Question 1

The cost of workers who assist in,or supervise,the manufacturing process,not linked to specific units of product is called:

Accepted Answer

A) Unspecified labor. 
B) Direct labor. 
C) Indirect labor. 
D) Basic labor. 
E) Joint labor. 
A) Unspecified labor. 
B) Direct labor. 
C) Indirect labor. 
D) Basic labor. 
E) Joint labor.

Question 2

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

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 3

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 4

An employee overstates his reimbursable expenses in one period in order to receive needed additional cash.Since he intends to reduce his expenses the next period by the current overstatement,this act is not considered fraudulent.

Accepted Answer

A) True 
 B)False

Question 5

The cost of partially completed products is included in the balance of the Work in Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 6

Prime costs consist of direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Question 7

A company's prime costs total $3,000,000 and its conversion costs total $7,000,000.If direct materials are $1,000,000 and factory overhead is $5,000,000,then direct labor is:

Accepted Answer

A) $4,000,000. 
B) $14,000,000. 
C) $2,000,000. 
D) $1,000,000. 
E) $3,000,000. 
A) $4,000,000. 
B) $14,000,000. 
C) $2,000,000. 
D) $1,000,000. 
E) $3,000,000.

Question 8

Products that are in the process of being manufactured but are not yet complete are called:

Accepted Answer

A) Raw materials inventory. 
B) Conversion costs. 
C) Cost of goods sold. 
D) Work in process inventory. 
E) Finished goods inventory. 
A) Raw materials inventory. 
B) Conversion costs. 
C) Cost of goods sold. 
D) Work in process inventory. 
E) Finished goods inventory.

Question 9

Which of the following costs would not be classified as factory overhead?

Accepted Answer

A) Property taxes on maintenance machinery. 
B) Insurance on factory building. 
C) Wages of the factory janitor. 
D) Rubber for the soles of shoes produced. 
E) Small tools used in production. 
A) Property taxes on maintenance machinery. 
B) Insurance on factory building. 
C) Wages of the factory janitor. 
D) Rubber for the soles of shoes produced. 
E) Small tools used in production.

Question 10

An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:

Accepted Answer

A) Continuous improvement. 
B) Customer orientation. 
C) Just-in-time manufacturing. 
D) Theory of constraints. 
E) Total quality management. 
A) Continuous improvement. 
B) Customer orientation. 
C) Just-in-time manufacturing. 
D) Theory of constraints. 
E) Total quality management.

Question 11

Total fixed costs change in proportion to changes in the volume of activity.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Straight-line depreciation,rent,and manager salaries are examples of variable costs.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following items is not a management concept that was created to improve company performance?

Accepted Answer

A) Just-in-time manufacturing. 
B) GAAP constraints and guidelines. 
C) Total quality management. 
D) Continuous improvement. 
E) Customer orientation. 
A) Just-in-time manufacturing. 
B) GAAP constraints and guidelines. 
C) Total quality management. 
D) Continuous improvement. 
E) Customer orientation.

Question 15

Use the cost information below for Sundar Company to determine the total manufacturing costs added during the current year:

Accepted Answer

A) $98,600. 
B) $43,500. 
C) $98,000. 
D) $42,900. 
E) $79,000. 
A) $98,600. 
B) $43,500. 
C) $98,000. 
D) $42,900. 
E) $79,000.

Question 16

Using the information below:
 
-Calculate gross profit for the period:

Accepted Answer

A) $774,000. 
B) $769,000. 
C) $530,000. 
D) $535,000. 
E) $448,000. 
A) $774,000. 
B) $769,000. 
C) $530,000. 
D) $535,000. 
E) $448,000.

Question 17

Raw materials inventory should not include indirect materials.

Accepted Answer

A) True 
 B)False

Question 18

A manufacturer's inventory that is not completely finished is called ________ .

Accepted Answer

The answer of A manufacturer's inventory that is not completely...

Question 19

Define and contrast period costs and product costs.How are they reported in the financial statements of a manufacturing company?

Accepted Answer

Period costs are the expenditures that a

Question 20

Expenditures directly associated with the manufacture of finished goods that include direct materials and direct labor,are ________ costs.

Accepted Answer

The answer of Expenditures directly associated with the manufacture of...

Exam 14: Managerial Accounting Concepts and Principles

The cost of workers who assist in,or supervise,the manufacturing process,not linked to specific units of product is called:

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

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

An employee overstates his reimbursable expenses in one period in order to receive needed additional cash.Since he intends to reduce his expenses the next period by the current overstatement,this act is not considered fraudulent.

The cost of partially completed products is included in the balance of the Work in Process Inventory account.

Prime costs consist of direct materials and direct labor.

A company's prime costs total $3,000,000 and its conversion costs total $7,000,000.If direct materials are $1,000,000 and factory overhead is $5,000,000,then direct labor is:

Products that are in the process of being manufactured but are not yet complete are called:

Which of the following costs would not be classified as factory overhead?

An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:

Total fixed costs change in proportion to changes in the volume of activity.

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

Straight-line depreciation,rent,and manager salaries are examples of variable costs.

Which of the following items is not a management concept that was created to improve company performance?

Use the cost information below for Sundar Company to determine the total manufacturing costs added during the current year:

Using the information below: -Calculate gross profit for the period:

Raw materials inventory should not include indirect materials.

A manufacturer's inventory that is not completely finished is called ________ .

Define and contrast period costs and product costs.How are they reported in the financial statements of a manufacturing company?

Expenditures directly associated with the manufacture of finished goods that include direct materials and direct labor,are ________ costs.

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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