Question 1

Product costs include direct labor and advertising expense.

Accepted Answer

A) True 
 B)False

Question 2

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Accepted Answer

A) True 
 B)False

Question 3

Williams Company reports production costs for 2015 as follows:   Williams Company's product costs for 2015 amount to:

Accepted Answer

A)  $995,000 
B)  $920,000 
C)  $825,000 
D)  $770,000 
A)  $995,000 
B)  $920,000 
C)  $825,000 
D)  $770,000

Question 4

An example of a period cost is:

Accepted Answer

A)  advertising expense 
B)  indirect materials 
C)  depreciation on factory equipment 
D)  property taxes on plant facilities 
A)  advertising expense 
B)  indirect materials 
C)  depreciation on factory equipment 
D)  property taxes on plant facilities

Question 5

Nonmanufacturing costs are classified into two categories: selling and administrative.

Accepted Answer

A) True 
 B)False

Question 6

A diagram of the operating structure of an organization is called an organization chart.

Accepted Answer

A) True 
 B)False

Question 7

Keeton Company had the following data:
Cost of Materials Used $60,000
Direct Labor costs $58,000
Factory Overhead $33,000
Work in Process, beg. $29,000
Work in Process, end. $18,000
Finished Goods,beg. $32,000
Finished Goods, end. $18,000
Show your calculations to determine the Cost of Goods Sold.

Accepted Answer

$60,000 + $58,000 +

Question 8

In most business organizations, the chief accountant is called the controller.

Accepted Answer

A) True 
 B)False

Question 9

Managerial accounting provides useful information to managers on product costs.

Accepted Answer

A) True 
 B)False

Question 10

Planning is the process of monitoring operating results and comparing actual results with the expected results.

Accepted Answer

A) True 
 B)False

Question 11

Work in process inventory on December 31, 2011, is $42,000. Work in process inventory decreased by 40% during 2011. Total manufacturing costs incurred in 2011 amount to $260,000. What is cost of goods manufactured?

Accepted Answer

A)  $232,000 
B)  $302,000 
C)  $288,000 
D)  $190,000 
A)  $232,000 
B)  $302,000 
C)  $288,000 
D)  $190,000

Question 12

A performance report that identifies the amount of employee downtime is a financial accounting report.

Accepted Answer

A) True 
 B)False

Question 13

Costs on the income statement for both a merchandiser and a manufacturer would include:

Accepted Answer

A)  operating expenses 
B)  direct materials 
C)  direct labor incurred 
D)  cost of goods manufactured 
A)  operating expenses 
B)  direct materials 
C)  direct labor incurred 
D)  cost of goods manufactured

Question 14

Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $186,300; Factory Overhead, $187,900; and Selling Expenses, $45,290.

Accepted Answer

A)  $533,800 
B)  $187,900 
C)  $721,700 
D)  $374,200 
A)  $533,800 
B)  $187,900 
C)  $721,700 
D)  $374,200

Question 15

A company manufactured 50,000 units of a product at a cost of $450,000. They sold 40,000 units for $15 each. What is the gross margin?

Accepted Answer

A)  $750,000 
B)  $240,000 
C)  $600,000 
D)  $450,000 
A)  $750,000 
B)  $240,000 
C)  $600,000 
D)  $450,000

Question 16

Indirect costs can be specifically identified to a cost object.

Accepted Answer

A) True 
 B)False

Question 17

The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year.
   Required: (Present all reports and calculations in thousands of dollars)
(a) What was the cost of the raw materials used in production during the year?
(b) What was the cost of goods manufactured (finished) for the year?
(c) What was the cost of goods sold for the year?
(d) What was the net income for the year?

Accepted Answer

(a) The cost of the raw materials used i

Question 18

The Zoe Corporation has the following information for the month March. Determine the (a) cost of goods manufactured, and (b) cost of goods sold.

Accepted Answer

The answer of The Zoe Corporation has the following information...

Question 19

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 20

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Accepted Answer

A) True 
 B)False

Product costs include direct labor and advertising expense.

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Williams Company reports production costs for 2015 as follows: Williams Company's product costs for 2015 amount to:

An example of a period cost is:

Nonmanufacturing costs are classified into two categories: selling and administrative.

A diagram of the operating structure of an organization is called an organization chart.

Keeton Company had the following data: Cost of Materials Used $60,000 Direct Labor costs $58,000 Factory Overhead $33,000 Work in Process, beg. $29,000 Work in Process, end. $18,000 Finished Goods,beg. $32,000 Finished Goods, end. $18,000 Show your calculations to determine the Cost of Goods Sold.

In most business organizations, the chief accountant is called the controller.

Managerial accounting provides useful information to managers on product costs.

Planning is the process of monitoring operating results and comparing actual results with the expected results.

Work in process inventory on December 31, 2011, is $42,000. Work in process inventory decreased by 40% during 2011. Total manufacturing costs incurred in 2011 amount to $260,000. What is cost of goods manufactured?

A performance report that identifies the amount of employee downtime is a financial accounting report.

Costs on the income statement for both a merchandiser and a manufacturer would include:

Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $186,300; Factory Overhead, $187,900; and Selling Expenses, $45,290.

A company manufactured 50,000 units of a product at a cost of $450,000. They sold 40,000 units for $15 each. What is the gross margin?

Indirect costs can be specifically identified to a cost object.

The Zoe Corporation has the following information for the month March. Determine the (a) cost of goods manufactured, and (b) cost of goods sold.

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 15: Managerial Accounting Concepts and Principles

Product costs include direct labor and advertising expense.

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Williams Company reports production costs for 2015 as follows: Williams Company's product costs for 2015 amount to:

An example of a period cost is:

Nonmanufacturing costs are classified into two categories: selling and administrative.

A diagram of the operating structure of an organization is called an organization chart.

Keeton Company had the following data: Cost of Materials Used $60,000 Direct Labor costs $58,000 Factory Overhead $33,000 Work in Process, beg. $29,000 Work in Process, end. $18,000 Finished Goods,beg. $32,000 Finished Goods, end. $18,000 Show your calculations to determine the Cost of Goods Sold.

In most business organizations, the chief accountant is called the controller.

Managerial accounting provides useful information to managers on product costs.

Planning is the process of monitoring operating results and comparing actual results with the expected results.

Work in process inventory on December 31, 2011, is $42,000. Work in process inventory decreased by 40% during 2011. Total manufacturing costs incurred in 2011 amount to $260,000. What is cost of goods manufactured?

A performance report that identifies the amount of employee downtime is a financial accounting report.

Costs on the income statement for both a merchandiser and a manufacturer would include:

Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $186,300; Factory Overhead, $187,900; and Selling Expenses, $45,290.

A company manufactured 50,000 units of a product at a cost of $450,000. They sold 40,000 units for $15 each. What is the gross margin?

Indirect costs can be specifically identified to a cost object.

The Zoe Corporation has the following information for the month March. Determine the (a) cost of goods manufactured, and (b) cost of goods sold.

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

Statement of Cash Flows

Financial Statement Analysis

Filters