Question 1

A manufacturing firm's cost of goods manufactured is equivalent to a merchandising firm's:

Accepted Answer

A) Cost of goods sold. 
B) Cost of goods purchased. 
C) Cost of goods available. 
D) Beginning merchandise inventory. 
E) Ending merchandise inventory. 
A) Cost of goods sold. 
B) Cost of goods purchased. 
C) Cost of goods available. 
D) Beginning merchandise inventory. 
E) Ending merchandise inventory.

Question 2

Marketing managers can use managerial accounting information to decide whether to advertise on social media.

Accepted Answer

A) True 
 B)False

Question 3

The salary paid to the assembly line supervisor would normally be classified as:

Accepted Answer

A) Direct labor. 
B) Indirect labor. 
C) A period cost. 
D) A general cost. 
E) An assembly cost. 
A) Direct labor. 
B) Indirect labor. 
C) A period cost. 
D) A general cost. 
E) An assembly cost.

Question 4

A management concept based on an understanding of the changing wants and needs of customers,and which leads to flexible product designs and production processes,is called:

Accepted Answer

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

Question 5

What is the main difference between the income statement of a manufacturer and that of a merchandiser?

Accepted Answer

In the calculation of cost of goods sold

Question 6

The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.

Accepted Answer

A) True 
 B)False

Question 7

Adopting a lean business model should have no effect on cost in a modern manufacturing environment.

Accepted Answer

A) True 
 B)False

Question 8

________ is the deliberate misuse of the employer's assets for the employee's personal gain.

Accepted Answer

The answer of ________ is the deliberate misuse of the...

Question 9

A schedule of cost of goods manufactured is also known as a:

Accepted Answer

A) Raw materials processed schedule. 
B) Factory supplies used schedule. 
C) Manufacturing statement. 
D) Total finished goods statement. 
E) Cost of goods sold schedule. 
A) Raw materials processed schedule. 
B) Factory supplies used schedule. 
C) Manufacturing statement. 
D) Total finished goods statement. 
E) Cost of goods sold schedule.

Question 10

Jenny,an employee of Toucan Company,used company assets for her own personal gain.This is an example of:

Accepted Answer

A) employee advance. 
B) fraud. 
C) internal control. 
D) ethics. 
E) employment perks. 
A) employee advance. 
B) fraud. 
C) internal control. 
D) ethics. 
E) employment perks.

Question 11

The main goal of the lean business model is the elimination of waste while satisfying the customer and providing a positive return to the company.

Accepted Answer

A) True 
 B)False

Question 12

One of the usual differences between financial and managerial accounting is the timeliness of the information reported.

Accepted Answer

A) True 
 B)False

Question 13

Expenditures incurred in the process of converting raw materials to finished goods,that include direct labor and factory overhead are known as ________.

Accepted Answer

The answer of Expenditures incurred in the process of converting...

Question 14

Which of the following is the correct formula for calculating cost of goods manufactured?

Accepted Answer

A) Direct materials used + direct labor + factory overhead + beginning work in process + ending work in process. 
B) Direct materials used + direct labor + factory overhead + beginning work in process − ending work in process. 
C) Direct materials used + direct labor + factory overhead − beginning work in process + ending work in process. 
D) Direct materials used + direct labor + factory overhead − beginning work in process − ending work in process. 
E) Direct materials used + direct labor − factory overhead + beginning work in process − ending work in process. 
A) Direct materials used + direct labor + factory overhead + beginning work in process + ending work in process. 
B) Direct materials used + direct labor + factory overhead + beginning work in process − ending work in process. 
C) Direct materials used + direct labor + factory overhead − beginning work in process + ending work in process. 
D) Direct materials used + direct labor + factory overhead − beginning work in process − ending work in process. 
E) Direct materials used + direct labor − factory overhead + beginning work in process − ending work in process.

Question 15

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year:   The raw materials used in manufacturing during the year totaled $1,018,000.Raw materials purchased during the year amount to:

Accepted Answer

A) $955,000. 
B) $892,000. 
C) $1,565,000. 
D) $408,000. 
E) $1,081,000. 
A) $955,000. 
B) $892,000. 
C) $1,565,000. 
D) $408,000. 
E) $1,081,000.

Question 16

Just-in-time manufacturing (JIT)is a system that acquires inventory and produces only when needed.

Accepted Answer

A) True 
 B)False

Question 17

Materials a company acquires to use in making products are called:

Accepted Answer

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

Question 18

If the cost of the beginning work in process inventory is $60,000,direct materials cost is $350,000,direct labor cost is $216,000,and overhead cost is $319,000,and the ending work in process inventory is $55,000,calculate the cost of goods manufactured.

Accepted Answer

A) $1,000,000. 
B) $571,000. 
C) $885,000. 
D) $890,000. 
E) $945,000. 
A) $1,000,000. 
B) $571,000. 
C) $885,000. 
D) $890,000. 
E) $945,000.

Question 19

Which of the following is the correct formula for calculating days' sales in raw materials inventory 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 inventory/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 inventory/Raw materials used × 365. 
E) Raw materials used/Beginning raw materials inventory × 365.

Question 20

Information for the Deuce Manufacturing Company follows.Compute the cost of goods manufactured for this company.

Accepted Answer

The answer of Information for the Deuce Manufacturing Company follows.Compute...

Exam 14: Managerial Accounting Concepts and Principles

A manufacturing firm's cost of goods manufactured is equivalent to a merchandising firm's:

Marketing managers can use managerial accounting information to decide whether to advertise on social media.

The salary paid to the assembly line supervisor would normally be classified as:

A management concept based on an understanding of the changing wants and needs of customers,and which leads to flexible product designs and production processes,is called:

What is the main difference between the income statement of a manufacturer and that of a merchandiser?

The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.

Adopting a lean business model should have no effect on cost in a modern manufacturing environment.

________ is the deliberate misuse of the employer's assets for the employee's personal gain.

A schedule of cost of goods manufactured is also known as a:

Jenny,an employee of Toucan Company,used company assets for her own personal gain.This is an example of:

The main goal of the lean business model is the elimination of waste while satisfying the customer and providing a positive return to the company.

One of the usual differences between financial and managerial accounting is the timeliness of the information reported.

Expenditures incurred in the process of converting raw materials to finished goods,that include direct labor and factory overhead are known as ________.

Which of the following is the correct formula for calculating cost of goods manufactured?

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: The raw materials used in manufacturing during the year totaled $1,018,000.Raw materials purchased during the year amount to:

Just-in-time manufacturing (JIT)is a system that acquires inventory and produces only when needed.

Materials a company acquires to use in making products are called:

If the cost of the beginning work in process inventory is $60,000,direct materials cost is $350,000,direct labor cost is $216,000,and overhead cost is $319,000,and the ending work in process inventory is $55,000,calculate the cost of goods manufactured.

Which of the following is the correct formula for calculating days' sales in raw materials inventory for a manufacturer?

Information for the Deuce Manufacturing Company follows.Compute the cost of goods manufactured for this company.

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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