question

If the cost of direct materials is a small portion of total production cost, it may be classified as part of: If the cost of direct materials is a small portion of total production cost, it may be classified as part of: a. direct labor cost b. selling and administrative costs c. miscellaneous costs

answer

factory overhead cost

question

In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT: a. provide objective measures of past operations and subjective estimates about future decisions b. be prepared in accordance with generally accepted accounting principles c. be provided at any time management needs information d. be prepared to report information for any unit of the business to support decision making

answer

be prepared in accordance with generally accepted accounting principles

question

Which of the following is most associated with managerial accounting? a. Must follow GAAP b. May rely on estimates and forecasts c. Is prepared for users outside the organization. d. Always reports on the entire entity

answer

May rely on estimates and forecasts

question

Which of the following is most associated with financial accounting? 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

answer

Prepared in accordance with GAAP

question

In most business organizations, the chief management accountant is called the: a. chief accounting officer b. controller c. chairman of the board d. chief executive officer

answer

Controller

question

The controller's staff often consists of several management accountants. All of the following would most likely be on the controller's staff EXCEPT: a. general accountants b. budgets and budget analysts c. investments and shareholder relations managers d. cost accountants

answer

investments and shareholder relations managers

question

Managerial accounting a. is prepared according to GAAP. b. is prepared according to management needs. c. is prepared periodically only. d. is related to the entire business entity only.

answer

is prepared according to management needs

question

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business? a. Investors b. Managers c. Employees d. Customers

answer

Managers

question

Which of the following are basic phases of the management process? a. Supervising and directing b. Decision making and supervising c. Organizing and Which directing d. Planning and controlling

answer

Planning and controlling

question

What term is used to describe the process of monitoring operating results and comparing actual results with the expected results? a. Improving b. Controlling c. Directing d. Planning

answer

Controlling

question

What term is used to describe the process of developing the organization's objectives and translating those into course of action? a. Supervising b. Planning c. Improving d. Decision making

answer

Planning

question

Which of the following is the principle reason for preparing managerial accounting reports? a. Usefulness to management b. Cost of preparation c. Clarity d. GAAP

answer

Usefulness to management

question

Which of the following is not a characteristic of useful managerial accounting reports? a. Accuracy b. GAAP c. historical and estimated data d. reports prepared as needed

answer

GAAP

question

Compute conversion costs given the following data: Direct Materials, $452,700; Direct Labor, $186,300; Factory Overhead, $175,600; and Selling Expenses, $45,290. a. $639,000 b. $175,600 c. $816,600 d. $361,900

answer

$361,9000

question

Which of the following is false in regards to direct materials for an auto manufacturer? a. Steel would probably be a direct material. b. Upholstery fabric would probably be a direct material c. Oil to lubricate factory machines would not be a direct material. d. Small plastic clips to hold on door panels, that become part of the auto, must be accounted for as direct materials.

answer

Small plastic clips to hold on door panels, that become part of the auto, must be accounted for as direct materials.

question

The cost of a manufactured product generally consists of which of the following costs? a. Direct materials cost and factory overhead cost b. Direct labor cost and factory overhead cost c. Direct labor cost, direct materials cost, and factory overhead cost d. Direct materials cost and direct labor cost

answer

Direct labor cost, direct materials cost, and factory overhead cost

question

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished product is classified as:

answer

direct labor cost

question

Which of the following is an example of direct labor cost for an airplane manufacturer?

answer

Cost of wages of assembly worker

question

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as:

answer

factory overhead cost

question

Another term often used to refer to factory overhead is:

answer

factory burden

question

Which of the following costs are referred to as conversion costs?

answer

Direct labor cost and factory overhead cost

question

What term is used to refer to the cost of changing direct materials into a finished manufactured product?

answer

Conversion cost

question

Which of the following items would not be classified as part of factory overhead?

answer

Direct Labor used

question

Which of the following is considered a part of factory overhead cost?

answer

Depreciation of factory buildings

question

Which of the following manufacturing costs is an indirect cost of producing a product?

answer

Oil lubricants used for factory machinery

question

Prime costs are

answer

direct materials and direct labor

question

Conversion costs are a. direct materials and direct labor b. direct materials and factory overhead c. factory overhead and direct labor d. direct materials and indirect labor

answer

factory overhead and direct labor

question

Which of the following is not a prime cost? a. Supervisor's wages b. Direct labor wages c. Machine operator wages d. Assembly line wages

answer

Supervisor's wages

question

The following are all product costs except a. Direct materials b. Sales and administrative expenses c. Direct labor d. Factory overhead

answer

Sales and administrative expenses

question

Which one of the following will not be found on the balance sheet of a manufacturing company? a. cost of goods sold b. materials c. work in process d. finished goods

answer

Cost of goods sold

question

In the income statement of a manufacturing company, what replaces purchases in the cost of goods section of a retail company? a. Finished goods b. Cost of merchandise available c. Cost of goods manufactured d. Work in process completed

answer

Cost of goods manufactured

question

What is the purpose of the Statement of Cost of Goods Manufactured? a. to determine the ending materials inventory b. to determine the ending work in process inventory c. to determine the amounts transferred to finished goods d. all of the answers are true

answer

all of the answers are true

question

Which of the following accounts will be found on the income statement? a. inventory b. work in process c. finished goods d. cost of goods sold

answer

Cost of goods sold

question

All of the following are ways that managers use managerial information except: a. to evaluate the company's stock performance b. to evaluate the performance of a company's operations c. to support long-term planning decisions d. to determine the cost of manufacturing a product

answer

to evaluate the company's stock performance

question

Cost of Materials Used $40,000 Direct Labor costs $55,000 Factory Overhead $32,000 Work in Process, beg. $28,000 Work in Process, end. $18,000 What is Cost of Goods Manufactured? a. $173,000 b. $97,000 c. $117,000 d. $137,000

answer

137,000

question

Beginning Raw Materials Inventory $75,000 Materials Purchased $20,000 Ending Raw Materials Inventory $30,000 What is the amount of raw materials used? a. $25,000 b. $45,000 c. $65,000 d. $20,000

answer

65,000

question

A company sells goods for $300,000 that cost $140,000 to manufacture. Which statement(s) are true? a. The company will recognize sales on the balance sheet of $300,000. b. The company will recognize $160,000 gross profit on the balance sheet. c. The company will decrease finished goods by $140,000. d. All of the above are true.

answer

The company will decrease finished goods by $140,000.

question

Product costs: a. appear only on the balance sheet b. appear only on the income statement c. are expensed as costs are incurred for direct labor, direct material and factory overhead d. appear on both the income statement and balance sheet

answer

appear on both the income statement and balance sheet

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