Exam 15: Managerial Accounting Concepts and Principles

Laramie Technologies had the following data: Cost of Materials Used $50,000 Direct Labor costs $56,000 Factory Overhead $28,000 Work in Process, beg. $45,000 Work in Process, end. $32,000 Show your calculations to determine the Cost of Goods Manufactured.

Which of the following items would not be classified as part of factory overhead?

Which one of the following will not be found on the balance sheet of a manufacturing company?

The Sharpe Company reports the following information for 2012:

Managerial accounting information includes both historical and estimated data.

Which of the following is most associated with financial accounting?

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

A cost can be a payment of cash for the purpose of generating revenues.

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in factory overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $32,000 respectively, the cost of goods manufactured was:

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

Managerial accounting uses only past data in reports to aid management in the decision making process.

A staff department has no direct authority over a line department.

Conversion cost is the combination of direct labor cost and factory overhead cost.

Product costs are also referred to as inventoriable costs.

Manufacturers use labor, plant, and equipment to convert direct materials into finished products.

In most business organizations, the chief management accountant is called the:

Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change.

Operating expenses are product costs and are expensed when the product is sold.

Direct costs can be specifically traced to a cost object.