Question 1

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

Accepted Answer

A) report to analyze potential efficiencies and savings for the purchase of new production equipment 
B) schedule of total manufacturing costs incurred 
C) statement of cost of goods manufactured 
D) statement of stockholders' equity 
A) report to analyze potential efficiencies and savings for the purchase of new production equipment 
B) schedule of total manufacturing costs incurred 
C) statement of cost of goods manufactured 
D) statement of stockholders' equity

Question 2

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Salesperson commissions
A)Prime costs
B)Conversion costs
C)Both prime and conversion costs
D)Neither prime nor conversion costs

Accepted Answer

The answer of The following are some of the costs...

Question 3

Match the items below to the type of cost (a-c).
-Utilities on factory building
A)Direct
B)Indirect
C)Neither direct nor indirect

Accepted Answer

The answer of Match the items below to the type...

Question 4

Goods that are partway through the manufacturing process, but not yet complete, are referred to as materials inventory.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) investors 
B) managers 
C) shareholders 
D) customers 
A) investors 
B) managers 
C) shareholders 
D) customers

Question 6

Sienna Company has the following information for January:   Determine the cost of goods manufactured.

Accepted Answer

The answer of Sienna Company has the following information for...

Question 7

Cost of goods manufactured is equal to

Accepted Answer

A) total manufacturing costs plus ending materials inventory less beginning materials inventory 
B) cost of goods sold plus beginning work in process inventory less ending work in process inventory 
C) total manufacturing costs plus ending work in process inventory less beginning work in process inventory 
D) total manufacturing costs plus beginning work in process inventory less ending work in process inventory 
A) total manufacturing costs plus ending materials inventory less beginning materials inventory 
B) cost of goods sold plus beginning work in process inventory less ending work in process inventory 
C) total manufacturing costs plus ending work in process inventory less beginning work in process inventory 
D) total manufacturing costs plus beginning work in process inventory less ending work in process inventory

Question 8

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Depreciation expense-office
A)Prime costs
B)Conversion costs
C)Both prime and conversion costs
D)Neither prime nor conversion costs

Accepted Answer

The answer of The following are some of the costs...

Question 9

Direct costs can be specifically traced to a cost object.

Accepted Answer

A) True 
 B)False

Question 10

A product cost is

Accepted Answer

A) expensed in the period in which the product is manufactured 
B) shown with current liabilities on the balance sheet 
C) shown with operating expenses on the income statement 
D) expensed in the period the product is sold 
A) expensed in the period in which the product is manufactured 
B) shown with current liabilities on the balance sheet 
C) shown with operating expenses on the income statement 
D) expensed in the period the product is sold

Question 11

Match the items below for a cake factory to the type of cost (a or b).
-Baker's wages
A)Product cost
B)Period cost

Accepted Answer

The answer of Match the items below for a cake...

Question 12

Horizontals are departments within a company that are responsible for developing products.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) provide objective measures of past operations and subjective estimates about future decisions 
B) be prepared in accordance with generally accepted accounting principles 
C) be provided at any time management needs information 
D) be prepared to report information for any unit of the business to support decision making 
A) provide objective measures of past operations and subjective estimates about future decisions 
B) be prepared in accordance with generally accepted accounting principles 
C) be provided at any time management needs information 
D) be prepared to report information for any unit of the business to support decision making

Question 14

Match the items below to the type of cost (a or b).
-Salary of plant manager
A)Product cost
B)Period cost

Accepted Answer

The answer of Match the items below to the type...

Question 15

Managerial accounting reports must be prepared according to generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 16

A performance report that identifies the amount of employee downtime is a financial accounting report.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following must be true in order for materials to be classified as direct materials?

Accepted Answer

A) They must be classified as both prime costs and conversion costs. 
B) They must be introduced into the process in both work in process inventories and finished goods inventories. 
C) They must be an integral part of the finished product, but can be an insignificant portion of the total product cost. 
D) They must be an integral part of the finished product and be a significant portion of the total product cost. 
A) They must be classified as both prime costs and conversion costs. 
B) They must be introduced into the process in both work in process inventories and finished goods inventories. 
C) They must be an integral part of the finished product, but can be an insignificant portion of the total product cost. 
D) They must be an integral part of the finished product and be a significant portion of the total product cost.

Question 18

The costs of materials and labor that do not enter directly into the finished product are classified as factory overhead.

Accepted Answer

A) True 
 B)False

Question 19

Conversion cost is the combination of direct labor cost and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) Inventory 
B) Work in Process 
C) Finished Goods 
D) Cost of Goods Sold 
A) Inventory 
B) Work in Process 
C) Finished Goods 
D) Cost of Goods Sold

Exam 15: Introduction to Managerial Accounting

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

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Salesperson commissions A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs

Match the items below to the type of cost (a-c). -Utilities on factory building A)Direct B)Indirect C)Neither direct nor indirect

Goods that are partway through the manufacturing process, but not yet complete, are referred to as materials inventory.

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

Sienna Company has the following information for January: Determine the cost of goods manufactured.

Cost of goods manufactured is equal to

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Depreciation expense-office A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs

Direct costs can be specifically traced to a cost object.

A product cost is

Match the items below for a cake factory to the type of cost (a or b). -Baker's wages A)Product cost B)Period cost

Horizontals are departments within a company that are responsible for developing products.

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

Match the items below to the type of cost (a or b). -Salary of plant manager A)Product cost B)Period cost

Managerial accounting reports must be prepared according to generally accepted accounting principles.

A performance report that identifies the amount of employee downtime is a financial accounting report.

Which of the following must be true in order for materials to be classified as direct materials?

The costs of materials and labor that do not enter directly into the finished product are classified as factory overhead.

Conversion cost is the combination of direct labor cost and factory overhead cost.

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Cost Systems

Activity-Based Costing

Support Department and Joint Cost Allocation

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

The Balanced Scorecard and Corporate Social Responsibility

Investments

Filters