Question 1

Differentiate between:
a) direct materials versus indirect materials
b) direct labor versus indirect labor

Accepted Answer

a) Direct materials must become a physic

Question 2

Product costs are not expensed until the product is sold.

Accepted Answer

A) True 
 B)False

Question 3

Cost of Materials Used $45,000 Direct Labor costs $48,000
Factory Overhead $39,000
Work in Process, beg. $28,000
Work in Process, end. $18,000
Finished Goods,beg. $28,000
Finished Goods, end. $18,000
What is Cost of Goods Sold?

Accepted Answer

A)  $152,000 
B)  $142,000 
C)  $10,000 
D)  $128,000 
A)  $152,000 
B)  $142,000 
C)  $10,000 
D)  $128,000

Question 4

All of the following would be reported on the balance sheet as a current asset except:

Accepted Answer

A)  factory overhead 
B)  materials inventory 
C)  finished goods inventory 
D)  work in process inventory 
A)  factory overhead 
B)  materials inventory 
C)  finished goods inventory 
D)  work in process inventory

Question 5

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

Accepted Answer

A)  Investors 
B)  Managers 
C)  Shareholders 
D)  Customers 
A)  Investors 
B)  Managers 
C)  Shareholders 
D)  Customers

Question 6

Managerial accounting reports are prepared according to generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 7

Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during 2011. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100; maintenance of $4,500; supplies of $1,800; depreciation of $7,900; and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance.
Prepare a statement of cost of goods manufactured.

Accepted Answer

Allen Company
Statem

Question 8

In the income statement of a manufacturing company, what replaces purchases in the cost of goods section of a retail company?

Accepted Answer

A)  Finished goods 
B)  Cost of merchandise available 
C)  Cost of goods manufactured 
D)  Work in process completed 
A)  Finished goods 
B)  Cost of merchandise available 
C)  Cost of goods manufactured 
D)  Work in process completed

Question 9

The vice presidents of production and sales and the controller hold line positions in most large organizations.

Accepted Answer

A) True 
 B)False

Question 10

Indirect labor and indirect materials would be part of factory overhead.

Accepted Answer

A) True 
 B)False

Question 11

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 12

Rent expense on a factory building would be treated as a(n):

Accepted Answer

A)  period cost 
B)  product cost 
C)  direct cost 
D)  both A and C are correct 
A)  period cost 
B)  product cost 
C)  direct cost 
D)  both A and C are correct

Question 13

The cost of a manufactured product generally consists of which of the following costs?

Accepted Answer

A)  Direct materials cost and factory overhead cost 
B)  Direct labor cost and factory overhead cost 
C)  Direct labor cost, direct materials cost, and factory overhead cost 
D)  Direct materials cost and direct labor cost 
A)  Direct materials cost and factory overhead cost 
B)  Direct labor cost and factory overhead cost 
C)  Direct labor cost, direct materials cost, and factory overhead cost 
D)  Direct materials cost and direct labor cost

Question 14

Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a cake manufacturer.
1. _____ Frosting
2. _____ Depreciation on oven
3. _____ Wages of bakers
4. _____ Sprinkles for topping

Accepted Answer

1. Direct material
2

Question 15

Prime costs are the combination of direct materials and direct labor costs.

Accepted Answer

A) True 
 B)False

Question 16

Managerial information is for external as well as internal stakeholders.

Accepted Answer

A) True 
 B)False

Question 17

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 18

Factory overhead includes all manufacturing costs except direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following are basic phases of the management process?

Accepted Answer

A)  Supervising and directing 
B)  Decision making and supervising 
C)  Organizing and directing 
D)  Planning and controlling 
A)  Supervising and directing 
B)  Decision making and supervising 
C)  Organizing and directing 
D)  Planning and controlling

Question 20

Identify the following costs as a (a) product cost or (b) period cost for a cake factory.
1. _____ Frosting
2. _____ Baker's wages
3. _____ Advertising fees
4. _____ Transportation out

Accepted Answer

The answer of Identify the following costs as a (a)...

Differentiate between: a) direct materials versus indirect materials b) direct labor versus indirect labor

Product costs are not expensed until the product is sold.

Cost of Materials Used $45,000 Direct Labor costs $48,000 Factory Overhead $39,000 Work in Process, beg. $28,000 Work in Process, end. $18,000 Finished Goods,beg. $28,000 Finished Goods, end. $18,000 What is Cost of Goods Sold?

All of the following would be reported on the balance sheet as a current asset except:

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

Managerial accounting reports are prepared according to generally accepted accounting principles.

In the income statement of a manufacturing company, what replaces purchases in the cost of goods section of a retail company?

The vice presidents of production and sales and the controller hold line positions in most large organizations.

Indirect labor and indirect materials would be part of factory overhead.

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Rent expense on a factory building would be treated as a(n):

The cost of a manufactured product generally consists of which of the following costs?

Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a cake manufacturer. 1. ___ Frosting 2. _ Depreciation on oven 3. _ Wages of bakers 4. ___ Sprinkles for topping

Prime costs are the combination of direct materials and direct labor costs.

Managerial information is for external as well as internal stakeholders.

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory.

Factory overhead includes all manufacturing costs except direct materials and direct labor.

Which of the following are basic phases of the management process?

Identify the following costs as a (a) product cost or (b) period cost for a cake factory. 1. ___ Frosting 2. _ Baker's wages 3. _ Advertising fees 4. ___ Transportation out

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

Differentiate between: a) direct materials versus indirect materials b) direct labor versus indirect labor

Product costs are not expensed until the product is sold.

Cost of Materials Used $45,000 Direct Labor costs $48,000 Factory Overhead $39,000 Work in Process, beg. $28,000 Work in Process, end. $18,000 Finished Goods,beg. $28,000 Finished Goods, end. $18,000 What is Cost of Goods Sold?

All of the following would be reported on the balance sheet as a current asset except:

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

Managerial accounting reports are prepared according to generally accepted accounting principles.

In the income statement of a manufacturing company, what replaces purchases in the cost of goods section of a retail company?

The vice presidents of production and sales and the controller hold line positions in most large organizations.

Indirect labor and indirect materials would be part of factory overhead.

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Rent expense on a factory building would be treated as a(n):

The cost of a manufactured product generally consists of which of the following costs?

Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a cake manufacturer. 1. _____ Frosting 2. _____ Depreciation on oven 3. _____ Wages of bakers 4. _____ Sprinkles for topping

Prime costs are the combination of direct materials and direct labor costs.

Managerial information is for external as well as internal stakeholders.

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory.

Factory overhead includes all manufacturing costs except direct materials and direct labor.

Which of the following are basic phases of the management process?

Identify the following costs as a (a) product cost or (b) period cost for a cake factory. 1. _____ Frosting 2. _____ Baker's wages 3. _____ Advertising fees 4. _____ Transportation out

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

Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a cake manufacturer. 1. ___ Frosting 2. _ Depreciation on oven 3. _ Wages of bakers 4. ___ Sprinkles for topping

Identify the following costs as a (a) product cost or (b) period cost for a cake factory. 1. ___ Frosting 2. _ Baker's wages 3. _ Advertising fees 4. ___ Transportation out