Question 1

The manufacturing statement is also known as ____________________________.

Accepted Answer

Schedule of manufacturing activities, or schedule of cost of goods manufactured

Question 2

The Malcolm Baldridge Award was established by:

Accepted Answer

A)  The United Nations. 
B)  The U. S. Chamber of Commerce. 
C)  The Malcolm Baldridge Foundation. 
D)  The U. S. Congress. 
E)  The SEC. 
A)  The United Nations. 
B)  The U. S. Chamber of Commerce. 
C)  The Malcolm Baldridge Foundation. 
D)  The U. S. Congress. 
E)  The SEC. D

Question 3

Factory overhead costs normally include all of the following except:

Accepted Answer

A)  Indirect labor costs. 
B)  Indirect material costs. 
C)  Selling costs. 
D)  Machinery oil. 
E)  Factory rent. 
A)  Indirect labor costs. 
B)  Indirect material costs. 
C)  Selling costs. 
D)  Machinery oil. 
E)  Factory rent. C

Question 4

The main difference between the income statement of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.

Accepted Answer

A) True 
 B)False

Question 5

Cost concepts such as variable, fixed, mixed, direct and indirect apply only to manufacturers and not to service companies.

Accepted Answer

A) True 
 B)False

Question 6

Under a just-in-time manufacturing system, large quantities of inventory are accumulated throughout the factory to be certain that needed components are available each time that they are needed.

Accepted Answer

A) True 
 B)False

Question 7

Managerial accounting information:

Accepted Answer

A)  Is used mainly by external users. 
B)  Involves gathering information about costs for planning and control decisions. 
C)  Is generally the only accounting information available to managers. 
D)  Can be used for control purposes but not for planning purposes. 
E)  Has little to do with controlling costs. 
A)  Is used mainly by external users. 
B)  Involves gathering information about costs for planning and control decisions. 
C)  Is generally the only accounting information available to managers. 
D)  Can be used for control purposes but not for planning purposes. 
E)  Has little to do with controlling costs.

Question 8

Juliet Corporation has accumulated the following accounting data for the year: The cost of goods manufactured for the year is:

Accepted Answer

A)  $200 
B)  $1,000 
C)  $5,000 
D)  $6,400 
E)  $8,200 
A)  $200 
B)  $1,000 
C)  $5,000 
D)  $6,400 
E)  $8,200

Question 9

Expenditures incurred in the process of converting raw materials to finished goods, that include direct labor and factory overhead are known as _________________________.

Accepted Answer

The answer of Expenditures incurred in the process of converting...

Question 10

Expenditures directly associated with the manufacture of finished goods that include direct materials and direct labor are _____________________ costs.

Accepted Answer

The answer of Expenditures directly associated with the manufacture of...

Question 11

The Ticky Company manufactures tacks. Costs for September were direct labor, $84,000; indirect labor, $36,700; direct materials, $55,900; factory maintenance, $4,800; factory utilities, $3,200; and insurance on plant and equipment, $700. What is Ticky Company's factory overhead for September?

Accepted Answer

The answer of The Ticky Company manufactures tacks. Costs for...

Question 12

_____________________ are beliefs that distinguish right from wrong.

Accepted Answer

The answer of _____________________ are beliefs that distinguish right from...

Question 13

Ringle Company is a manufacturer of compact disks (CDs). Place each of the following costs in the appropriate column.

Accepted Answer

The answer of Ringle Company is a manufacturer of compact...

Question 14

Four factors come together in the manufacturing process: beginning goods in process inventory, direct materials, direct labor, and factory overhead.

Accepted Answer

A) True 
 B)False

Question 15

Products that have been completed and are ready to be sold by the manufacturer are called:

Accepted Answer

A)  Finished goods inventory. 
B)  Goods in process inventory. 
C)  Raw materials inventory. 
D)  Cost of goods sold. 
E)  Factory supplies. 
A)  Finished goods inventory. 
B)  Goods in process inventory. 
C)  Raw materials inventory. 
D)  Cost of goods sold. 
E)  Factory supplies.

Question 16

Braintree Ltd. manufactures coats in a large facility. One area in the production facility is an underused storage space. The company has twice turned down offers to lease out this facility. This situation is an example of what costing concept? How should Braintree handle the costing for this situation?

Accepted Answer

The situation raises an opportunity cost

Question 17

A _________________ cost changes in proportion to changes in the volume of activity.

Accepted Answer

The answer of A _________________ cost changes in proportion to...

Question 18

Define and contrast period costs and product costs. How are they reported in the financial statements of a manufacturing company?

Accepted Answer

Period costs are the costs that are char

Question 19

Agent S Incorporated produces home security systems. The company received and produced an order for 658 systems last month. The following information is available regarding this order.
$\begin{array}{ll}
\text { Process time } & 4.2 \text { days } \
\text { Inspection time } & 1.1 \text { days } \
\text { Move time } & 1.5 \text { days } \
\text { Wait time } & 3.7 \text { days }
\end{array}$
(a) Compute the company's manufacturing cycle time.
(b) Compute the company's manufacturing cycle efficiency.
(c) The management of Agent S wishes to improve their manufacturing cycle efficiency to 50%. They feel the company's inspection time can be shortened considerably, but that process, move and wait times cannot be reduced below the times given above. Will Agent S meet its goal by focusing only on inspection time? Explain and support your answer.

Accepted Answer

@#IMG-DLM& @#IMG-DLM& 
(c) Agent S, Incorporated will not me

Question 20

Continuous improvement:

Accepted Answer

A)  Is a measure of profits. 
B)  Is a measure of costs. 
C)  Rejects the notion of "good enough." 
D)  Is not applicable to most businesses. 
E)  Is possible only in service businesses. 
A)  Is a measure of profits. 
B)  Is a measure of costs. 
C)  Rejects the notion of "good enough." 
D)  Is not applicable to most businesses. 
E)  Is possible only in service businesses.

Exam 14: Managerial Accounting Concepts and Principles

The manufacturing statement is also known as ____________________________.

The Malcolm Baldridge Award was established by:

Factory overhead costs normally include all of the following except:

The main difference between the income statement of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.

Cost concepts such as variable, fixed, mixed, direct and indirect apply only to manufacturers and not to service companies.

Under a just-in-time manufacturing system, large quantities of inventory are accumulated throughout the factory to be certain that needed components are available each time that they are needed.

Managerial accounting information:

Juliet Corporation has accumulated the following accounting data for the year: The cost of goods manufactured for the year is:

Expenditures incurred in the process of converting raw materials to finished goods, that include direct labor and factory overhead are known as _________________________.

Expenditures directly associated with the manufacture of finished goods that include direct materials and direct labor are _____________________ costs.

The Ticky Company manufactures tacks. Costs for September were direct labor, $84,000; indirect labor, $36,700; direct materials, $55,900; factory maintenance, $4,800; factory utilities, $3,200; and insurance on plant and equipment, $700. What is Ticky Company's factory overhead for September?

_____________________ are beliefs that distinguish right from wrong.

Ringle Company is a manufacturer of compact disks (CDs). Place each of the following costs in the appropriate column.

Four factors come together in the manufacturing process: beginning goods in process inventory, direct materials, direct labor, and factory overhead.

Products that have been completed and are ready to be sold by the manufacturer are called:

A _________________ cost changes in proportion to changes in the volume of activity.

Define and contrast period costs and product costs. How are they reported in the financial statements of a manufacturing company?

Continuous improvement:

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounts and Notes Receivable

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Corporate Reporting and Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Decentralization and Performance Evaluation

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Investments and International Operations

Accounting for Partnerships

Appendix : Accounting With Special Journals

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