Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Conversion costs are

Accepted Answer

A)  direct materials and direct labor 
B)  direct materials and factory overhead 
C)  factory overhead and direct labor 
D)  direct materials and indirect labor 
A)  direct materials and direct labor 
B)  direct materials and factory overhead 
C)  factory overhead and direct labor 
D)  direct materials and indirect labor

Question 3

Cost of goods manufactured is equal to

Accepted Answer

A)  total manufacturing costs plus ending materials inventory less beginning materials inventory 
B)  cost of goods sold plus beginning work in process inventory less ending work in process inventory 
C)  total manufacturing costs plus ending work in process inventory less beginning work in process inventory 
D)  total manufacturing costs plus beginning work in process inventory less ending work in process inventory 
A)  total manufacturing costs plus ending materials inventory less beginning materials inventory 
B)  cost of goods sold plus beginning work in process inventory less ending work in process inventory 
C)  total manufacturing costs plus ending work in process inventory less beginning work in process inventory 
D)  total manufacturing costs plus beginning work in process inventory less ending work in process inventory

Question 4

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

Accepted Answer

A)  period costs and expensed when incurred 
B)  product costs and expensed when the goods are sold 
C)  product costs and expensed when incurred 
D)  period costs and expensed when the goods are sold 
A)  period costs and expensed when incurred 
B)  product costs and expensed when the goods are sold 
C)  product costs and expensed when incurred 
D)  period costs and expensed when the goods are sold

Question 5

An example of a sustainable business practice in transportation is crop rotation.

Accepted Answer

A) True 
 B)False

Question 6

Conversion costs consist of product costs and period costs.

Accepted Answer

A) True 
 B)False

Question 7

Magnus Industries has the following data:
​
   Calculate the cost of raw materials used.

Accepted Answer

Raw Materials Used =

Question 8

Cost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000.Work in process inventory during the year decreased by 60%.Total manufacturing costs incurred are

Accepted Answer

A)  $190,000 
B)  $165,000 
C)  $290,000 
D)  $315,000 
A)  $190,000 
B)  $165,000 
C)  $290,000 
D)  $315,000

Question 9

Which of the following is not a prime cost?

Accepted Answer

A)  plant janitor's wages 
B)  direct labor wages 
C)  machine operator wages 
D)  assembly line wages 
A)  plant janitor's wages 
B)  direct labor wages 
C)  machine operator wages 
D)  assembly line wages

Question 10

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

Accepted Answer

A) True 
 B)False

Question 11

Managers do not need to consider the social and environmental settings in which a business operates.

Accepted Answer

A) True 
 B)False

Question 12

Managerial accounting reports are designed to meet the specific needs of a company's management.

Accepted Answer

A) True 
 B)False

Question 13

In most business organizations,the chief management accountant is called the controller.

Accepted Answer

A) True 
 B)False

Question 14

Differentiate between period and product costs,including examples of each type of cost.​

Accepted Answer

Period costs consist of selling and admi

Question 15

The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 16

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Accepted Answer

A) True 
 B)False

Question 17

All of the following are examples of indirect labor except

Accepted Answer

A)  maintenance personnel 
B)  janitorial personnel 
C)  machine operators 
D)  plant managers 
A)  maintenance personnel 
B)  janitorial personnel 
C)  machine operators 
D)  plant managers

Question 18

Factory overhead includes all manufacturing costs except direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Question 19

A company sells goods for $150,000 that cost $54,000 to manufacture.Which statement is true?

Accepted Answer

A)  The company will recognize sales on the balance sheet of $150,000. 
B)  The company will recognize $96,000 gross profit on the balance sheet. 
C)  The company will decrease finished goods by $54,000. 
D)  The company will increase finished goods by $54,000. 
A)  The company will recognize sales on the balance sheet of $150,000. 
B)  The company will recognize $96,000 gross profit on the balance sheet. 
C)  The company will decrease finished goods by $54,000. 
D)  The company will increase finished goods by $54,000.

Question 20

Indirect labor would be included in factory overhead.

Accepted Answer

A) True 
 B)False

Exam 15: Introduction to Managerial Accounting

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

Conversion costs are

Cost of goods manufactured is equal to

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

An example of a sustainable business practice in transportation is crop rotation.

Conversion costs consist of product costs and period costs.

Magnus Industries has the following data: ​ Calculate the cost of raw materials used.

Cost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000.Work in process inventory during the year decreased by 60%.Total manufacturing costs incurred are

Which of the following is not a prime cost?

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

Managers do not need to consider the social and environmental settings in which a business operates.

Managerial accounting reports are designed to meet the specific needs of a company's management.

In most business organizations,the chief management accountant is called the controller.

Differentiate between period and product costs,including examples of each type of cost.​

The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

All of the following are examples of indirect labor except

Factory overhead includes all manufacturing costs except direct materials and direct labor.

A company sells goods for $150,000 that cost $54,000 to manufacture.Which statement is true?

Indirect labor would be included in factory overhead.

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

Magnus Industries has the following data: Calculate the cost of raw materials used.

Differentiate between period and product costs,including examples of each type of cost.