Question 1

Conversion cost is the combination of direct labor cost and factory overhead cost.

Accepted Answer

A) True 
 B)False  True

Question 2

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as

Accepted Answer

A)  factory overhead cost 
B)  miscellaneous expense 
C)  product costs 
D)  period cost 
A)  factory overhead cost 
B)  miscellaneous expense 
C)  product costs 
D)  period cost A

Question 3

Managerial accountants could prepare all of the following reports except

Accepted Answer

A)  a performance report identifying amounts of scrap 
B)  a control report comparing direct material usage over time 
C)  a sales report targeting monthly sales and potential bonuses 
D)  an annual report for external regulators such as the SEC 
A)  a performance report identifying amounts of scrap 
B)  a control report comparing direct material usage over time 
C)  a sales report targeting monthly sales and potential bonuses 
D)  an annual report for external regulators such as the SEC D

Question 4

The Putney Company reports the following information:
​
​
   Compute:
a)product costs
b)period costs

Accepted Answer

a)product costs = $7,300 + $4,

Question 5

Rent expense on a factory building would be treated as a(n)

Accepted Answer

A)  period cost 
B)  product cost 
C)  indirect cost 
D)  direct material cost 
A)  period cost 
B)  product cost 
C)  indirect cost 
D)  direct material cost

Question 6

Managerial accounting information includes both historical and estimated data.

Accepted Answer

A) True 
 B)False

Question 7

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 8

Period (nonmanufacturing)costs are classified into two categories: selling and administrative.

Accepted Answer

A) True 
 B)False

Question 9

The cost of a manufactured product generally consists of which of the following costs?

Accepted Answer

A)  direct materials cost and factory overhead cost only 
B)  direct labor cost and factory overhead cost only 
C)  direct labor cost,direct materials cost,and factory overhead cost 
D)  direct materials cost and direct labor cost only 
A)  direct materials cost and factory overhead cost only 
B)  direct labor cost and factory overhead cost only 
C)  direct labor cost,direct materials cost,and factory overhead cost 
D)  direct materials cost and direct labor cost only

Question 10

Sustainability information can provide important feedback to guide a company's strategic and operational decision making.

Accepted Answer

A) True 
 B)False

Question 11

Jensen Company's product costs are

Accepted Answer

A)  $995,000 
B)  $920,000 
C)  $825,000 
D)  $770,000 
A)  $995,000 
B)  $920,000 
C)  $825,000 
D)  $770,000

Question 12

Conversion costs are the combination of direct labor,direct material,and factory overhead costs.

Accepted Answer

A) True 
 B)False

Question 13

Davis Manufacturing Company had the following data:
​
​
   Collections on account were $625,000.
Cost of goods sold was 68% of sales.
Direct materials purchased amounted to $90,000.
Factory overhead was 300% of the cost of direct labor.
Compute:
(a)Sales revenue (all sales were on account)
(b)Cost of goods sold
(c)Cost of goods manufactured
(d)Direct labor used
(e)Direct materials incurred
(f)Factory overhead incurred

Accepted Answer

(a)Sales revenue = $33,000 + $625,000 -

Question 14

What is decision making? Who is responsible for decision making in a managerial situation?​

Accepted Answer

Inherent in each management process (pla

Question 15

Differentiate between:
a)direct materials versus indirect materials
b)direct labor versus indirect labor

Accepted Answer

a)Direct materials must become a physica

Question 16

For each of the following,indicate whether the cost would typically be considered product or period cost for the cost object given.
-Delivery costs to take the bicycles to stores

Accepted Answer

A) Product 
B) Period 
A) Product 
B) Period

Question 17

Beginning work in process is equal to

Accepted Answer

A)  cost of goods manufactured plus ending work in process minus manufacturing costs incurred during the current period 
B)  cost of goods manufactured minus ending work in process plus manufacturing costs incurred during the current period 
C)  ending work in process plus manufacturing costs incurred during the current period 
D)  manufacturing costs incurred during the current period minus ending work in process 
A)  cost of goods manufactured plus ending work in process minus manufacturing costs incurred during the current period 
B)  cost of goods manufactured minus ending work in process plus manufacturing costs incurred during the current period 
C)  ending work in process plus manufacturing costs incurred during the current period 
D)  manufacturing costs incurred during the current period minus ending work in process

Question 18

A cost can be a payment of cash for the purpose of generating revenues.

Accepted Answer

A) True 
 B)False

Question 19

Sustainability is the practice of operating a business to maximize profits while attempting to preserve the environment,economy,and needs of future generations.

Accepted Answer

A) True 
 B)False

Question 20

For each of the following,indicate whether the cost would typically be considered product or period cost for the cost object given.
-Electricity costs to run the factory

Accepted Answer

A) Product 
B) Period 
A) Product 
B) Period

Exam 15: Introduction to Managerial Accounting

Conversion cost is the combination of direct labor cost and factory overhead cost.

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as

Managerial accountants could prepare all of the following reports except

The Putney Company reports the following information: ​ ​ Compute: a)product costs b)period costs

Rent expense on a factory building would be treated as a(n)

Managerial accounting information includes both historical and estimated data.

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Period (nonmanufacturing)costs are classified into two categories: selling and administrative.

The cost of a manufactured product generally consists of which of the following costs?

Sustainability information can provide important feedback to guide a company's strategic and operational decision making.

Jensen Company's product costs are

Conversion costs are the combination of direct labor,direct material,and factory overhead costs.

What is decision making? Who is responsible for decision making in a managerial situation?​

Differentiate between: a)direct materials versus indirect materials b)direct labor versus indirect labor

For each of the following,indicate whether the cost would typically be considered product or period cost for the cost object given. -Delivery costs to take the bicycles to stores

Beginning work in process is equal to

A cost can be a payment of cash for the purpose of generating revenues.

Sustainability is the practice of operating a business to maximize profits while attempting to preserve the environment,economy,and needs of future generations.

For each of the following,indicate whether the cost would typically be considered product or period cost for the cost object given. -Electricity costs to run the factory

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

The Putney Company reports the following information: Compute: a)product costs b)period costs

What is decision making? Who is responsible for decision making in a managerial situation?