Question 1

The IMA Standards of Ethical Practice include confidentiality,competence,credibility,and integrity.

Accepted Answer

A) True 
 B)False

Question 2

Royal,Inc.purchases each unit of product X for $100 and can sell it in the market for $135.The price of the product for Royal would be $100.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following represents the combined sum of direct materials and direct labor?

Accepted Answer

A) conversion costs 
B) period costs 
C) prime costs 
D) fixed costs 
A) conversion costs 
B) period costs 
C) prime costs 
D) fixed costs

Question 4

How does a manufacturing company calculate unit product cost? Why do managers need to know the unit product cost?

Accepted Answer

Unit product cost is calculated by divid

Question 5

Define indirect labor and give two examples of indirect labor for a manufacturing company.

Accepted Answer

Indirect labor are labor costs for activ

Question 6

Unit cost per service is calculated by dividing total costs by the total number of services provided.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following describes the cost of goods manufactured?

Accepted Answer

A) the cost of the goods that were sold during the period 
B) the total cost of all goods that were completed,or partially completed during the period 
C) the cost of those goods that were completed during the period 
D) the total costs in inventory at the end of the period 
A) the cost of the goods that were sold during the period 
B) the total cost of all goods that were completed,or partially completed during the period 
C) the cost of those goods that were completed during the period 
D) the total costs in inventory at the end of the period

Question 8

Which of the following is the primary focus of financial accounting?

Accepted Answer

A) providing information that managers need to make operational decisions 
B) providing summarized information on operational results to investors and creditors 
C) providing budgets for future periods 
D) providing highly detailed information on product lines,regions,and divisions 
A) providing information that managers need to make operational decisions 
B) providing summarized information on operational results to investors and creditors 
C) providing budgets for future periods 
D) providing highly detailed information on product lines,regions,and divisions

Question 9

The accountant for Myra Lido deliberately recorded operating expenses as operating assets in order to record a higher net income for the company.As long as the amount of the misstatement was not material,this would not be considered unethical behavior.

Accepted Answer

A) True 
 B)False

Question 10

Service companies sell their time,skills,and knowledge.

Accepted Answer

A) True 
 B)False

Question 11

For decision-making purposes,________ costs are often divided into prime costs and conversion costs.

Accepted Answer

A) fixed costs 
B) product costs 
C) period costs 
D) sunk costs 
A) fixed costs 
B) product costs 
C) period costs 
D) sunk costs

Question 12

Poolside Manufacturing provided the following information for the month ended March 31: $$\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 22,000 \
\hline \text { Beginning Finished Goods Inventory } & 17,000 \
\hline \text { Ending Finished Goods Inventory } & 11,500 \
\hline \text { Cost of Goods Manufactured } & 16,600 \
\hline
\end{array}$$ Compute cost of goods sold.

Accepted Answer

A) $16,600 
B) $11,100 
C) $22,100 
D) $28,100 
A) $16,600 
B) $11,100 
C) $22,100 
D) $28,100

Question 13

Which of the following would be considered a product cost for a manufacturing company?

Accepted Answer

A) salary of the sales manager 
B) salary of the CEO 
C) salaries of the accounting staff 
D) salary of the production manager 
A) salary of the sales manager 
B) salary of the CEO 
C) salaries of the accounting staff 
D) salary of the production manager

Question 14

Which of the following would be considered a direct labor cost for a manufacturing company?

Accepted Answer

A) wages of the assembly line staff 
B) wages of the factory janitors 
C) wages of the factory manager 
D) salaries of the internal auditors 
A) wages of the assembly line staff 
B) wages of the factory janitors 
C) wages of the factory manager 
D) salaries of the internal auditors

Question 15

Service companies do not have product costs,so they often consider all operating expenses as part of their cost of service.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

Accepted Answer

A) Administrative expenses are product costs and are expensed as incurred. 
B) Administrative expenses are period costs and are expensed as incurred. 
C) Administrative expenses are product costs and are expensed when the manufactured product is sold. 
D) Administrative expenses are period costs and are expensed when the manufactured product is sold. 
A) Administrative expenses are product costs and are expensed as incurred. 
B) Administrative expenses are period costs and are expensed as incurred. 
C) Administrative expenses are product costs and are expensed when the manufactured product is sold. 
D) Administrative expenses are period costs and are expensed when the manufactured product is sold.

Question 17

Fire Cat,Inc.selected cost data for the year are shown below: $$\begin{array} { | l | r | } 
\hline \text { Cost of Goods Manufactured } & \$ 145,500 \
\hline \text { Work-in-Process Inventory, Jan. 1 } & 19,500 \
\hline \text { Work-in-Process Inventory, Dec. 31 } & 22,000 \
\hline \text { Direct Materials Used } & 18,600 \
\hline
\end{array}$$ What is the total of manufacturing costs incurred by Fire Cat,Inc.during the year?

Accepted Answer

A) $148,000 
B) $143,000 
C) $22,900 
D) $38,100 
A) $148,000 
B) $143,000 
C) $22,900 
D) $38,100

Question 18

Define indirect cost.

Accepted Answer

An indirect cost is

Question 19

Managerial accounting provides financial statements that report results of operations,financial position,and cash flows both to managers and to external stockholders.

Accepted Answer

A) True 
 B)False

Question 20

Management of a company is accountable to ________ for obeying laws and paying taxes.

Accepted Answer

A) the natural environment 
B) its asset vendors 
C) the securities exchange 
D) the government 
A) the natural environment 
B) its asset vendors 
C) the securities exchange 
D) the government

Exam 16: Introduction to Managerial Accounting

The IMA Standards of Ethical Practice include confidentiality,competence,credibility,and integrity.

Royal,Inc.purchases each unit of product X for $100 and can sell it in the market for $135.The price of the product for Royal would be $100.

Which of the following represents the combined sum of direct materials and direct labor?

How does a manufacturing company calculate unit product cost? Why do managers need to know the unit product cost?

Define indirect labor and give two examples of indirect labor for a manufacturing company.

Unit cost per service is calculated by dividing total costs by the total number of services provided.

Which of the following describes the cost of goods manufactured?

Which of the following is the primary focus of financial accounting?

The accountant for Myra Lido deliberately recorded operating expenses as operating assets in order to record a higher net income for the company.As long as the amount of the misstatement was not material,this would not be considered unethical behavior.

Service companies sell their time,skills,and knowledge.

For decision-making purposes,________ costs are often divided into prime costs and conversion costs.

Poolside Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 22,000 Beginning Finished Goods Inventory 17,000 Ending Finished Goods Inventory 11,500 Cost of Goods Manufactured 16,600 Compute cost of goods sold.

Which of the following would be considered a product cost for a manufacturing company?

Which of the following would be considered a direct labor cost for a manufacturing company?

Service companies do not have product costs,so they often consider all operating expenses as part of their cost of service.

Which of the following correctly describes the accounting for administrative expenses of a manufacturing company?

Fire Cat,Inc.selected cost data for the year are shown below: Cost of Goods Manufactured \ 145,500 Work-in-Process Inventory, Jan. 1 19,500 Work-in-Process Inventory, Dec. 31 22,000 Direct Materials Used 18,600 What is the total of manufacturing costs incurred by Fire Cat,Inc.during the year?

Define indirect cost.

Managerial accounting provides financial statements that report results of operations,financial position,and cash flows both to managers and to external stockholders.

Management of a company is accountable to ________ for obeying laws and paying taxes.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Investments

Current Liabilities and Payroll

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Accounting Information Systems

Filters