Question 1

An Enterprise Resource Planning system (ERP)________.

Accepted Answer

A) is a cost management system in which a company produces products just in time to satisfy needs 
B) requires the implementation of Total Quality Management 
C) integrates all worldwide functions,departments,and data of a company into a single system 
D) cannot be implemented in service companies 
A) is a cost management system in which a company produces products just in time to satisfy needs 
B) requires the implementation of Total Quality Management 
C) integrates all worldwide functions,departments,and data of a company into a single system 
D) cannot be implemented in service companies

Question 2

Merchandising companies,like service companies,do not have a Cost of Goods Sold account.

Accepted Answer

A) True 
 B)False

Question 3

Evanston Manufacturing,Inc.reported the following information for the year:
 
What was the unit product cost? (Round your answer to the nearest cent. )

Accepted Answer

A) $4.32 
B) $0.86 
C) $0.85 
D) $1.75 
A) $4.32 
B) $0.86 
C) $0.85 
D) $1.75

Question 4

Which of the following correctly describes the accounting for indirect labor costs?

Accepted Answer

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

Question 5

Damsel,Inc.is a large manufacturer of auto tires.Damsel has provided the following information:
 
Calculate the amount of ending Finished Goods Inventory reported on Damsel's balance sheet.

Accepted Answer

A) $3,000 
B) $70,500 
C) $37,500 
D) $19,000 
A) $3,000 
B) $70,500 
C) $37,500 
D) $19,000

Question 6

Star Health,Inc.is a fitness center in Oklahoma City.In October,the company earned
$550,000 in revenues and incurred the following operating costs from 300 customers:
 
How much is the unit cost per customer? (Round your answer to the nearest cent. )

Accepted Answer

A) $93.00 
B) $18.17 
C) $1,833.33 
D) $134.50 
A) $93.00 
B) $18.17 
C) $1,833.33 
D) $134.50

Question 7

Bentley Manufacturing,Inc.provided the following information for the year:
 
The inventory account balances as of January 1 are given below.
 
What is the ending balance in the Work-in-Process Inventory account?

Accepted Answer

A) $13,030 
B) $1,100 
C) $49,500 
D) $44,900 
A) $13,030 
B) $1,100 
C) $49,500 
D) $44,900

Question 8

Direct costs and indirect costs can be easily traced directly to a cost object.

Accepted Answer

A) True 
 B)False

Question 9

How does a service company calculate unit cost per service? Why do managers need to know the unit cost per service?

Accepted Answer

Unit cost per service is calcu

Question 10

The IMA standards of ethical practice require managerial accountants to maintain their professional competence.

Accepted Answer

A) True 
 B)False

Question 11

In a manufacturing company,the salary of the sales staff is an example of period cost.

Accepted Answer

A) True 
 B)False

Question 12

The wages of manufacturing plant janitors are considered to be non-manufacturing overhead costs as these costs are not directly related to the manufacturing process.

Accepted Answer

A) True 
 B)False

Question 13

A corporation used $35,000 of direct materials and incurred $73,000 in direct labor cost,and $112,500 in manufacturing overhead costs during the period.What is the cost of goods manufactured if the beginning and ending Work-in-Process Inventories were $28,000 and $21,500,respectively?

Accepted Answer

A) $248,500 
B) $227,000 
C) $214,000 
D) $220,500 
A) $248,500 
B) $227,000 
C) $214,000 
D) $220,500

Question 14

Repair and maintenance costs of vehicles used to deliver products to the customers are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 15

Given the following information,determine the cost of goods manufactured.

Accepted Answer

A) $387,000 
B) $500,000 
C) $279,000 
D) $189,500 
A) $387,000 
B) $500,000 
C) $279,000 
D) $189,500

Question 16

Which of the following will be included in manufacturing overhead costs?

Accepted Answer

A) indirect labor and indirect materials used 
B) salaries of salesmen 
C) direct materials and direct labor 
D) delivery costs to ship goods to customers 
A) indirect labor and indirect materials used 
B) salaries of salesmen 
C) direct materials and direct labor 
D) delivery costs to ship goods to customers

Question 17

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 18

Describe the flow of product costs for a manufacturer.

Accepted Answer

The flow of product costs for a manufact

Question 19

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

Accepted Answer

A) indirect materials 
B) factory utilities 
C) direct labor 
D) sales salaries 
A) indirect materials 
B) factory utilities 
C) direct labor 
D) sales salaries

Question 20

Which of the following statements is true of managerial accounting?

Accepted Answer

A) The external stakeholders of a company are the primary users of managerial accounting. 
B) Managerial accounting information is used to help managers plan and control their operations. 
C) An external audit by an independent CPA is required for managerial accounting information. 
D) Managerial accounting information must comply with Generally Accepted Accounting Principles. 
A) The external stakeholders of a company are the primary users of managerial accounting. 
B) Managerial accounting information is used to help managers plan and control their operations. 
C) An external audit by an independent CPA is required for managerial accounting information. 
D) Managerial accounting information must comply with Generally Accepted Accounting Principles.

Exam 18: Introduction to Managerial Accounting

An Enterprise Resource Planning system (ERP)________.

Merchandising companies,like service companies,do not have a Cost of Goods Sold account.

Evanston Manufacturing,Inc.reported the following information for the year: What was the unit product cost? (Round your answer to the nearest cent. )

Which of the following correctly describes the accounting for indirect labor costs?

Damsel,Inc.is a large manufacturer of auto tires.Damsel has provided the following information: Calculate the amount of ending Finished Goods Inventory reported on Damsel's balance sheet.

Star Health,Inc.is a fitness center in Oklahoma City.In October,the company earned $550,000 in revenues and incurred the following operating costs from 300 customers: How much is the unit cost per customer? (Round your answer to the nearest cent. )

Bentley Manufacturing,Inc.provided the following information for the year: The inventory account balances as of January 1 are given below. What is the ending balance in the Work-in-Process Inventory account?

Direct costs and indirect costs can be easily traced directly to a cost object.

How does a service company calculate unit cost per service? Why do managers need to know the unit cost per service?

The IMA standards of ethical practice require managerial accountants to maintain their professional competence.

In a manufacturing company,the salary of the sales staff is an example of period cost.

The wages of manufacturing plant janitors are considered to be non-manufacturing overhead costs as these costs are not directly related to the manufacturing process.

A corporation used $35,000 of direct materials and incurred $73,000 in direct labor cost,and $112,500 in manufacturing overhead costs during the period.What is the cost of goods manufactured if the beginning and ending Work-in-Process Inventories were $28,000 and $21,500,respectively?

Repair and maintenance costs of vehicles used to deliver products to the customers are included in manufacturing overhead.

Given the following information,determine the cost of goods manufactured.

Which of the following will be included in manufacturing overhead costs?

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

Describe the flow of product costs for a manufacturer.

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

Which of the following statements is true of managerial accounting?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

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