Question 1

Which of the following is an example of direct materials cost for an automobile manufacturer?

Accepted Answer

A)  Cost of oil lubricants for factory machinery 
B)  Cost of wages of assembly worker 
C)  Salary of production supervisor 
D)  Cost of interior upholstery 
A)  Cost of oil lubricants for factory machinery 
B)  Cost of wages of assembly worker 
C)  Salary of production supervisor 
D)  Cost of interior upholstery

Question 2

Use the correct number to designate each item below:
1) direct materials
2) selling and administrative expense
3) factory overhead
4) direct labor

Accepted Answer

a) 3
b) 2
c) 3
d) 3

Question 3

Direct labor and direct materials are classified as:

Accepted Answer

A)  product costs and expensed when the goods are sold 
B)  product costs and expensed when incurred 
C)  period costs and expensed when incurred 
D)  period costs and expensed when the goods are sold 
A)  product costs and expensed when the goods are sold 
B)  product costs and expensed when incurred 
C)  period costs and expensed when incurred 
D)  period costs and expensed when the goods are sold

Question 4

What term is used to refer to the cost of changing direct materials into a finished manufactured product?

Accepted Answer

A)  Factory overhead cost 
B)  Period cost 
C)  Conversion cost 
D)  Direct labor cost 
A)  Factory overhead cost 
B)  Period cost 
C)  Conversion cost 
D)  Direct labor cost

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Product costs

Accepted Answer

A)  appear only on the balance sheet 
B)  appear only on the income statement 
C)  are expensed as costs are incurred for direct labor, direct material and factory overhead 
D)  appear on both the income statement and balance sheet 
A)  appear only on the balance sheet 
B)  appear only on the income statement 
C)  are expensed as costs are incurred for direct labor, direct material and factory overhead 
D)  appear on both the income statement and balance sheet

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

All of the following are ways that managers use managerial information except

Accepted Answer

A)  to evaluate the company's stock performance 
B)  to evaluate the performance of a company's operations 
C)  to support long-term planning decisions 
D)  to determine the cost of manufacturing a product 
A)  to evaluate the company's stock performance 
B)  to evaluate the performance of a company's operations 
C)  to support long-term planning decisions 
D)  to determine the cost of manufacturing a product

Question 10

The payment of dividends is an example of a cost.

Accepted Answer

A) True 
 B)False

Question 11

Magnus Industries has the following data:
   Show how you would calculate Raw Materials Used.

Accepted Answer

$75,000 + $40,000 -

Question 12

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

Accepted Answer

A)  chief accounting officer 
B)  controller 
C)  chairman of the board 
D)  chief executive officer 
A)  chief accounting officer 
B)  controller 
C)  chairman of the board 
D)  chief executive officer

Question 13

Indirect labor would be included in factory overhead.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

The Sharpe Company reports the following information for 2015:   Determine period costs for 2015.

Accepted Answer

A)  $24,500 
B)  $30,300 
C)  $29,200 
D)  $35,000 
A)  $24,500 
B)  $30,300 
C)  $29,200 
D)  $35,000

Question 18

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

Accepted Answer

A)  cost of goods sold 
B)  materials 
C)  work in process 
D)  finished goods 
A)  cost of goods sold 
B)  materials 
C)  work in process 
D)  finished goods

Question 19

Which of the following statements is false?

Accepted Answer

A)  There is no overlap between financial and managerial accounting. 
B)  Managerial accounting sometimes relies on past information. 
C)  Managerial accounting does not need to conform to GAAP 
D)  Financial accounting must conform to GAAP. 
A)  There is no overlap between financial and managerial accounting. 
B)  Managerial accounting sometimes relies on past information. 
C)  Managerial accounting does not need to conform to GAAP 
D)  Financial accounting must conform to GAAP.

Question 20

Only the value of the inventory that is sold will appear in the income statement.

Accepted Answer

A) True 
 B)False

Exam 18: Managerial Accounting Concepts and Principles

Which of the following is an example of direct materials cost for an automobile manufacturer?

Use the correct number to designate each item below: 1) direct materials 2) selling and administrative expense 3) factory overhead 4) direct labor

Direct labor and direct materials are classified as:

What term is used to refer to the cost of changing direct materials into a finished manufactured product?

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

Product costs

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

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

All of the following are ways that managers use managerial information except

The payment of dividends is an example of a cost.

Magnus Industries has the following data: Show how you would calculate Raw Materials Used.

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

Indirect labor would be included in factory overhead.

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

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

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

The Sharpe Company reports the following information for 2015: Determine period costs for 2015.

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

Which of the following statements is false?

Only the value of the inventory that is sold will appear in the income statement.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Filters