Question 1

An opportunity cost is the benefit given up or sacrificed when one alternative is chosen over another.

Accepted Answer

A) True 
 B)False

Question 2

Last year, Buckner & Jones Company incurred the following costs:  
  Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each.Assume that beginning and ending inventories of materials, work in process, and finished goods were zero.What was the gross margin per unit? (Note: Round your answer to two decimal places.)

Accepted Answer

A)   $125.25 
B)   $7.56 
C)   $95.50 
D)   $34.41 
A)   $125.25 
B)   $7.56 
C)   $95.50 
D)   $34.41

Question 3

Which of the following is an example of direct labor?

Accepted Answer

A)  vice president of marketing 
B)  assembly line worker for televisions 
C)  staff accountant 
D)  supervisor at a manufacturing plant 
A)  vice president of marketing 
B)  assembly line worker for televisions 
C)  staff accountant 
D)  supervisor at a manufacturing plant

Question 4

Product costs are carried in inventory until the goods are finished, then they are expensed.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following would be found on the balance sheet of a manufacturer?

Accepted Answer

A)  sales revenue 
B)  selling expenses 
C)  factory equipment 
D)  all of these are correct 
A)  sales revenue 
B)  selling expenses 
C)  factory equipment 
D)  all of these are correct

Question 6

Direct materials can be directly traced to the goods or services being produced.

Accepted Answer

A) True 
 B)False

Question 7

Costs can be assigned to cost objects in only one way.

Accepted Answer

A) True 
 B)False

Question 8

Wright & Boyle Inc.had the following income statement for the month of May: 
-  What was the administrative expense percent? (Note: Round answer to two decimal places.)

Accepted Answer

A)  15.92% 
B)  19.85% 
C)  16.50% 
D)  15.50% 
A)  15.92% 
B)  19.85% 
C)  16.50% 
D)  15.50%

Question 9

During the month of June, Carney & Whitley Inc.had cost of goods manufactured of $123,200, direct materials cost of $57,200, direct labor cost of $40,700, and manufacturing overhead cost of $28,600.The work in process balance on June 30 was equal to $11,000.What was the work in process balance on June 1?

Accepted Answer

A)  $7,700 
B)  $13,000 
C)  $10,000 
D)  $115,000 
A)  $7,700 
B)  $13,000 
C)  $10,000 
D)  $115,000

Question 10

Which of the following is not an example of a direct materials cost?

Accepted Answer

A)  shelves on a bookcase 
B)  engine in a car 
C)  tires on a bicycle 
D)  nails used to manufacture a desk 
A)  shelves on a bookcase 
B)  engine in a car 
C)  tires on a bicycle 
D)  nails used to manufacture a desk

Question 11

Cost of goods sold

Accepted Answer

A)  represents all costs associated with research, development, and general administration of the organization. 
B)  is found on the Balance Sheet. 
C)  is the cost of the partially completed goods that are still on the factory floor at the end of the period. 
D)  is the total product cost for the units sold during a period. 
A)  represents all costs associated with research, development, and general administration of the organization. 
B)  is found on the Balance Sheet. 
C)  is the cost of the partially completed goods that are still on the factory floor at the end of the period. 
D)  is the total product cost for the units sold during a period.

Question 12

Select the appropriate definition for each of the items listed below.
-A cost that is not inventoried

Accepted Answer

A) period cost 
B) direct cost 
C) opportunity cost 
D) variable cost 
E) indirect cost
F)fixed cost
G)product cost 
A) period cost 
B) direct cost 
C) opportunity cost 
D) variable cost 
E) indirect cost
F)fixed cost
G)product cost

Question 13

Select the appropriate classification of the items listed below.
-Wages of assembly line workers in an automobile plant

Accepted Answer

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

Question 14

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 per-unit prime cost? (Note: Round your answer to two decimal places.)

