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

Question 2

Jensen Company reports the following: 
-Jensen Company's product costs are

Accepted Answer

A) $995,000 
B) $920,000 
C) $825,000 
D) $770,000

Question 3

Match each description below to the appropriate phase of the manufacturing process (a-e).
-Used by management to develop the organization's objectives and goals
A)Planning
B)Directing
C)Controlling
D)Improving
E)Decision making

Accepted Answer

The answer of Match each description below to the appropriate...

Question 4

Prime costs are the combination of direct labor costs and factory overhead costs.

Accepted Answer

A) True 
 B)False

Question 5

Bartow Company manufactures bicycles. For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.a.Product
b.Period
-Accountant salaries

Accepted Answer

The answer of Bartow Company manufactures bicycles. For each of...

Question 6

Match the items below for a cake factory to the type of cost (a or b).
-Frosting
A)Product cost
B)Period cost

Accepted Answer

The answer of Match the items below for a cake...

Question 7

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

Accepted Answer

The answer of Differentiate between:
a. direct materials versus indirect materials
b....

Question 8

Which of the following costs are conversion costs?

Accepted Answer

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

Question 9

Match the items below to the appropriate term (a-d).
-Utilities incurred in the office
A)Direct materials
B)Selling and administrative expense
C)Factory overhead
D)Direct labor

Accepted Answer

The answer of Match the items below to the appropriate...

Question 10

Differentiate between period and product costs and include examples of each type of cost.

Accepted Answer

The answer of Differentiate between period and product costs and...

Question 11

Bartow Company manufactures bicycles. For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.a.Product
b.Period
-Tires for the bicycles

Accepted Answer

The answer of Bartow Company manufactures bicycles. For each of...

Question 12

Which of the following is most associated with financial accounting reports?

Accepted Answer

A) can have both objective and subjective information 
B) can be prepared periodically, or as needed 
C) prepared in accordance with GAAP 
D) can be prepared for the entity or segment

Question 13

Match the items below to the type of cost (a-c).
-Product assembly labor incurred
A)Direct
B)Indirect
C)Neither direct nor indirect

Accepted Answer

The answer of Match the items below to the type...

Question 14

Prime costs are

Accepted Answer

A) direct materials and factory overhead 
B) direct materials and direct labor 
C) direct labor and factory overhead 
D) period costs and factory overhead

Question 15

Match the items below for a cake factory to the type of cost (a or b).
-Transportation out
A)Product cost
B)Period cost

Accepted Answer

The answer of Match the items below for a cake...

Question 16

Match the items below to the type of cost (a or b).
-Direct materials used
A)Product cost
B)Period cost

Accepted Answer

The answer of Match the items below to the type...

Question 17

Match each description below to the appropriate phase of the manufacturing process (a-e).
-Managers must decide how to respond to unfavorable performances
A)Planning
B)Directing
C)Controlling
D)Improving
E)Decision making

Accepted Answer

The answer of Match each description below to the appropriate...

Question 18

If the cost of a direct material is a small portion of total production cost, it may be classified as part of

Accepted Answer

A) direct labor cost 
B) selling and administrative costs 
C) miscellaneous costs 
D) factory overhead cost

Question 19

Match the items below to the type of cost (a or b).
-Depreciation on factory machinery
A)Product cost
B)Period cost

Accepted Answer

The answer of Match the items below to the type...

Question 20

Labor costs that are directly traceable to the product are part of factory overhead.

Accepted Answer

A) True 
 B)False

Exam 15: Introduction to Managerial Accounting

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

Jensen Company reports the following: -Jensen Company's product costs are

Match each description below to the appropriate phase of the manufacturing process (a-e). -Used by management to develop the organization's objectives and goals A)Planning B)Directing C)Controlling D)Improving E)Decision making

Prime costs are the combination of direct labor costs and factory overhead costs.

Bartow Company manufactures bicycles. For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.a.Product b.Period -Accountant salaries

Match the items below for a cake factory to the type of cost (a or b). -Frosting A)Product cost B)Period cost

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

Which of the following costs are conversion costs?

Match the items below to the appropriate term (a-d). -Utilities incurred in the office A)Direct materials B)Selling and administrative expense C)Factory overhead D)Direct labor

Differentiate between period and product costs and include examples of each type of cost.

Bartow Company manufactures bicycles. For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.a.Product b.Period -Tires for the bicycles

Which of the following is most associated with financial accounting reports?

Match the items below to the type of cost (a-c). -Product assembly labor incurred A)Direct B)Indirect C)Neither direct nor indirect

Prime costs are

Match the items below for a cake factory to the type of cost (a or b). -Transportation out A)Product cost B)Period cost

Match the items below to the type of cost (a or b). -Direct materials used A)Product cost B)Period cost

Match each description below to the appropriate phase of the manufacturing process (a-e). -Managers must decide how to respond to unfavorable performances A)Planning B)Directing C)Controlling D)Improving E)Decision making

If the cost of a direct material is a small portion of total production cost, it may be classified as part of

Match the items below to the type of cost (a or b). -Depreciation on factory machinery A)Product cost B)Period cost

Labor costs that are directly traceable to the product are part of factory overhead.