Question 1

Match each description to the appropriate term (a-d). 
a) Direct materials 
b) Selling and administrative expense 
c) Factory overhead 
d) Direct labor

Accepted Answer

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

Question 2

Which of the following would be least likely to be considered a managerial accounting report?

Accepted Answer

A)  a report to analyze potential efficiencies and savings for the purchase of new production equipment 
B)  a schedule of total manufacturing costs incurred 
C)  a statement of cost of goods manufactured 
D)  a statement of stockholders' equity

Question 3

Managerial information is for external as well as internal stakeholders.

Accepted Answer

A) True 
 B)False

Question 4

An example of a sustainable business practice in transportation is crop rotation.

Accepted Answer

A) True 
 B)False

Question 5

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 6

Direct labor and direct materials are

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

Question 7

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 8

Match between columns
                        Premises: Depreciation expense-factory
Frosting
Factory rent
Depreciation expense-office
Baker's wages
Sprinkles for decoration (indirect material)
Salesman commissions
Cupcake mix

Accepted Answer

The Answer of Direct materials and Nonmanufacturing cost and Direct is...

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The Darwin Company reports the following information: 
Period costs are

Accepted Answer

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

Question 11

Factory overhead cost is sometimes referred to as factory burden.

Accepted Answer

A) True 
 B)False

Question 12

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Indirect labor and indirect materials are classified as

Accepted Answer

A)  factory overhead and product costs 
B)  factory overhead and period costs 
C)  operating costs and period costs 
D)  operating costs and product costs

Question 17

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 18

Laramie Technologies had the following data: 
Cost of materials used       $50,000 
Direct labor costs                56,000 
Factory overhead                28,000 
Work in process, beg.         45,000 
Work in process, end.         32,000 
Calculate the cost of goods manufactured.

Accepted Answer

The answer of Laramie Technologies had the following data: 
Cost...

Question 19

Indirect labor and indirect materials would be part of factory overhead.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 1: Introduction to Managerial Accounting

Match each description to the appropriate term (a-d). a) Direct materials b) Selling and administrative expense c) Factory overhead d) Direct labor

Which of the following would be least likely to be considered a managerial accounting report?

Managerial information is for external as well as internal stakeholders.

An example of a sustainable business practice in transportation is crop rotation.

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Direct labor and direct materials are

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Match the items below for a bakery to the type of cost (a-d).

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

The Darwin Company reports the following information: Period costs are

Factory overhead cost is sometimes referred to as factory burden.

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory.

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

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

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

Indirect labor and indirect materials are classified as

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

Laramie Technologies had the following data: Cost of materials used $50,000 Direct labor costs 56,000 Factory overhead 28,000 Work in process, beg. 45,000 Work in process, end. 32,000 Calculate the cost of goods manufactured.

Indirect labor and indirect materials would be part of factory overhead.

Which of the following statements is false?