Question 1

For a manufacturing firm, cycle time may be computed as process time + inspection time + move time - wait time.

Accepted Answer

A) True 
 B)False

Question 2

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 3

____________________ inventory consists of products in the process of being manufactured but not yet complete.

Accepted Answer

Goods in p

Question 4

Expenditures that flow directly to the current income statement and are not reported as assets are ___________________ costs.

Accepted Answer

The answer of Expenditures that flow directly to the current...

Question 5

The process of identifying costs as direct or indirect is referred to as classifying costs by ____________.

Accepted Answer

The answer of The process of identifying costs as direct...

Question 6

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 7

One difference between financial and managerial accounting is that the external users that use financial information must plan a company's future, but the internal users of managerial accounting information generally must decide whether to invest in or lend to a company.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is never included in direct materials costs?

Accepted Answer

A)  Invoice costs of direct materials. 
B)  Outgoing delivery charges. 
C)  Materials storage costs. 
D)  Materials handling costs. 
E)  All of these are direct material costs. 
A)  Invoice costs of direct materials. 
B)  Outgoing delivery charges. 
C)  Materials storage costs. 
D)  Materials handling costs. 
E)  All of these are direct material costs.

Question 9

Calculate the cost of goods sold using the following information:

Accepted Answer

A)  $680,500. 
B)  $701,900. 
C)  $687,100. 
D)  $674,600. 
E)  $772,600. 
A)  $680,500. 
B)  $701,900. 
C)  $687,100. 
D)  $674,600. 
E)  $772,600.

Question 10

Match the following terms with the appropriate definition.

Accepted Answer

The answer of Match the following terms with the appropriate...

Question 11

All of the following statements regarding manufacturing costs are except:

Accepted Answer

A)  Direct material costs that increase with production are called variable costs. 
B)  The reporting of fixed and variable costs separately is not helpful to managers in analyzing cost behavior. 
C)  When overhead costs vary with production, they are called variable costs. 
D)  When overhead costs don't vary with production, they are called fixed overhead. 
E)  Overhead can be both variable and fixed. 
A)  Direct material costs that increase with production are called variable costs. 
B)  The reporting of fixed and variable costs separately is not helpful to managers in analyzing cost behavior. 
C)  When overhead costs vary with production, they are called variable costs. 
D)  When overhead costs don't vary with production, they are called fixed overhead. 
E)  Overhead can be both variable and fixed.

Question 12

An out-of-pocket cost requires a future cash outlay and is relevant for decision making.

Accepted Answer

A) True 
 B)False

Question 13

Harv's Sound Systems produces speakers for movie theaters that sell for $1,200 each. Listed below are selected cost items for the production of 600 units. Classify each cost as either fixed or variable, and either a product or a period cost.

Accepted Answer

The answer of Harv's Sound Systems produces speakers for movie...

Question 14

With respect to cycle time, companies strive to reduce non-value added time in order to improve ________________________.

Accepted Answer

The answer of With respect to cycle time, companies strive...

Question 15

Using the information below, compute the manufacturing cycle time:

Accepted Answer

A)  7.5 hours. 
B)  6.5 hours. 
C)  8.0 hours. 
D)  80.0 hours. 
E)  7.1 hours. 
A)  7.5 hours. 
B)  6.5 hours. 
C)  8.0 hours. 
D)  80.0 hours. 
E)  7.1 hours.

Question 16

Products that are in the process of being manufactured but are not yet complete are called:

Accepted Answer

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

Question 17

Calculate Cost of Goods Sold for the following two companies:

Accepted Answer

The answer of Calculate Cost of Goods Sold for the...

Question 18

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 19

The Institute of Management Accountants Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

Accepted Answer

A) True 
 B)False

Question 20

A manufacturing statement is also known as a schedule or listing of the:

Accepted Answer

A)  Raw materials processed. 
B)  Factory supplies used. 
C)  Cost of goods manufactured. 
D)  Total finished goods. 
E)  Cost of goods sold. 
A)  Raw materials processed. 
B)  Factory supplies used. 
C)  Cost of goods manufactured. 
D)  Total finished goods. 
E)  Cost of goods sold.

Exam 18: Managerial Accounting Concepts and Principles

For a manufacturing firm, cycle time may be computed as process time + inspection time + move time - wait time.

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

____________________ inventory consists of products in the process of being manufactured but not yet complete.

Expenditures that flow directly to the current income statement and are not reported as assets are ___________________ costs.

The process of identifying costs as direct or indirect is referred to as classifying costs by ____________.

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.

One difference between financial and managerial accounting is that the external users that use financial information must plan a company's future, but the internal users of managerial accounting information generally must decide whether to invest in or lend to a company.

Which of the following is never included in direct materials costs?

Calculate the cost of goods sold using the following information:

Match the following terms with the appropriate definition.

All of the following statements regarding manufacturing costs are except:

An out-of-pocket cost requires a future cash outlay and is relevant for decision making.

Harv's Sound Systems produces speakers for movie theaters that sell for $1,200 each. Listed below are selected cost items for the production of 600 units. Classify each cost as either fixed or variable, and either a product or a period cost.

With respect to cycle time, companies strive to reduce non-value added time in order to improve ________________________.

Using the information below, compute the manufacturing cycle time:

Products that are in the process of being manufactured but are not yet complete are called:

Calculate Cost of Goods Sold for the following two companies:

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

The Institute of Management Accountants Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

A manufacturing statement is also known as a schedule or listing of the:

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

Long-Term Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

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

Filters