Accounting Final Test 1 – Flashcards
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____ gathers, summarizes, and reports on the financial impact of changes to business operations.
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Managerial Accounting
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Which of the following is NOT one of the primary responsibilities of management?
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Adhering to GAAP
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The focus of management accounting is on
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Internal Reporting
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The treasurer and the controller report directly to the CFO
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True
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Trends to the modern business environment include a shift to the service economy and the rise of the global marketplace.
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True
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A wave of accounting scandals around the turn of the 21st century prompted which of the following?
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SOX
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Manufacturing companies usually have three types of inventory
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True
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Only manufacturing companies have finished goods inventory.
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True
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Which of the following types of companies has raw materials, work in process and finished goods inventory?
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Manufacturers
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Which type of company makes up the largest sector of the United States economy?
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Service Companies
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The balance sheet of a service company has
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Little or no Inventory
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American Eagle Outfitters classifies the denim jeans on the shelves at its retail location as:
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Merchandise inventory
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How would Chevrolet classify its partially completed vehicles?
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Work In progress
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A _________ company has the highest percentage of labor costs as compared to the other types of companies.
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Service
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Which of the following costs could be found in work in process inventory for a candy bar manufacturer?
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Assembly worker wages
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Which of the following is NOT an example of an indirect cost incurred in manufacturing automobiles?
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Cost of automobile engines
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A salesperson's salary would be classified as _________ when determining the cost of a manufactured product.
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A period cost
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All of the following would be considered a direct material for kitchen cabinet EXCEPT ...
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Sand Paper
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Which of the following is an example of overhead in a factory?
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Wages of factory maintenance personal
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Prime costs for Country Furniture Company Totaled ( Prime = direct labor and direct materials)
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$250,500
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Conversation costs for Country furniture company totaled (Conversion = direct labor and overhead)
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$415,500
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Indirect Materials and indirect labor are _________ for a manufactured product.
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Overhead and product costs
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Which of the following is an example of a period cost when manufacturing products?
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Advertising expense
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Costs that remain the same among alternatives are
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irrelevant costs
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Plowin' Supply plans to make 15,000 tractors at its plant. Fixed costs are $600,000 and variable costs are $200 per tractor. What is the average cost per tractor?
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$240
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An example of a fixed cost for a manufacturer would be which of the following?
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salary of a plant manager
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How do variable costs per unit behave?
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They remain the same throughout production levels within the relevant range
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Process costing is used by companies that produce large numbers of identical units of production in a continuous fashion.
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True
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Which product costing system would be better for custom-order products?
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Job costing system
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Which of the following industries would be most likely to use a job costing system?
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Commercial building construction
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When direct materials are requisitioned, they flow directly into
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work in process inventory
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Prayroll cost for factory employees who do not work directly on the product are considered
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manufacturing overhead
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An equal amount of manufacturing overhead should be allocated to each job
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false
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Manufacturing overhead is allocated on the basis of
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all of the listed choices
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Before the year began, Murphy Manufacturing estimated that manufacturing overhead for the year would be $175,500 and that 13,000 direct labor hours would be worked. Actual results for the year included the following:
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$13.50
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