Question 1

The supply chain is all the activities associated with providing a product or service.

Accepted Answer

A) True 
 B)False

Question 2

Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $866,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Worth Company's cost of goods sold for the year is

Accepted Answer

A) $854,000. 
B) $878,000. 
C) $826,000. 
D) $602,000. 
A) $854,000. 
B) $878,000. 
C) $826,000. 
D) $602,000.

Question 3

Many companies now focus on reducing defects in finished products with the goal of zero defects. This is called

Accepted Answer

A) Activity-based costing. 
B) Balanced scorecard. 
C) Value chain. 
D) Total quality management. 
A) Activity-based costing. 
B) Balanced scorecard. 
C) Value chain. 
D) Total quality management.

Question 4

A manufacturing company reports cost of goods manufactured as a(n)

Accepted Answer

A) current asset on the balance sheet. 
B) administrative expense on the income statement. 
C) component in the calculation of cost of goods sold on the income statement. 
D) component of the raw materials inventory on the balance sheet. 
A) current asset on the balance sheet. 
B) administrative expense on the income statement. 
C) component in the calculation of cost of goods sold on the income statement. 
D) component of the raw materials inventory on the balance sheet.

Question 5

The balanced scorecard approach attempts to maintain as little inventory on hand as possible.

Accepted Answer

A) True 
 B)False

Question 6

Period costs are not inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 7

What activities and responsibilities are not associated with management's functions?

Accepted Answer

A) Planning 
B) Accountability 
C) Controlling 
D) Directing 
A) Planning 
B) Accountability 
C) Controlling 
D) Directing

Question 8

In a manufacturing company balance sheet, manufacturing inventories are reported in the current assets section in the order of their expected use in production.

Accepted Answer

A) True 
 B)False

Question 9

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 10

The reporting standard for external financial reports is

Accepted Answer

A) industry-specific. 
B) company-specific. 
C) generally accepted accounting principles. 
D) department-specific. 
A) industry-specific. 
B) company-specific. 
C) generally accepted accounting principles. 
D) department-specific.

Question 11

Determining the unit cost of manufacturing a product is an output of financial accounting.

Accepted Answer

A) True 
 B)False

Question 12

The major reporting standard for presenting managerial accounting information is

Accepted Answer

A) relevance. 
B) generally accepted accounting principles. 
C) the cost principle. 
D) the current tax law. 
A) relevance. 
B) generally accepted accounting principles. 
C) the cost principle. 
D) the current tax law.

Question 13

Gammil Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If direct materials used were $490,000, what was the cost of raw materials purchased?

Accepted Answer

A) $490,000. 
B) $520,000. 
C) $466,000. 
D) $514,000. 
A) $490,000. 
B) $520,000. 
C) $466,000. 
D) $514,000.

Question 14

Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.

Accepted Answer

A) True 
 B)False

Question 15

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is

Accepted Answer

A) manufacturing overhead. 
B) indirect materials. 
C) indirect labor. 
D) direct labor. 
A) manufacturing overhead. 
B) indirect materials. 
C) indirect labor. 
D) direct labor.

Question 16

Period costs include selling and administrative expenses.

Accepted Answer

A) True 
 B)False

Question 17

Penner Company reported total manufacturing costs of $450,000, manufacturing overhead totaling $78,000, and direct materials totaling $96,000. How much is direct labor cost?

Accepted Answer

A) Cannot be determined from the information provided. 
B) $624,000 
C) $354,000 
D) $276,000 
A) Cannot be determined from the information provided. 
B) $624,000 
C) $354,000 
D) $276,000

Question 18

Finished goods inventory for a manufacturing company is equivalent to inventory for a merchandising company.

Accepted Answer

A) True 
 B)False

Question 19

For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to

Accepted Answer

A) cost of goods purchased. 
B) cost of goods manufactured. 
C) net purchases. 
D) total manufacturing costs. 
A) cost of goods purchased. 
B) cost of goods manufactured. 
C) net purchases. 
D) total manufacturing costs.

Question 20

Direct materials and direct labor of a company total $8,000,000. If manufacturing overhead is $4,000,000, what is direct labor cost?

Accepted Answer

A) $4,000,000 
B) $8,000,000 
C) $0 
D) Cannot be determined from the information provided 
A) $4,000,000 
B) $8,000,000 
C) $0 
D) Cannot be determined from the information provided

Exam 13: Managerial Accounting

The supply chain is all the activities associated with providing a product or service.

Many companies now focus on reducing defects in finished products with the goal of zero defects. This is called

A manufacturing company reports cost of goods manufactured as a(n)

The balanced scorecard approach attempts to maintain as little inventory on hand as possible.

Period costs are not inventoriable costs.

What activities and responsibilities are not associated with management's functions?

In a manufacturing company balance sheet, manufacturing inventories are reported in the current assets section in the order of their expected use in production.

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

The reporting standard for external financial reports is

Determining the unit cost of manufacturing a product is an output of financial accounting.

The major reporting standard for presenting managerial accounting information is

Gammil Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If direct materials used were $490,000, what was the cost of raw materials purchased?

Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is

Period costs include selling and administrative expenses.

Penner Company reported total manufacturing costs of $450,000, manufacturing overhead totaling $78,000, and direct materials totaling $96,000. How much is direct labor cost?

Finished goods inventory for a manufacturing company is equivalent to inventory for a merchandising company.

For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to

Direct materials and direct labor of a company total $8,000,000. If manufacturing overhead is $4,000,000, what is direct labor cost?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

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