) $108,900. 
C) $59,700. 
D) $120,100. 
E) $144,700. 
A) $169,300. 
B) $108,900. 
C) $59,700. 
D) $120,100. 
E) $144,700.

Question 11

________ are beliefs that distinguish right from wrong.

Accepted Answer

The answer of ________ are beliefs that distinguish right from...

Question 12

Just-in-time manufacturing (JIT)focuses on quality improvement and applies this standard to all aspects of business activities.

Accepted Answer

A) True 
 B)False

Question 13

________ rejects the notions of "good enough" or "acceptable" and challenges employees and managers to continuously experiment with new and improved business practices.

Accepted Answer

Continuous

Question 14

Walter Co.and Sandburg Industries report the following information at December 31:
   Required:
(a)Which company is a manufacturer? Explain.
(b)Prepare the current assets section of the balance sheet for the manufacturer.

Accepted Answer

(a)Sandburg Industries is the manufactur

Question 15

Xia Co.manufactures a single product.All raw materials used are traceable to specific units of product.Current information for company follows:  
 The company's cost of direct materials used,cost of goods manufactured and cost of goods sold is:

Accepted Answer

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

Question 16

Policies and procedures used by management to monitor and control business activities are known as ________.

Accepted Answer

The answer of Policies and procedures used by management to...

Question 17

Both financial and managerial accounting rely on accepted principles that are enforced through an extensive set of rules and guidelines.

Accepted Answer

A) True 
 B)False

Question 18

A company's prime costs total $4,500,000 and its conversion costs total $5,500,000.If direct materials costs are $2,000,000,calculate the overhead costs:

Accepted Answer

A) $2,500,000. 
B) $3,500,000. 
C) $2,000,000. 
D) $1,000,000. 
E) $3,000,000. 
A) $2,500,000. 
B) $3,500,000. 
C) $2,000,000. 
D) $1,000,000. 
E) $3,000,000.

Question 19

The sales commission incurred based on units of product sold during the month is an example of a product cost.

Accepted Answer

A) True 
 B)False

Question 20

Product costs are capitalized as inventory on the balance sheet and period costs are expensed on the income statement.

Accepted Answer

A) True 
 B)False

Exam 14: Managerial Accounting Concepts and Principles

Which of the following is not part of the production activity in the flow of manufacturing activities?

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

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

List the four goals of an internal control system.

Which of the following accounts would not appear on a schedule of cost of goods manufactured?

A ________ cost does not change in total in proportion to changes in the volume of activity within the relevant range.

Both financial and managerial accounting report monetary information; managerial accounting also reports considerable nonmonetary information.

Mustang Corporation reports the following for the month of April: The cost of goods sold for April is:

________ are beliefs that distinguish right from wrong.

Just-in-time manufacturing (JIT)focuses on quality improvement and applies this standard to all aspects of business activities.

________ rejects the notions of "good enough" or "acceptable" and challenges employees and managers to continuously experiment with new and improved business practices.

Walter Co.and Sandburg Industries report the following information at December 31: Required: (a)Which company is a manufacturer? Explain. (b)Prepare the current assets section of the balance sheet for the manufacturer.

Xia Co.manufactures a single product.All raw materials used are traceable to specific units of product.Current information for company follows: The company's cost of direct materials used,cost of goods manufactured and cost of goods sold is:

Policies and procedures used by management to monitor and control business activities are known as ________.

Both financial and managerial accounting rely on accepted principles that are enforced through an extensive set of rules and guidelines.

A company's prime costs total $4,500,000 and its conversion costs total $5,500,000.If direct materials costs are $2,000,000,calculate the overhead costs:

The sales commission incurred based on units of product sold during the month is an example of a product cost.

Product costs are capitalized as inventory on the balance sheet and period costs are expensed on the income statement.

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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