Question 1

Adopting a lean business model should have no effect on cost in a modern manufacturing environment.

Accepted Answer

A) True 
 B)False

Question 2

Information for Reedy Manufacturing is presented below. Compute both the cost of goods manufactured and the cost of goods sold for Reedy Manufacturing.

Accepted Answer

The answer of Information for Reedy Manufacturing is presented below....

Question 3

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

Accepted Answer

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

Question 4

Indirect labor refers to the cost of the workers whose efforts are directly traceable to specific units or batches of product.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Use the following data to determine the cost of goods manufactured.

Accepted Answer

A)  $102,000. 
B)  $110,100. 
C)  $96,600. 
D)  $113,700. 
E)  $100,200. 
A)  $102,000. 
B)  $110,100. 
C)  $96,600. 
D)  $113,700. 
E)  $100,200.

Question 7

The total cost of goods completed during the accounting period for a manufacturer is called:

Accepted Answer

A)  Ending finished goods inventory. 
B)  Total manufacturing costs. 
C)  Ending goods in process inventory. 
D)  Cost of goods manufactured. 
E)  Cost of goods sold. 
A)  Ending finished goods inventory. 
B)  Total manufacturing costs. 
C)  Ending goods in process inventory. 
D)  Cost of goods manufactured. 
E)  Cost of goods sold.

Question 8

Using the information below for Hardy Company; determine the manufacturing costs added during the current year:

Accepted Answer

A)  $12,000. 
B)  $16,100. 
C)  $17,100. 
D)  $18,100. 
E)  $13,600 
A)  $12,000. 
B)  $16,100. 
C)  $17,100. 
D)  $18,100. 
E)  $13,600

Question 9

Financial accounting relies on accepted principles that are enforced through an extensive set of rules and guidelines; on the other hand, managerial accounting systems are flexible.

Accepted Answer

A) True 
 B)False

Question 10

_____________________ inventory consists of goods a company acquires to use in making products.

Accepted Answer

The answer of _____________________ inventory consists of goods a company...

Question 11

A management concept that applies quality improvement to all aspects of business activities is called:

Accepted Answer

A)  Continuous operations. 
B)  Customer orientation. 
C)  Just-in-time. 
D)  Theory of constraints. 
E)  Total quality management. 
A)  Continuous operations. 
B)  Customer orientation. 
C)  Just-in-time. 
D)  Theory of constraints. 
E)  Total quality management.

Question 12

_______________ are beliefs that distinguish right from wrong.

Accepted Answer

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

Question 13

An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:

Accepted Answer

A)  Continuous improvement. 
B)  Customer orientation. 
C)  Just-in-time. 
D)  Theory of constraints. 
E)  Total quality measurement. 
A)  Continuous improvement. 
B)  Customer orientation. 
C)  Just-in-time. 
D)  Theory of constraints. 
E)  Total quality measurement.

Question 14

Bourne Crafts manufactures specialty key chains for tourist attractions. On January 1, the firm had 200 souvenir attraction disks used in the production of the chains that cost $3 each; and 600 completed key chains that cost $6 each. During the year Bourne Crafts purchased 1,500 souvenir disks costing $3 each and produced 1,100 key chains. Compute the total cost of raw materials inventory at December 31.

Accepted Answer

The answer of Bourne Crafts manufactures specialty key chains for...

Question 15

Use the following information to compute the cost of goods manufactured:

Accepted Answer

A)  $36,650. 
B)  $30,950. 
C)  $30,650. 
D)  $30,350. 
E)  $31,650. 
A)  $36,650. 
B)  $30,950. 
C)  $30,650. 
D)  $30,350. 
E)  $31,650.

Question 16

An employer is unsure if an act by an employee constitutes fraud. What are some of the indications that an employee is involved in a fraud scheme?

Accepted Answer

All fraud is done to provide d

Question 17

Expenditures necessary and integral to the manufacture of finished products are ________________ costs.

Accepted Answer

The answer of Expenditures necessary and integral to the manufacture...

Question 18

The following costs are incurred by Estes Manufacturing Co. Classify each cost item as either a period cost or a product cost. If the cost is a product cost, identify it as a prime and/or conversion cost.

Accepted Answer

The answer of The following costs are incurred by Estes...

Question 19

Horton Foods bakes and sells 1,000 dozen bagels each week to food service operations. Among the costs are bakers' salaries, $24,000; production management salaries, $16,000; production equipment operating costs, $32,000; and flour and ingredient costs, $15,000. Using this information, compute: (a) prime costs and (b) conversion costs

Accepted Answer

To compute the prime costs and conversio

Question 20

Raw materials inventory includes only direct materials.

Accepted Answer

A) True 
 B)False

Exam 18: Managerial Accounting Concepts and Principles

Adopting a lean business model should have no effect on cost in a modern manufacturing environment.

Information for Reedy Manufacturing is presented below. Compute both the cost of goods manufactured and the cost of goods sold for Reedy Manufacturing.

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

Indirect labor refers to the cost of the workers whose efforts are directly traceable to specific units or batches of product.

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

Use the following data to determine the cost of goods manufactured.

The total cost of goods completed during the accounting period for a manufacturer is called:

Using the information below for Hardy Company; determine the manufacturing costs added during the current year:

Financial accounting relies on accepted principles that are enforced through an extensive set of rules and guidelines; on the other hand, managerial accounting systems are flexible.

_____________________ inventory consists of goods a company acquires to use in making products.

A management concept that applies quality improvement to all aspects of business activities is called:

_______________ are beliefs that distinguish right from wrong.

An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:

Use the following information to compute the cost of goods manufactured:

An employer is unsure if an act by an employee constitutes fraud. What are some of the indications that an employee is involved in a fraud scheme?

Expenditures necessary and integral to the manufacture of finished products are ________________ costs.

The following costs are incurred by Estes Manufacturing Co. Classify each cost item as either a period cost or a product cost. If the cost is a product cost, identify it as a prime and/or conversion cost.

Raw materials inventory includes only direct materials.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Job Order Cost Accounting

Process Cost Accounting

Cost Allocation and Performance Measurement

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Capital Budgeting and Managerial Decisions

Time Value of Money

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