Question 1

Standard costing combines actual direct costs of materials and labor with estimated overhead costs to determine a product unit cost.

Accepted Answer

A) True 
 B)False

Question 2

The cost of goods sold decreases the balance in the Finished Goods Inventory account.

Accepted Answer

A) True 
 B)False

Question 3

Use the information below for the year ended December 31,2014,to prepare the statement of cost of goods manufactured.

Accepted Answer

The answer of Use the information below for the year...

Question 4

The costs of materials used in production are transferred from the Materials Inventory account directly to the Cost of Goods Sold account.

Accepted Answer

A) True 
 B)False

Question 5

Overhead costs can be directly traced to products once the products are completed.

Accepted Answer

A) True 
 B)False

Question 6

Identify and explain the important questions a manager must address before preparing a managerial report.(Hint: Think "w's.")

Accepted Answer

Why: To establish the purpose of the rep

Question 7

Which of the following user groups will use managerial accounting information for decision-making purposes?

Accepted Answer

A) Customers 
B) Lenders 
C) Employees 
D) Stockholders 
A) Customers 
B) Lenders 
C) Employees 
D) Stockholders

Question 8

Salaries of supervisory production personnel should be classified as direct labor costs.

Accepted Answer

A) True 
 B)False

Question 9

The credibility standard of management accountants state that management accountants must communicate information fairly and objectively.This means essentially that accountants must perform each task

Accepted Answer

A) as professionals,possessing the degree of skill of those management accountants who held the position before them. 
B) to provide relevant information,both positive and negative,to the recipients of their reports. 
C) in conformity with generally accepted accounting principles. 
D) to the satisfaction of government regulators. 
A) as professionals,possessing the degree of skill of those management accountants who held the position before them. 
B) to provide relevant information,both positive and negative,to the recipients of their reports. 
C) in conformity with generally accepted accounting principles. 
D) to the satisfaction of government regulators.

Question 10

Manufacturing costs behave as variable or fixed costs.

Accepted Answer

A) True 
 B)False

Question 11

All manufacturing costs incurred and assigned to products that are being produced are classified as

Accepted Answer

A) variable costs. 
B) allocated costs. 
C) product costs. 
D) overhead costs. 
A) variable costs. 
B) allocated costs. 
C) product costs. 
D) overhead costs.

Question 12

Which of the following accounts includes the cost of completed but unsold units of a manufacturing firm?

Accepted Answer

A) Cost of Goods Sold 
B) Finished Goods Inventory 
C) Work in Process Inventory 
D) Materials Inventory 
A) Cost of Goods Sold 
B) Finished Goods Inventory 
C) Work in Process Inventory 
D) Materials Inventory

Question 13

The standard costing method uses estimated costs to find product unit cost.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not a stage in the management process?

Accepted Answer

A) Evaluating 
B) Communicating 
C) Planning 
D) Recording 
A) Evaluating 
B) Communicating 
C) Planning 
D) Recording

Question 15

Managerial accounting primarily provides information on past performance.

Accepted Answer

A) True 
 B)False

Question 16

Which cost measurement method calculates product unit cost using estimates for direct materials,direct labor,and overhead?

Accepted Answer

A) Standard costing 
B) Actual costing 
C) Full costing 
D) Normal costing 
A) Standard costing 
B) Actual costing 
C) Full costing 
D) Normal costing

Question 17

Which of the following is not a product cost?

Accepted Answer

A) Depreciation on office furniture 
B) Manufacturing overhead 
C) Direct labor 
D) Direct materials 
A) Depreciation on office furniture 
B) Manufacturing overhead 
C) Direct labor 
D) Direct materials

Question 18

Job #178 consists of 500 units and has total of direct materials,$48,000;direct labor,$58,000;and overhead,$35,000.
a.What is the unit product cost?
b.What are the prime costs per unit?
c.What are the conversion costs per unit?

Accepted Answer

a.($48,000 + $58,000 + $35,000)/ 500 uni

Question 19

Which of the following is a variable cost?

Accepted Answer

A) Raw materials 
B) Rent 
C) Insurance expense 
D) Salaries 
A) Raw materials 
B) Rent 
C) Insurance expense 
D) Salaries

Question 20

Total manufacturing costs incurred during a period are transferred to the

Accepted Answer

A) Cost of Goods Sold account. 
B) Work in Process Inventory account. 
C) Finished Goods Inventory account. 
D) Overhead account. 
A) Cost of Goods Sold account. 
B) Work in Process Inventory account. 
C) Finished Goods Inventory account. 
D) Overhead account.

Exam 15: Managerial Accounting and Cost Concepts

Standard costing combines actual direct costs of materials and labor with estimated overhead costs to determine a product unit cost.

The cost of goods sold decreases the balance in the Finished Goods Inventory account.

Use the information below for the year ended December 31,2014,to prepare the statement of cost of goods manufactured.

The costs of materials used in production are transferred from the Materials Inventory account directly to the Cost of Goods Sold account.

Overhead costs can be directly traced to products once the products are completed.

Identify and explain the important questions a manager must address before preparing a managerial report.(Hint: Think "w's.")

Which of the following user groups will use managerial accounting information for decision-making purposes?

Salaries of supervisory production personnel should be classified as direct labor costs.

The credibility standard of management accountants state that management accountants must communicate information fairly and objectively.This means essentially that accountants must perform each task

Manufacturing costs behave as variable or fixed costs.

All manufacturing costs incurred and assigned to products that are being produced are classified as

Which of the following accounts includes the cost of completed but unsold units of a manufacturing firm?

The standard costing method uses estimated costs to find product unit cost.

Which of the following is not a stage in the management process?

Managerial accounting primarily provides information on past performance.

Which cost measurement method calculates product unit cost using estimates for direct materials,direct labor,and overhead?

Which of the following is not a product cost?

Job #178 consists of 500 units and has total of direct materials,$48,000;direct labor,$58,000;and overhead,$35,000. a.What is the unit product cost? b.What are the prime costs per unit? c.What are the conversion costs per unit?

Which of the following is a variable cost?

Total manufacturing costs incurred during a period are transferred to the

Uses of Accounting Information and the Financial Statements

Measurement Concepts: Recording Business Transactions

Measuring Business Income: Adjusting the Accounts

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long-Term Assets

Current Liabilities and Fair Value Accounting

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Costing Systems: Job Order Costing

Costing Systems: Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis

Capital Investment Analysis

Pricing Decisions, including Target Costing and Transfer Pricing

Quality Management and Measurement

Accounting for Unincorporated Businesses

Accounting for Investments

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