Question 1

Employees who convert direct materials into a product are classified as _____________.

Accepted Answer

The answer of Employees who convert direct materials into a...

Question 2

Excellent Inc.had a per-unit conversion cost of $3.00 during April and incurred direct materials cost of $112,000, direct labor costs of $84,000, and manufacturing overhead costs of $50,400 during the month.How many units did it manufacture during the month?

Accepted Answer

A)  70,000 
B)  18,000 
C)  44,800 
D)  30,000 
A)  70,000 
B)  18,000 
C)  44,800 
D)  30,000

Question 3

Select the appropriate classification for each of the items listed below.
-Fees paid to an advertising firm

Accepted Answer

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

Question 4

Industries that provide services do not normally have direct contact with their customers.

Accepted Answer

A) True 
 B)False

Question 5

Select the appropriate classification for each of the items listed below.
-Fees paid to outside auditing firm

Accepted Answer

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

Question 6

Wooten & McMahon Enterprises produces a product with the following per-unit costs:
  
- Last year, Wooten & McMahon Enterprises produced and sold 825 units at a sales price of $74.80 each.Total selling and administrative expense was $24,200.What was the total operating income last year? (Note: Round answer to two decimal places.)

Accepted Answer

A)  $29,000.75 
B)  $51,000.00 
C)  $25,500.50 
D)  $5,912.50 
A)  $29,000.75 
B)  $51,000.00 
C)  $25,500.50 
D)  $5,912.50

Question 7

Costs are directly, not indirectly, associated with cost objects.

Accepted Answer

A) True 
 B)False

Question 8

A factory building needs to hire janitorial services.This is classified as indirect labor.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true of a variable cost?

Accepted Answer

A)  A variable cost in total changes in direct proportion to changes in output within the relevant range. 
B)  A variable cost is a cost that is not linked to a company's output. 
C)  A variable cost in total remains constant regardless of the level of output. 
D)  A variable cost in total increases as output decreases and decreases as output increases. 
A)  A variable cost in total changes in direct proportion to changes in output within the relevant range. 
B)  A variable cost is a cost that is not linked to a company's output. 
C)  A variable cost in total remains constant regardless of the level of output. 
D)  A variable cost in total increases as output decreases and decreases as output increases.

Question 10

Materials in the raw materials account do not become direct materials

Accepted Answer

A)  until they are withdrawn from inventory for use in production. 
B)  until the finished product is sold. 
C)  until they are purchased from a vendor. 
D)  none of these are correct. 
A)  until they are withdrawn from inventory for use in production. 
B)  until the finished product is sold. 
C)  until they are purchased from a vendor. 
D)  none of these are correct.

Question 11

Thomas & Cooke Inc.had a gross margin for the month of February totaling $46,200.They sold 5,500 units during the month at a sales price of $22 per unit.What was the amount of cost of goods sold for the month?

Accepted Answer

A)  $100,000 
B)  $42,000 
C)  $74,800 
D)  None of these are correct. 
A)  $100,000 
B)  $42,000 
C)  $74,800 
D)  None of these are correct.

Question 12

​Which of the following statements best describes an indirect cost?

Accepted Answer

A)  An indirect cost can be easily and accurately traced to a cost object. 
B)  An indirect cost is assigned to a cost object using allocation. 
C)  It is not important to assign an indirect cost as it can be traced to a cost object. 
D)  None of these statements are true. 
A)  An indirect cost can be easily and accurately traced to a cost object. 
B)  An indirect cost is assigned to a cost object using allocation. 
C)  It is not important to assign an indirect cost as it can be traced to a cost object. 
D)  None of these statements are true.

Question 13

Which of the following statements is true of assigning costs to a cost object?

Accepted Answer

A)  Assigning costs to a cost object is the way that costs are measured and recorded. 
B)  Assigning costs to a cost object can be accomplished in a number of ways. 
C)  Assigning costs to a cost object typically is simpler than cost accumulation. 
D)  All of these 
A)  Assigning costs to a cost object is the way that costs are measured and recorded. 
B)  Assigning costs to a cost object can be accomplished in a number of ways. 
C)  Assigning costs to a cost object typically is simpler than cost accumulation. 
D)  All of these

Question 14

Costs are incurred to produce future benefits.

