Question 1

Selling and administrative expenses are normally period costs.

Accepted Answer

A) True 
 B)False

Question 2

Just-in-time manufacturing is a system that acquires inventory and produces product only when needed for an order.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following items appears only in a manufacturing company's financial statements?

Accepted Answer

A) Cost of goods sold. 
B) Cost of goods manufactured. 
C) Goods available for sale. 
D) Gross profit. 
E) Net income. 
A) Cost of goods sold. 
B) Cost of goods manufactured. 
C) Goods available for sale. 
D) Gross profit. 
E) Net income.

Question 4

Using the information below:
 
-Calculate net income 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 5

What does the days' sales in raw materials inventory ratio reveal?

Accepted Answer

Days' sales in raw materials i

Question 6

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it,and estimates and projections are acceptable.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is the correct formula for calculating raw materials inventory turnover for a manufacturer?

Accepted Answer

A) Raw materials purchased/Average raw materials inventory. 
B) Average raw materials inventory/Raw materials used. 
C) Raw materials used/Average raw materials inventory. 
D) Ending raw materials/Raw materials used × 365. 
E) Raw materials used/Beginning raw materials inventory × 365. 
A) Raw materials purchased/Average raw materials inventory. 
B) Average raw materials inventory/Raw materials used. 
C) Raw materials used/Average raw materials inventory. 
D) Ending raw materials/Raw materials used × 365. 
E) Raw materials used/Beginning raw materials inventory × 365.

Question 8

________ reveals how much raw materials inventory is available in terms of the number of days' sales.

Accepted Answer

Days' sale

Question 9

Romeo Corporation reports the following for the year:  
The cost of goods manufactured for the year is:

Accepted Answer

A) $21,400. 
B) $11,000. 
C) $15,000. 
D) $17,400. 
E) $10,200. 
A) $21,400. 
B) $11,000. 
C) $15,000. 
D) $17,400. 
E) $10,200.

Question 10

Control is the process of monitoring planning decisions and evaluating an organization's activities and employees.

Accepted Answer

A) True 
 B)False

Question 11

Richards Company manufactures a single product.All raw materials used are traceable to specific units of product.Current information for the 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 12

Information for Jersey Metalworks as of December 31 follows.Prepare (a)the company's schedule of cost of goods manufactured for the year ended December 31; (b)prepare the company's income statement that reports separate categories for selling and general and administrative expenses.

Accepted Answer

The answer of Information for Jersey Metalworks as of December...

Question 13

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

Accepted Answer

A) Beginning Finished Goods Inventory. 
B) Cost of Goods Manufactured. 
C) Total Finished Goods available for sale. 
D) Ending Work in Process Inventory. 
E) Cost of Goods Sold. 
A) Beginning Finished Goods Inventory. 
B) Cost of Goods Manufactured. 
C) Total Finished Goods available for sale. 
D) Ending Work in Process Inventory. 
E) Cost of Goods Sold.

Question 14

Which of the following is an indirect cost of manufacturing scooters?

Accepted Answer

A) Scooter assembly wages. 
B) Wheels. 
C) Supervisor salary. 
D) Brakes 
E) Assembly worker employee benefits. 
A) Scooter assembly wages. 
B) Wheels. 
C) Supervisor salary. 
D) Brakes 
E) Assembly worker employee benefits.

Question 15

Period costs for a manufacturing company flow directly to:

Accepted Answer

A) The income statement as an expense. 
B) Factory overhead. 
C) The balance sheet as inventory. 
D) Cost of goods sold on the income statement. 
E) The current schedule of cost of goods manufactured. 
A) The income statement as an expense. 
B) Factory overhead. 
C) The balance sheet as inventory. 
D) Cost of goods sold on the income statement. 
E) The current schedule of cost of goods manufactured.

Question 16

Goals of a lean business model include all of the following except:

Accepted Answer

A) Eliminate waste. 
B) Better inventory control. 
C) Continuous improvement. 
D) Consistent production levels. 
E) Fewer product defects. 
A) Eliminate waste. 
B) Better inventory control. 
C) Continuous improvement. 
D) Consistent production levels. 
E) Fewer product defects.

Question 17

A fixed cost:

Accepted Answer

A) Requires the future outlay of cash and is relevant for future decision making. 
B) Does not change with changes in the volume of activity within the relevant range. 
C) Is directly traceable to a cost object. 
D) Changes with changes in the volume of activity within the relevant range. 
E) Is irrelevant for managers' decision making. 
A) Requires the future outlay of cash and is relevant for future decision making. 
B) Does not change with changes in the volume of activity within the relevant range. 
C) Is directly traceable to a cost object. 
D) Changes with changes in the volume of activity within the relevant range. 
E) Is irrelevant for managers' decision making.

Question 18

Managerial accounting provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Accepted Answer

A) True 
 B)False

Question 19

Manufacturing costs other than direct materials and direct labor,and are not readily traceable to specific units or batches of production are called:

Accepted Answer

A) Administrative expenses. 
B) Nonmanufacturing costs. 
C) Prime costs. 
D) Factory overhead. 
E) Preproduction costs. 
A) Administrative expenses. 
B) Nonmanufacturing costs. 
C) Prime costs. 
D) Factory overhead. 
E) Preproduction costs.

Question 20

Information for Eastman Industries is presented below.Compute the cost of goods manufactured.

Accepted Answer

The answer of Information for Eastman Industries is presented below.Compute...

Exam 14: Managerial Accounting Concepts and Principles

Selling and administrative expenses are normally period costs.

Just-in-time manufacturing is a system that acquires inventory and produces product only when needed for an order.

Which of the following items appears only in a manufacturing company's financial statements?

Using the information below: -Calculate net income for the period:

What does the days' sales in raw materials inventory ratio reveal?

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it,and estimates and projections are acceptable.

Which of the following is the correct formula for calculating raw materials inventory turnover for a manufacturer?

________ reveals how much raw materials inventory is available in terms of the number of days' sales.

Romeo Corporation reports the following for the year: The cost of goods manufactured for the year is:

Control is the process of monitoring planning decisions and evaluating an organization's activities and employees.

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

Information for Jersey Metalworks as of December 31 follows.Prepare (a)the company's schedule of cost of goods manufactured for the year ended December 31; (b)prepare the company's income statement that reports separate categories for selling and general and administrative expenses.

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

Which of the following is an indirect cost of manufacturing scooters?

Period costs for a manufacturing company flow directly to:

Goals of a lean business model include all of the following except:

A fixed cost:

Managerial accounting provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Manufacturing costs other than direct materials and direct labor,and are not readily traceable to specific units or batches of production are called:

Information for Eastman Industries is presented below.Compute the cost of goods manufactured.

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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