Question 1

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 2

What is "balanced" in the balanced scorecard approach?

Accepted Answer

A)  The number of products produced 
B)  The emphasis on financial and non-financial performance measurements 
C)  The amount of costs allocated to products 
D)  The number of defects found on each product 
A)  The number of products produced 
B)  The emphasis on financial and non-financial performance measurements 
C)  The amount of costs allocated to products 
D)  The number of defects found on each product

Question 3

Wasson Company reported the following year-end information: $$\begin{array} { l r } 
\text { Beginning work in process inventory } & 35,000 \
\text { Beginning raw materials inventory } & 18,000 \
\text { Ending work in process inventory } & 38,000 \
\text { Ending raw materials inventory } & 15,000 \
\text { Raw materials purchased } & 560,000 \
\text { Direct labor } & 210,000 \
\text { Manufacturing overhead } & 120,000
\end{array}$$ How much is Wasson's total cost of work in process for the year?

Accepted Answer

A)  $925,000 
B)  $893,000 
C)  $890,000 
D)  $928,000 
A)  $925,000 
B)  $893,000 
C)  $890,000 
D)  $928,000

Question 4

Barton Company has beginning work in process inventory of $144,000 and total manufacturing costs of $686,000. If cost of goods manufactured is $660,000, what is the cost of the ending work in process inventory?

Accepted Answer

A)  $150,000. 
B)  $118,000. 
C)  $190,000. 
D)  $170,000. 
A)  $150,000. 
B)  $118,000. 
C)  $190,000. 
D)  $170,000.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2019. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured?

Accepted Answer

A)  $70,000 
B)  $10,000 
C)  $60,000 
D)  $40,000 
A)  $70,000 
B)  $10,000 
C)  $60,000 
D)  $40,000

Question 7

If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

Accepted Answer

A) True 
 B)False

Question 8

Management accountants would not

Accepted Answer

A)  assist in budget planning. 
B)  prepare reports primarily for external users. 
C)  determine cost behavior. 
D)  be concerned with the impact of cost and volume on profits. 
A)  assist in budget planning. 
B)  prepare reports primarily for external users. 
C)  determine cost behavior. 
D)  be concerned with the impact of cost and volume on profits.

Question 9

Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?

Accepted Answer

A)  Balanced scorecard 
B)  Just-in-time inventory 
C)  Activity-based costing 
D)  Total quality management 
A)  Balanced scorecard 
B)  Just-in-time inventory 
C)  Activity-based costing 
D)  Total quality management

Question 10

Which one of the following costs would not be inventoriable?

Accepted Answer

A)  Period costs 
B)  Factory insurance costs 
C)  Indirect materials 
D)  Indirect labor costs 
A)  Period costs 
B)  Factory insurance costs 
C)  Indirect materials 
D)  Indirect labor costs

Question 11

When the physical association of raw materials with the finished product is too small to trace in terms of cost, they are usually classified as indirect materials.

Accepted Answer

A) True 
 B)False

Question 12

On the costs of goods manufactured schedule, depreciation on factory equipment

Accepted Answer

A)  is not listed because it is included with Depreciation Expense on the income statement. 
B)  appears in the manufacturing overhead section. 
C)  is not listed because it is not a product cost. 
D)  is not an inventoriable cost. 
A)  is not listed because it is included with Depreciation Expense on the income statement. 
B)  appears in the manufacturing overhead section. 
C)  is not listed because it is not a product cost. 
D)  is not an inventoriable cost.

Question 13

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 14

Raw materials are equal to direct materials minus indirect materials.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not another name for the term manufacturing overhead?

Accepted Answer

A)  Factory overhead 
B)  Pervasive costs 
C)  Burden 
D)  Indirect manufacturing costs 
A)  Factory overhead 
B)  Pervasive costs 
C)  Burden 
D)  Indirect manufacturing costs

Question 16

Indirect materials and indirect labor are both inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 17

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

Accepted Answer

A)  period costs. 
B)  nonmanufacturing costs. 
C)  selling and administrative expenses. 
D)  manufacturing overhead. 
A)  period costs. 
B)  nonmanufacturing costs. 
C)  selling and administrative expenses. 
D)  manufacturing overhead.

Question 18

Product costs consist of

Accepted Answer

A)  direct materials and direct labor only. 
B)  direct materials, direct labor, and manufacturing overhead. 
C)  selling and administrative expenses. 
D)  period costs. 
A)  direct materials and direct labor only. 
B)  direct materials, direct labor, and manufacturing overhead. 
C)  selling and administrative expenses. 
D)  period costs.

Question 19

Product costs are also called inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 20

Direct materials become a cost of the finished goods manufactured when they are acquired, not when they are used.

Accepted Answer

A) True 
 B)False

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

What is "balanced" in the balanced scorecard approach?

Barton Company has beginning work in process inventory of $144,000 and total manufacturing costs of $686,000. If cost of goods manufactured is $660,000, what is the cost of the ending work in process inventory?

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

Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2019. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured?

If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

Management accountants would not

Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?

Which one of the following costs would not be inventoriable?

When the physical association of raw materials with the finished product is too small to trace in terms of cost, they are usually classified as indirect materials.

On the costs of goods manufactured schedule, depreciation on factory equipment

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

Raw materials are equal to direct materials minus indirect materials.

Which of the following is not another name for the term manufacturing overhead?

Indirect materials and indirect labor are both inventoriable costs.

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

Product costs consist of

Product costs are also called inventoriable costs.

Direct materials become a cost of the finished goods manufactured when they are acquired, not when they are used.

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Statement of Cash Flows

Financial Statement Analysis

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Exam 1: Managerial Accounting

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

What is "balanced" in the balanced scorecard approach?

Barton Company has beginning work in process inventory of $144,000 and total manufacturing costs of $686,000. If cost of goods manufactured is $660,000, what is the cost of the ending work in process inventory?

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

Kushman Combines, Inc. has $20,000 of ending finished goods inventory as of December 31, 2019. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured?

If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

Management accountants would not

Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?

Which one of the following costs would not be inventoriable?

When the physical association of raw materials with the finished product is too small to trace in terms of cost, they are usually classified as indirect materials.

On the costs of goods manufactured schedule, depreciation on factory equipment

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

Raw materials are equal to direct materials minus indirect materials.

Which of the following is not another name for the term manufacturing overhead?

Indirect materials and indirect labor are both inventoriable costs.

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

Product costs consist of

Product costs are also called inventoriable costs.

Direct materials become a cost of the finished goods manufactured when they are acquired, not when they are used.

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Statement of Cash Flows

Financial Statement Analysis

Filters