Question 1

On the income statement of a manufacturing company,what replaces purchases in the cost of goods sold section of a retail company?

Accepted Answer

A)  finished goods 
B)  cost of merchandise available 
C)  cost of goods manufactured 
D)  work in process 
A)  finished goods 
B)  cost of merchandise available 
C)  cost of goods manufactured 
D)  work in process

Question 2

Period costs are operating costs that are expensed in the period in which the goods are sold.

Accepted Answer

A) True 
 B)False

Question 3

All of the following would be reported on the balance sheet as a current asset except

Accepted Answer

A)  factory overhead 
B)  materials inventory 
C)  finished goods inventory 
D)  work in process inventory 
A)  factory overhead 
B)  materials inventory 
C)  finished goods inventory 
D)  work in process inventory

Question 4

The Zoe Corporation has the following information for the month March.Determine the (a)cost of goods manufactured,and (b)cost of goods sold.

Accepted Answer

The answer of The Zoe Corporation has the following information...

Question 5

Which of the following will not be found on the balance sheet of a manufacturing company?

Accepted Answer

A)  cost of goods sold 
B)  materials 
C)  work in process 
D)  finished goods 
A)  cost of goods sold 
B)  materials 
C)  work in process 
D)  finished goods

Question 6

Product costs include direct labor and advertising expense.

Accepted Answer

A) True 
 B)False

Question 7

Sustainability information only benefits internal financial statement users in their decision making.

Accepted Answer

A) True 
 B)False

Question 8

A staff department has no direct authority over a line department.

Accepted Answer

A) True 
 B)False

Question 9

Prime costs are the combination of direct materials and direct labor costs.

Accepted Answer

A) True 
 B)False

Question 10

Bartel Corporation produces bar stools for restaurants.For each of the following,indicate whether the cost would typically be considered direct or indirect cost for the cost object given.
-Sprinkles for decoration (indirect material)

Accepted Answer

A) Direct 
B) Indirect 
A) Direct 
B) Indirect

Question 11

For an automotive repair shop,the wages of mechanics would be classified as direct labor cost.

Accepted Answer

A) True 
 B)False

Question 12

In order to be useful to managers,managerial accounting reports should possess all of the following characteristics except

Accepted Answer

A)  provide objective measures of past operations and subjective estimates about future decisions 
B)  be prepared in accordance with generally accepted accounting principles 
C)  be provided at any time management needs information 
D)  be prepared to report information for any unit of the business to support decision making 
A)  provide objective measures of past operations and subjective estimates about future decisions 
B)  be prepared in accordance with generally accepted accounting principles 
C)  be provided at any time management needs information 
D)  be prepared to report information for any unit of the business to support decision making

Question 13

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as

Accepted Answer

A)  factory overhead cost 
B)  direct labor cost 
C)  miscellaneous costs 
D)  direct materials cost 
A)  factory overhead cost 
B)  direct labor cost 
C)  miscellaneous costs 
D)  direct materials cost

Question 14

Indirect costs can be specifically traced to a cost object.

Accepted Answer

A) True 
 B)False

Question 15

The Darwin Company reports the following information: ​
​
  Period costs are

Accepted Answer

A)  $24,500 
B)  $30,300 
C)  $29,200 
D)  $35,000 
A)  $24,500 
B)  $30,300 
C)  $29,200 
D)  $35,000

Question 16

Watson Company has the following data:
​
   Calculate the amount of direct materials used.

Accepted Answer

Direct materials use

Question 17

The primary goal of managerial accounting is to provide information to

Accepted Answer

A)  investors 
B)  creditors 
C)  management 
D)  external auditors 
A)  investors 
B)  creditors 
C)  management 
D)  external auditors

Question 18

Which of the following accounts will be found on the income statement?

Accepted Answer

A)  Inventory 
B)  Work in Process 
C)  Finished Goods 
D)  Cost of Goods Sold 
A)  Inventory 
B)  Work in Process 
C)  Finished Goods 
D)  Cost of Goods Sold

Question 19

Jensen Company's period costs are

Accepted Answer

A)  $345,000 
B)  $250,000 
C)  $400,000 
D)  $175,000 
A)  $345,000 
B)  $250,000 
C)  $400,000 
D)  $175,000

Question 20

Smith Company reports the following information: ​
​
  Factory overhead is 75% of the cost of direct labor.Work in process inventory on December 31 is

Accepted Answer

A)  $16,250 
B)  $8,500 
C)  $18,750 
D)  $13,500 
A)  $16,250 
B)  $8,500 
C)  $18,750 
D)  $13,500

Exam 15: Introduction to Managerial Accounting

On the income statement of a manufacturing company,what replaces purchases in the cost of goods sold section of a retail company?

Period costs are operating costs that are expensed in the period in which the goods are sold.

All of the following would be reported on the balance sheet as a current asset except

The Zoe Corporation has the following information for the month March.Determine the (a)cost of goods manufactured,and (b)cost of goods sold.

Which of the following will not be found on the balance sheet of a manufacturing company?

Product costs include direct labor and advertising expense.

Sustainability information only benefits internal financial statement users in their decision making.

A staff department has no direct authority over a line department.

Prime costs are the combination of direct materials and direct labor costs.

Bartel Corporation produces bar stools for restaurants.For each of the following,indicate whether the cost would typically be considered direct or indirect cost for the cost object given. -Sprinkles for decoration (indirect material)

For an automotive repair shop,the wages of mechanics would be classified as direct labor cost.

In order to be useful to managers,managerial accounting reports should possess all of the following characteristics except

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as

Indirect costs can be specifically traced to a cost object.

The Darwin Company reports the following information: ​ ​ Period costs are

Watson Company has the following data: ​ Calculate the amount of direct materials used.

The primary goal of managerial accounting is to provide information to

Which of the following accounts will be found on the income statement?

Jensen Company's period costs are

Smith Company reports the following information: ​ ​ Factory overhead is 75% of the cost of direct labor.Work in process inventory on December 31 is

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 Darwin Company reports the following information: Period costs are

Watson Company has the following data: Calculate the amount of direct materials used.

Smith Company reports the following information: Factory overhead is 75% of the cost of direct labor.Work in process inventory on December 31 is