Accepted Answer

A) True 
 B)False

Question 15

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles.
-cost of windshields used in the production process

Accepted Answer

A) direct materials 
B) direct labor 
C) overhead 
D) selling expense 
E) administrative expense 
A) direct materials 
B) direct labor 
C) overhead 
D) selling expense 
E) administrative expense

Question 16

Select the appropriate definition for each of the items listed below.
-Direct materials + direct labor + overhead

Accepted Answer

A) Work in process inventory 
B) Finished goods inventory 
C) Cost of goods sold 
D) Cost of goods manufactured 
E) Total manufacturing costs 
A) Work in process inventory 
B) Finished goods inventory 
C) Cost of goods sold 
D) Cost of goods manufactured 
E) Total manufacturing costs

Question 17

As costs are used up in the production of revenues, they are said to expire.Expired costs are called expenses.

Accepted Answer

A) True 
 B)False

Question 18

Atlas Inc.manufactures television sets.Last month, direct materials (electronic components, etc.) costing $550,000 were put into production.Direct labor of $880,000 was incurred, manufacturing overhead equaled $495,000, and selling and administrative costs totaled $396,000.The company manufactured 8,400 television sets during the month.Assume that there were no beginning or ending work in process balances.What was the total product cost for last month?

Accepted Answer

A)  $1,925,000 
B)  $2,110,000 
C)  $1,300,000 
D)  $1,250,000 
A)  $1,925,000 
B)  $2,110,000 
C)  $1,300,000 
D)  $1,250,000

Question 19

Glue used in the manufacture of cabinets would be an example of a fixed cost.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following would not be found on the income statement of a manufacturer?

Accepted Answer

A)  cost of goods sold 
B)  work in process 
C)  sales revenue 
D)  operating income 
A)  cost of goods sold 
B)  work in process 
C)  sales revenue 
D)  operating income

Employees who convert direct materials into a product are classified as _____________.

Excellent Inc.had a per-unit conversion cost of $3.00 during April and incurred direct materials cost of $112,000, direct labor costs of $84,000, and manufacturing overhead costs of $50,400 during the month.How many units did it manufacture during the month?

Select the appropriate classification for each of the items listed below. -Fees paid to an advertising firm

Industries that provide services do not normally have direct contact with their customers.

Select the appropriate classification for each of the items listed below. -Fees paid to outside auditing firm

Costs are directly, not indirectly, associated with cost objects.

A factory building needs to hire janitorial services.This is classified as indirect labor.

Which of the following is true of a variable cost?

Materials in the raw materials account do not become direct materials

Thomas & Cooke Inc.had a gross margin for the month of February totaling $46,200.They sold 5,500 units during the month at a sales price of $22 per unit.What was the amount of cost of goods sold for the month?

Which of the following statements best describes an indirect cost?

Which of the following statements is true of assigning costs to a cost object?

Costs are incurred to produce future benefits.

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -cost of windshields used in the production process

Select the appropriate definition for each of the items listed below. -Direct materials + direct labor + overhead

As costs are used up in the production of revenues, they are said to expire.Expired costs are called expenses.

Glue used in the manufacture of cabinets would be an example of a fixed cost.

Which of the following would not be found on the income statement of a manufacturer?

Introduction to Managerial Accounting

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Basic Managerial Accounting Concepts

Employees who convert direct materials into a product are classified as _____________.

Excellent Inc.had a per-unit conversion cost of $3.00 during April and incurred direct materials cost of $112,000, direct labor costs of $84,000, and manufacturing overhead costs of $50,400 during the month.How many units did it manufacture during the month?

Select the appropriate classification for each of the items listed below. -Fees paid to an advertising firm

Industries that provide services do not normally have direct contact with their customers.

Select the appropriate classification for each of the items listed below. -Fees paid to outside auditing firm

Costs are directly, not indirectly, associated with cost objects.

A factory building needs to hire janitorial services.This is classified as indirect labor.

Which of the following is true of a variable cost?

Materials in the raw materials account do not become direct materials

Thomas & Cooke Inc.had a gross margin for the month of February totaling $46,200.They sold 5,500 units during the month at a sales price of $22 per unit.What was the amount of cost of goods sold for the month?

​Which of the following statements best describes an indirect cost?

Which of the following statements is true of assigning costs to a cost object?

Costs are incurred to produce future benefits.

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -cost of windshields used in the production process

Select the appropriate definition for each of the items listed below. -Direct materials + direct labor + overhead

As costs are used up in the production of revenues, they are said to expire.Expired costs are called expenses.

Glue used in the manufacture of cabinets would be an example of a fixed cost.

Which of the following would not be found on the income statement of a manufacturer?

Introduction to Managerial Accounting

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Which of the following statements best describes an indirect cost?