Question 1

XO,Inc.reports the following cost information for March:
 
What is the amount of direct labor incurred by XO in March?

Accepted Answer

A) $62,270 
B) $6,720 
C) $71,000 
D) $18,950 
A) $62,270 
B) $6,720 
C) $71,000 
D) $18,950

Question 2

Which of the following is a prime cost and a conversion cost?

Accepted Answer

A) manufacturing overhead 
B) direct materials 
C) direct labor 
D) selling expenses 
A) manufacturing overhead 
B) direct materials 
C) direct labor 
D) selling expenses

Question 3

Which of the following is most likely a service company?

Accepted Answer

A) a law firm 
B) a car dealership 
C) a grocery store 
D) a bakery 
A) a law firm 
B) a car dealership 
C) a grocery store 
D) a bakery

Question 4

Fire Cat,Inc.selected cost data for the year are shown below:
 
What is the total of manufacturing costs incurred by Fire Cat,Inc.during the year?

Accepted Answer

A) $149,800 
B) $143,800 
C) $25,600 
D) $37,400 
A) $149,800 
B) $143,800 
C) $25,600 
D) $37,400

Question 5

Manufacturing overhead is also referred to as ________.

Accepted Answer

A) indirect manufacturing costs 
B) direct manufacturing costs 
C) prime costs 
D) period costs 
A) indirect manufacturing costs 
B) direct manufacturing costs 
C) prime costs 
D) period costs

Question 6

In a manufacturing company,wages and benefits of factory managers are considered as product costs.

Accepted Answer

A) True 
 B)False

Question 7

Product costs are expensed ________.

Accepted Answer

A) when the products are consumed or sold 
B) when the accounting period they are incurred in comes to an end 
C) when the products are transferred to the Work-in-Process Inventory account 
D) when the market value of products goes above the recorded value 
A) when the products are consumed or sold 
B) when the accounting period they are incurred in comes to an end 
C) when the products are transferred to the Work-in-Process Inventory account 
D) when the market value of products goes above the recorded value

Question 8

Amoeba 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 Raw Materials Inventory account?

Accepted Answer

A) $134,000 
B) $6,000 
C) $110,740 
D) $23,260 
A) $134,000 
B) $6,000 
C) $110,740 
D) $23,260

Question 9

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

Question 10

Minnetonka,Inc.is a merchandiser of stone ornaments.The company sold 15,600 units during the year.The company has provided the following information:
 
What is the unit cost per item sold? (Round your answer to the nearest cent. )

Accepted Answer

A) $19.58 
B) $16.57 
C) $23.14 
D) $20.13 
A) $19.58 
B) $16.57 
C) $23.14 
D) $20.13

Question 11

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 12

Amber Corporation has provided the following information of its operating activities for the year:
   
Required: Prepare Amber's income statement for the year ended December 31.Use the format provided below:

Accepted Answer

The answer of Amber Corporation has provided the following information...

Question 13

Managerial accounting can be used to calculate costs for service and merchandising companies.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an example of a period cost for a manufacturing company?

Accepted Answer

A) advertising expense 
B) depreciation on factory equipment 
C) indirect materials 
D) property taxes for the factory 
A) advertising expense 
B) depreciation on factory equipment 
C) indirect materials 
D) property taxes for the factory

Question 15

Which of the following is an objective of managerial accounting?

Accepted Answer

A) to generate a company's financial statements for tax reporting 
B) to provide information to business managers to assist them in controlling their business 
C) to provide information to shareholders to assist them with their investment decisions 
D) to ensure that the reports produced for internal and external business purposes are GAAP compliant 
A) to generate a company's financial statements for tax reporting 
B) to provide information to business managers to assist them in controlling their business 
C) to provide information to shareholders to assist them with their investment decisions 
D) to ensure that the reports produced for internal and external business purposes are GAAP compliant

Question 16

Which of the following is the primary objective of managerial accounting?

Accepted Answer

A) providing information that managers need to make operational decisions 
B) providing historical data to investors and creditors 
C) providing summarized results of operations 
D) providing information to comply with laws and regulations of government bodies 
A) providing information that managers need to make operational decisions 
B) providing historical data to investors and creditors 
C) providing summarized results of operations 
D) providing information to comply with laws and regulations of government bodies

Question 17

Which of the following is a product cost?

Accepted Answer

A) sales commissions 
B) CEO's salary 
C) delivery van depreciation 
D) depreciation on production equipment 
A) sales commissions 
B) CEO's salary 
C) delivery van depreciation 
D) depreciation on production equipment

Question 18

Manufacturing overhead includes all manufacturing costs,such as direct labor and direct materials.

Accepted Answer

A) True 
 B)False

Question 19

Repair and maintenance costs for manufacturing equipment are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following will most likely be considered an indirect material cost for a bakery?

Accepted Answer

A) spices 
B) flour 
C) milk 
D) eggs 
A) spices 
B) flour 
C) milk 
D) eggs

Exam 18: Introduction to Managerial Accounting

XO,Inc.reports the following cost information for March: What is the amount of direct labor incurred by XO in March?

Which of the following is a prime cost and a conversion cost?

Which of the following is most likely a service company?

Fire Cat,Inc.selected cost data for the year are shown below: What is the total of manufacturing costs incurred by Fire Cat,Inc.during the year?

Manufacturing overhead is also referred to as ________.

In a manufacturing company,wages and benefits of factory managers are considered as product costs.

Product costs are expensed ________.

Amoeba 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 Raw Materials Inventory account?

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

Minnetonka,Inc.is a merchandiser of stone ornaments.The company sold 15,600 units during the year.The company has provided the following information: What is the unit cost per item sold? (Round your answer to the nearest cent. )

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

Amber Corporation has provided the following information of its operating activities for the year: Required: Prepare Amber's income statement for the year ended December 31.Use the format provided below:

Managerial accounting can be used to calculate costs for service and merchandising companies.

Which of the following is an example of a period cost for a manufacturing company?

Which of the following is an objective of managerial accounting?

Which of the following is the primary objective of managerial accounting?

Which of the following is a product cost?

Manufacturing overhead includes all manufacturing costs,such as direct labor and direct materials.

Repair and maintenance costs for manufacturing equipment are included in manufacturing overhead.

Which of the following will most likely be considered an indirect material cost for a bakery?

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

Filters