question

Which of the following statements Is false

answer

There is no overlap between financial and managerial accounting

question

Which of the following is not associated with managerial accounting?

answer

Must rely on estimates and forecasts

question

In order to be useful managers, managerial accounting reports should possess all of the following except:

answer

Be prepared in accordance with generally accepted accounting principles

question

Which of the following is most associated with financial accounting?

answer

Prepared in accordance with GAAP

question

What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?

answer

controlling

question

All of the following would most likely be on the controllers staff except:

answer

Investments and shareholder relations managers

question

Accounting designed to meet the needs of decision makers inside the business is

answer

managerial accounting

question

Term used too describe the process of developing the organizations objectives and translating those into courses of action?

answer

Planning

question

Which of the following is not a characteristic of useful managerial accounting reports?

answer

GAAP- Adhering

question

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

answer

Managers

question

The primary goal of managerial accounting is to provide information to

answer

Management

question

What is the primary criterion for the preparation of managerial accounting reports?

answer

Manager needs

question

All of the following employees hold line positions in Facebook except

answer

vice president of finance

question

Which of the following are basic phases of the management process?

answer

planning and controlling

question

Which of the following is the principle reason for preparing managerial accounting reports?

answer

usefulness to management

question

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

answer

controller

question

Managerial accounting reports are

answer

prepared according to management needs

question

Conversion costs are

answer

Factory Overhead and Direct Labor

question

The following are all product costs except

answer

sales and administrative expenses

question

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

answer

factory overhead cost

question

Materials must have which two qualities in order to be classified as direct materials?

answer

They must be an integral part of the finished product and be a significant portion of the total product cost

question

Goods that are partially completed by a manufacturer are

answer

work in process inventory

question

What term refers to the cost of changing direct materials into a finished manufactured product?

answer

conversion cost

question

All of the following are examples of indirect labor except

answer

machine operators

question

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

answer

direct labor cost

question

All of the following could be considered a direct material except 1) glue 2) steel 3) lumber 4) fabric

answer

Glue

question

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

answer

factory overhead cost

question

Which of the following costs are conversion costs?

answer

direct labor cost and factory overhead cost

question

The Darwin Company reports the following information: Sales $76,500 Direct materials used 7,300 Depreciation on factory equipment 4,700 Indirect labor 5,900 Direct labor 10,500 Factory rent 4,200 Factory utilities 1,200 Sales salaries expense 15,600 Office salaries expense 8,900 Indirect materials 1,200 Product Costs are:

answer

$35,000

question

The cost of a manufactured product generally consists of which of the following costs?

answer

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

question

Prime costs are

answer

direct materials and direct labor

question

Another term for factory overhead is

answer

factory burden

question

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

answer

cost of interior upholstery

question

Which of the following is not a factory overhead cost?

answer

materials used directly in the manufacturing process of the product

question

An example of a period cost is

answer

advertising expense

question

A product cost is

answer

expensed in the period the product is sold

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Period costs include

answer

operating costs that are shown on the income statement in the period in which they are incurred

question

Factory overhead includes

answer

ndirect labor and indirect materials

question

Insurance expense incurred on a factory building would be treated as a

answer

product cost

question

Which of the following is not true in regards to direct materials for a bakery?

answer

Paper cupcake liners, that become part of the product, must be accounted for as direct materials.

question

Which of the following is an example of direct labor cost for a cell phone manufacturer?

answer

cost of wages of assembly worker

question

Indirect labor and indirect materials are classified as

answer

factory overhead and product costs

question

A plant manager's salary is

answer

an indirect cost

question

Direct labor and direct materials are

answer

product costs and expensed when the goods are sold

question

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

answer

product costs and expensed when the goods are sold

question

Rent expense on a factory building would be treated as a(n)

answer

Product Cost

question

Product costs

answer

appear on both the income statement and balance sheet

question

Which of the following is not a prime cost?

answer

plant janitor's wages

question

Which of the following is part of factory overhead cost?

answer

depreciation of factory equipment and machines

question

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

answer

direct labor used

question

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

answer

oil lubricants used for factory machinery

question

Given the following data: ? Beginning raw materials inventory $30,000 Materials purchased 65,000 Ending raw materials inventory 40,000 ?What is the amount of raw materials used?

answer

$55,000

question

Costs on the income statement for both a merchandiser and a manufacturer would be

answer

operating expenses

question

Finished goods inventory is reported on the

answer

balance sheet as a current asset

question

All of the following would be reported on the balance sheet as a current asset except

answer

factory overhead

question

What is the purpose of the statement of cost of goods manufactured?

answer

to determine the amounts transferred to finished goods

question

Which of the following accounts will be found on the income statement?

answer

Cost of Goods Sold

question

Which of the following are reported on the income statement as part of cost of goods?

answer

cost of goods manufactured

question

Cost of goods sold for a manufacturer equals cost of goods manufactured plus

answer

beginning finished goods inventory less ending finished goods inventory

question

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

answer

cost of goods sold

question

Work in process inventory increased by $20,000 during the current year. Cost of goods manufactured was $180,000. Total manufacturing costs incurred are

answer

$200,000

question

Work in process inventory on December 31 is $42,000. Work in process inventory decreased by 40% during the year. Total manufacturing costs incurred amount to $260,000. What is the cost of goods manufactured?

answer

$288,000 COGM = 42000/ (1-40%) + 260000 - 42000 = 288000

question

Cost of goods manufactured is equal to

answer

total manufacturing costs plus beginning work in process inventory less ending work in process inventory

question

On the income statement of a manufacturing company, what replaces purchases in the cost of goods sold section of a retail company?

answer

cost of goods manufactured

question

A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is

answer

$270,000 Gross Profit= sales - cogs ******

question

Beginning work in process is equal to

answer

cost of goods manufactured plus ending work in process minus manufacturing costs incurred during the current period

question

A company sells goods for $150,000 that cost $54,000 to manufacture. Which statement is true? Question options: 1) The company will recognize sales on the balance sheet of $150,000. 2) The company will recognize $96,000 gross profit on the balance sheet. 3) The company will decrease finished goods by $54,000. 4) The company will increase finished goods by $54,000

answer

The company will decrease finished goods by $54,000.

question

Managers used managerial information for all of the following except

answer

to evaluate the company's stock performance

question

Managerial accountants could prepare all of the following reports except

answer

an annual report for external regulators such as the SEC

question

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

answer

a statement of stockholders' equity

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