Question 1

Prime cost is the sum of direct materials cost and direct labor cost.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  100.51% 
B)  19.45% 
C)  52.56% 
D)  46.25% 
A)  100.51% 
B)  19.45% 
C)  52.56% 
D)  46.25%

Question 3

Select the appropriate classification of the output generated by each of the following industries.
-Law firm

Accepted Answer

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

Question 4

Assigning costs involves the way that a cost is linked to some cost object.

Accepted Answer

A) True 
 B)False

Question 5

The cost of the partially completed goods at the end of the period would be

Accepted Answer

A)  ending work in process inventory. 
B)  cost of goods sold. 
C)  beginning finished goods inventory. 
D)  beginning work in process inventory. 
A)  ending work in process inventory. 
B)  cost of goods sold. 
C)  beginning finished goods inventory. 
D)  beginning work in process inventory.

Question 6

Select the appropriate classification for each of the items listed below.
-Factory supervisor's salary

Accepted Answer

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

Question 7

Which of the following is an example of a period cost?

Accepted Answer

A)  research and development 
B)  selling and marketing 
C)  general accounting 
D)  all of these 
A)  research and development 
B)  selling and marketing 
C)  general accounting 
D)  all of these

Question 8

A(n) ________________ is a cost that does not increase in total as output increase and does not decrease in total as output decreases.

Accepted Answer

The answer of A(n) ________________ is a cost that does...

Question 9

Select the appropriate definition for each of the items listed below.
-The cost of units finished but not sold at the end of the current period

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 10

The process of assigning an indirect cost to a cost object by using a reasonable and convenient method is called _____________.

Accepted Answer

The answer of The process of assigning an indirect cost...

Question 11

Product costs are expensed

Accepted Answer

A)  when the product is finished. 
B)  when the product unit cost is calculated. 
C)  when the product is sold. 
D)  all of these are correct. 
A)  when the product is finished. 
B)  when the product unit cost is calculated. 
C)  when the product is sold. 
D)  all of these are correct.

Question 12

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

Accepted Answer

A)  53.75% 
B)  48.75% 
C)  17.20% 
D)  19.14% 
A)  53.75% 
B)  48.75% 
C)  17.20% 
D)  19.14%

Question 13

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

Accepted Answer

A)  $263.75 
B)  $62.50 
C)  $170.24 
D)  $156.25 
A)  $263.75 
B)  $62.50 
C)  $170.24 
D)  $156.25

Question 14

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.
-
The total period expense was:

Accepted Answer

A)  $24,000. 
B)  $190,000. 
C)  $48,300. 
D)  $250,000. 
A)  $24,000. 
B)  $190,000. 
C)  $48,300. 
D)  $250,000.

Question 15

______________is the amount of cash or cash equivalent sacrificed for goods and/or services that are expected to bring a current or future benefit to the organization.

Accepted Answer

The answer of ______________is the amount of cash or cash...

Question 16

Select the appropriate item for each of the definitions listed below.
-sales revenue − cost of goods sold

Accepted Answer

A) gross margin 
B) selling expenses 
C) sales revenue 
D) cost of goods sold 
E) operating income 
A) gross margin 
B) selling expenses 
C) sales revenue 
D) cost of goods sold 
E) operating income

Question 17

Select the appropriate definition for each of the items listed below.
-Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory

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 18

Indirect costs are costs that are not easily and accurately traced to a cost object.

Accepted Answer

A) True 
 B)False

Question 19

Information from the records of Place, Inc., for December is as follows:  
  
Net income for the month of December is:

Accepted Answer

A)  $644,000. 
B)  $36,000. 
C)  $636,000. 
D)  $180,000. 
A)  $644,000. 
B)  $36,000. 
C)  $636,000. 
D)  $180,000.

Question 20

Which of the following would not be found on an income statement of a service organization?

Accepted Answer

A)  selling expenses 
B)  cost of goods sold 
C)  operating income 
D)  sales revenue 
A)  selling expenses 
B)  cost of goods sold 
C)  operating income 
D)  sales revenue

Prime cost is the sum of direct materials cost and direct labor cost.

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

Select the appropriate classification of the output generated by each of the following industries. -Law firm

Assigning costs involves the way that a cost is linked to some cost object.

The cost of the partially completed goods at the end of the period would be

Select the appropriate classification for each of the items listed below. -Factory supervisor's salary

Which of the following is an example of a period cost?

A(n) ________________ is a cost that does not increase in total as output increase and does not decrease in total as output decreases.

Select the appropriate definition for each of the items listed below. -The cost of units finished but not sold at the end of the current period

The process of assigning an indirect cost to a cost object by using a reasonable and convenient method is called _____________.

Product costs are expensed

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

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. - The total period expense was:

______________is the amount of cash or cash equivalent sacrificed for goods and/or services that are expected to bring a current or future benefit to the organization.

Select the appropriate item for each of the definitions listed below. -sales revenue − cost of goods sold

Select the appropriate definition for each of the items listed below. -Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory

Indirect costs are costs that are not easily and accurately traced to a cost object.

Information from the records of Place, Inc., for December is as follows: Net income for the month of December is:

Which of the following would not be found on an income statement of a service organization?

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

Prime cost is the sum of direct materials cost and direct labor cost.

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

Select the appropriate classification of the output generated by each of the following industries. -Law firm

Assigning costs involves the way that a cost is linked to some cost object.

The cost of the partially completed goods at the end of the period would be

Select the appropriate classification for each of the items listed below. -Factory supervisor's salary

Which of the following is an example of a period cost?

A(n) ________________ is a cost that does not increase in total as output increase and does not decrease in total as output decreases.

Select the appropriate definition for each of the items listed below. -The cost of units finished but not sold at the end of the current period

The process of assigning an indirect cost to a cost object by using a reasonable and convenient method is called _____________.

Product costs are expensed

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

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. - The total period expense was:

______________is the amount of cash or cash equivalent sacrificed for goods and/or services that are expected to bring a current or future benefit to the organization.

Select the appropriate item for each of the definitions listed below. -sales revenue − cost of goods sold

Select the appropriate definition for each of the items listed below. -Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory

Indirect costs are costs that are not easily and accurately traced to a cost object.

Information from the records of Place, Inc., for December is as follows: Net income for the month of December is:

Which of the following would not be found on an income statement of a service organization?

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