Question 1

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

Accepted Answer

Cost of wages of assembly worker

Question 2

Which of the following is an example of a factory overhead cost?

Accepted Answer

Factory heating and lighting cost

Question 3

Which one of the following will not be found on the balance sheet of a manufacturing company?

Accepted Answer

Cost of goods sold

Question 4

All of the following are ways that managers use managerial information except:

Accepted Answer

To evaluate the company\'s stock performance.

Question 5

Product costs

Accepted Answer

Appear on both the income statement and balance sheet.

Question 6

An example of a period cost is:

Accepted Answer

Advertising expense.

Question 7

Factory overhead includes:

Accepted Answer

Indirect labor and indirect materials.

Question 8

Which of the following is the correct formula for determining cost of goods manufactured?

Accepted Answer

Beginning work in process inventory + total manufacturing costs - ending work in process inventory.

Question 9

Which of the following positions would have salaries or wages that are classified as a direct labor cost by a baking company?

Accepted Answer

Baker.

Question 10

Managerial decisions will include all except one of the following:

Accepted Answer

Setting of capital stock prices.

Question 11

Which of the following positions would have salaries or wages that are classified as a factory overhead cost by a baking company?

Accepted Answer

Factory supervisor.

Question 12

Managerial accounting information uses

Accepted Answer

Historical and estimated data.

Question 13

Managerial accounting information can be used for:

Accepted Answer

Determining the effect of changes in product costs.,Determining the selling price AND Evaluating product costs.

Question 14

A company will use managerial reports to:

Accepted Answer

Determine product selling prices, Reduce direct labor costs and Determine spoilage.

Question 15

Which of the following is one of the five phases in the management process?

Accepted Answer

Decision making

Question 16

The managerial process that monitors operations and compares actual results to expected results is the __________ phase.

Accepted Answer

Controlling

Question 17

Which of the following accounts will never be included in the inventory accounts on the balance sheet for a baking company?

Accepted Answer

President\'s salary.

Question 18

A company will use managerial reports to:

Accepted Answer

Consider computerized manufacturing processes, Estimate product costs and Determine actual product costs.

Question 19

Which of the following would be classified as a factory overhead cost by a baking company?

Accepted Answer

Depreciation factory equipment.

Question 20

Which of the following is not one of the five phases in the management process?

Accepted Answer

Analyzing.

Question 21

Managerial reports will include all of the following except:

Accepted Answer

Income tax expense

Question 22

Which of the following would probably not be determined using managerial accounting reports?

Accepted Answer

Earnings per share.

Question 23

The following are considered manufacturing costs except:

Accepted Answer

Selling and administrative expenses

Question 24

A balance sheet for a manufacturing company includes all of the following inventories except:

Accepted Answer

Direct labor.

Question 25

Management develops the company\'s objectives (goals) in the __________ phase.

Accepted Answer

Planning

Question 26

Financial accountants provide information to:

Accepted Answer

creditors, general public and stockholders

Question 27

Which of the following is not a characteristic of a job order costing system?

Accepted Answer

It accumulates cost for each department within the factory

Question 28

Job order costing and process costing are

Accepted Answer

Cost accounting systems

Question 29

Which of the following is the correct flow of manufacturing costs?

Accepted Answer

Raw materials, work in process, finished goods, cost of goods sold.

Question 30

The source of the data for debiting Work-in-Process for direct materials is the:

Accepted Answer

Materials requisition

Question 31

The entry to record the flow of direct labor costs into production in a job order cost accounting system is:

Accepted Answer

Debit Work in Process, credit Wages Payable

Question 32

The recording of the jobs completed would include a credit to:

Accepted Answer

Work in Process.

Question 33

A widely used activity base for developing factory overhead rates in highly automated settings is:

Accepted Answer

Machine hours.

Question 34

The period costs of a textbook publisher would include:

Accepted Answer

Advertising expenses.

Question 35

Bar code scanners are now being used to track incoming materials and to electronically transmit this data. Scanners have replaced which of the following:

Accepted Answer

Receiving report.

Question 36

Which of the following would probably not be found in the accounting system of a service provider?

Accepted Answer

Finished jobs ledger

Question 37

A job order will be used by which of the following manufacturing companies?

Accepted Answer

Custom limousine factory.

Question 38

All of the following statements are true regarding cost accounting systems except:

Accepted Answer

A company must use either a job order cost system for all of its products/services or a process cost system for all of its products/services.

Question 39

A process cost system will be used by all of the following manufacturing companies except:

Accepted Answer

A custom sailboat factory.

Question 40

A service organization using a job order cost system will typically charge supplies and materials to:

Accepted Answer

The department using the supplies and include them in overhead costs.

Question 41

Job cost sheets can be used to determine

Accepted Answer

Product costs.

Question 42

Neon Lighting is comparing actual and applied overhead amounts at the end of the year. According to the factory overhead account, the account has a credit balance. What does this mean?

Accepted Answer

Applied costs are higher than actual costs.

Question 43

A job order costing system can be used to:

Accepted Answer

Control costs.

Question 44

In service companies, _________ is supported by a cost ledger with a job cost sheet for each client.

Accepted Answer

Work in Process

Question 45

A job order cost system can be used by a hospital to:

Accepted Answer

Charge patients with services provided.

Question 46

Which of the following is the flow of manufacturing costs?

Accepted Answer

Materials, work in process, finished goods, cost of goods sold.

Question 47

Job cost sheets can be used for:

Accepted Answer

Determining the accuracy of job quotes.   Determining quality issues.   Determining profits.

Question 48

For services, billing a customer must be done

Accepted Answer

In advance.  Once the work is completed.  At the end of the month.

Question 49

Which of the following products/services would most likely be accounted for using a job order cost system?

Accepted Answer

Audit.

Question 50

The manager of a company is analyzing direct labor and has found that the expenses are higher than expected. Which of the following could be the reason?

Accepted Answer

New employees unfamiliar with the process.  Inefficient use of time.  Higher hourly rates are being paid.

Question 51

The purpose of a cost accounting system is to:

Accepted Answer

Measure, record, and report product costs

Question 52

The job order cost system for a service business includes all of the following except:

Accepted Answer

Materials inventory.

Question 53

A hotel will use a job order cost system for which of the following expenses?

Accepted Answer

Room service.

Question 54

A cost accounting system that accumulates costs for each manufacturing department or process is called a:

Accepted Answer

Process cost system

Question 55

According to the just-in-time philosophy,

Accepted Answer

Employees should be expert at one function rather than be cross-trained for multiple functions.

Question 56

Which of the following products would use a process cost system?

Accepted Answer

Gasoline.

Question 57

Which of the following is not a way in which process and job order cost systems are similar?

Accepted Answer

Both must calculate equivalent units to calculate per unit costs.

Question 58

All of the following are true regarding a just-in-time manufacturing process except:

Accepted Answer

The product moves from process to process as each function or step is completed.

Question 59

Which of the following best describes the effect on direct labor when management adopts a just-in-time environment?

Accepted Answer

Workers are typically trained to perform more than one function.

Question 60

Just-in-time operations attempt to significantly

Accepted Answer

Eliminate waste and simplify operations.

Question 61

Conversion costs are comprised of:

Accepted Answer

Direct labor and factory overhead.

Question 62

The yield is the ratio of:

Accepted Answer

the materials output quantity to the materials input quantity.

Question 63

Which of the following measures would not help managers to control and improve operations?

Accepted Answer

Commissions paid per time period.

Question 64

According to the just-in-time philosophy,

Accepted Answer

Employees should be cross-trained for multiple functions.

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