Accepted Answer

A)  $21.80 
B)  $23.50 
C)  $34.20 
D)  $11.70 
A)  $21.80 
B)  $23.50 
C)  $34.20 
D)  $11.70

Question 15

Select the appropriate classification of the output generated by each of the following industries.
-Video rental

Accepted Answer

A) Tangible 
B) Intangible 
A) Tangible 
B) Intangible

Question 16

Research and development costs would be classified as product cost.

Accepted Answer

A) True 
 B)False

Question 17

In July, Noel & Vang Company purchased materials costing $23,100 and incurred direct labor cost of $19,800.Manufacturing overhead totaled $35,200 for the month.Information on inventories was as follows: 
  What was the total manufacturing costs in July?

Accepted Answer

A)  $71,000 
B)  $50,000 
C)  $69,600 
D)  $77,110 
A)  $71,000 
B)  $50,000 
C)  $69,600 
D)  $77,110

Question 18

_________________ equals the sum of direct materials, direct labor, and manufacturing overhead.

Accepted Answer

The answer of _________________ equals the sum of direct materials,...

Question 19

Information from the records of Davies & Moore Corporation for December of the current year is as follows:  
  The conversion costs are:

Accepted Answer

A)  $960,000. 
B)  $1,179,000. 
C)  $775,500. 
D)  $564,000. 
A)  $960,000. 
B)  $1,179,000. 
C)  $775,500. 
D)  $564,000.

Question 20

Taylor & Edwards 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 per-unit conversion cost? (Note: Round answer to two decimal places.)

Accepted Answer

A)  $218.75 
B)  $163.69 
C)  $162.54 
D)  $100.15 
A)  $218.75 
B)  $163.69 
C)  $162.54 
D)  $100.15

An opportunity cost is the benefit given up or sacrificed when one alternative is chosen over another.

Which of the following is an example of direct labor?

Product costs are carried in inventory until the goods are finished, then they are expensed.

Which of the following would be found on the balance sheet of a manufacturer?

Direct materials can be directly traced to the goods or services being produced.

Costs can be assigned to cost objects in only one way.

Wright & Boyle Inc.had the following income statement for the month of May: - What was the administrative expense percent? (Note: Round answer to two decimal places.)

Which of the following is not an example of a direct materials cost?

Cost of goods sold

Select the appropriate definition for each of the items listed below. -A cost that is not inventoried

Select the appropriate classification of the items listed below. -Wages of assembly line workers in an automobile plant

Select the appropriate classification of the output generated by each of the following industries. -Video rental

Research and development costs would be classified as product cost.

In July, Noel & Vang Company purchased materials costing $23,100 and incurred direct labor cost of $19,800.Manufacturing overhead totaled $35,200 for the month.Information on inventories was as follows: What was the total manufacturing costs in July?

_________________ equals the sum of direct materials, direct labor, and manufacturing overhead.

Information from the records of Davies & Moore Corporation for December of the current year is as follows: The conversion costs are:

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

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Exam 2: Basic Managerial Accounting Concepts

An opportunity cost is the benefit given up or sacrificed when one alternative is chosen over another.

Which of the following is an example of direct labor?

Product costs are carried in inventory until the goods are finished, then they are expensed.

Which of the following would be found on the balance sheet of a manufacturer?

Direct materials can be directly traced to the goods or services being produced.

Costs can be assigned to cost objects in only one way.

Wright & Boyle Inc.had the following income statement for the month of May: - What was the administrative expense percent? (Note: Round answer to two decimal places.)

Which of the following is not an example of a direct materials cost?

Cost of goods sold

Select the appropriate definition for each of the items listed below. -A cost that is not inventoried

Select the appropriate classification of the items listed below. -Wages of assembly line workers in an automobile plant

Select the appropriate classification of the output generated by each of the following industries. -Video rental

Research and development costs would be classified as product cost.

In July, Noel & Vang Company purchased materials costing $23,100 and incurred direct labor cost of $19,800.Manufacturing overhead totaled $35,200 for the month.Information on inventories was as follows: What was the total manufacturing costs in July?

_________________ equals the sum of direct materials, direct labor, and manufacturing overhead.

Information from the records of Davies & Moore Corporation for December of the current year is as follows: The conversion costs are:

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