Question 1

Which of the following statements is true regarding product and period costs?

Accepted Answer

A)  Office salaries expense and factory maintenance are both product costs. 
B)  Office rent is a product cost and supervisors' salaries expense is a period cost. 
C)  Factory rent is a product cost and advertising expense is a period cost. 
D)  Delivery expense is a product cost and indirect materials is a period cost. 
E)  Sales commissions and indirect labor are both period costs. 
A)  Office salaries expense and factory maintenance are both product costs. 
B)  Office rent is a product cost and supervisors' salaries expense is a period cost. 
C)  Factory rent is a product cost and advertising expense is a period cost. 
D)  Delivery expense is a product cost and indirect materials is a period cost. 
E)  Sales commissions and indirect labor are both period costs.

Question 2

Goals of a Total Quality Management process include all of the following except:

Accepted Answer

A)  Reduced waste. 
B)  Better inventory control. 
C)  Continuous improvement. 
D)  Consistent production levels. 
E)  Fewer product defects. 
A)  Reduced waste. 
B)  Better inventory control. 
C)  Continuous improvement. 
D)  Consistent production levels. 
E)  Fewer product defects.

Question 3

Define and contrast period costs and product costs. How are they reported in the financial statements of a manufacturing company?

Accepted Answer

Period costs are the expenditures that a

Question 4

________ inventory consists of products in the process of being manufactured but not yet complete.

Accepted Answer

Work in pr

Question 5

Manufacturers usually have three inventories: raw materials, work in process, and finished goods.

Accepted Answer

A) True 
 B)False

Question 6

Continuous improvement:

Accepted Answer

A)  Encourages employees to maintain established business practices. 
B)  Strives to preserve acceptable levels of performance. 
C)  Rejects the notion of "good enough." 
D)  Is not applicable to most businesses. 
E)  Is possible only in service businesses. 
A)  Encourages employees to maintain established business practices. 
B)  Strives to preserve acceptable levels of performance. 
C)  Rejects the notion of "good enough." 
D)  Is not applicable to most businesses. 
E)  Is possible only in service businesses.

Question 7

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable.

Accepted Answer

A) True 
 B)False

Question 8

The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

Accepted Answer

A)  Just-in-time manufacturing model. 
B)  Managerial accounting model. 
C)  Corporate social responsibility model. 
D)  Continuous improvement model. 
E)  Lean business model. 
A)  Just-in-time manufacturing model. 
B)  Managerial accounting model. 
C)  Corporate social responsibility model. 
D)  Continuous improvement model. 
E)  Lean business model.

Question 9

Control is the process of setting goals and determining ways to achieve them.

Accepted Answer

A) True 
 B)False

Question 10

Materials that are used in manufacturing but are not clearly identified with specific product units are called:

Accepted Answer

A)  Secondary materials. 
B)  General materials. 
C)  Direct materials. 
D)  Indirect materials. 
E)  Materials inventory. 
A)  Secondary materials. 
B)  General materials. 
C)  Direct materials. 
D)  Indirect materials. 
E)  Materials inventory.

Question 11

Calculate the cost of goods sold using the following information:

Accepted Answer

A)  $680,500. 
B)  $701,900. 
C)  $687,100. 
D)  $674,600. 
E)  $772,600. 
A)  $680,500. 
B)  $701,900. 
C)  $687,100. 
D)  $674,600. 
E)  $772,600.

Question 12

Raw materials that are tangible components of the finished product and can be separately and readily traced through the manufacturing process are called:

Accepted Answer

A)  Raw materials sold. 
B)  Chargeable materials. 
C)  Work in process. 
D)  Indirect materials. 
E)  Direct materials. 
A)  Raw materials sold. 
B)  Chargeable materials. 
C)  Work in process. 
D)  Indirect materials. 
E)  Direct materials.

Question 13

A manufacturing company's beginning finished goods inventory was $29,000; cost of goods manufactured was $316,000; and the ending finished goods inventory was $31,000. What is the cost of goods sold for that year?

Accepted Answer

The answer of A manufacturing company's beginning finished goods inventory...

Question 14

Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000. Its conversion costs total:

Accepted Answer

A)  $10,000,000. 
B)  $8,000,000. 
C)  $12,000,000. 
D)  $5,000,000. 
E)  $15,000,000. 
A)  $10,000,000. 
B)  $8,000,000. 
C)  $12,000,000. 
D)  $5,000,000. 
E)  $15,000,000.

Question 15

Using the information below for Laurels Company; determine the manufacturing costs added during the current year: $\begin{array} { | l | r | } 
\hline \text { Direct materials used } & \$ 5,000 \
\hline \text { Direct Labor } & 7,000 \
\hline \text { Total Factory overhead } & 5,100 \
\hline \text { Beginning work in process } & 3,000 \
\hline \text { Ending work in process } & 4,000\
\hline
\end{array}$

Accepted Answer

A)  $12,000. 
B)  $16,100. 
C)  $17,100. 
D)  $18,100. 
E)  $13,600. 
A)  $12,000. 
B)  $16,100. 
C)  $17,100. 
D)  $18,100. 
E)  $13,600.

Question 16

Variable costs per unit change in proportion to changes in the volume of activity.

Accepted Answer

A) True 
 B)False

Question 17

________ reveals how much raw materials inventory is available in terms of the number of days' sales.

Accepted Answer

Days' sale

Question 18

Last year, Wesson Company sold 10,000 units of its only product. If sales decrease by 15% in the current year, how will unit variable cost and unit fixed cost be affected?

Accepted Answer

A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
E)  Choice E 
A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
E)  Choice E

Question 19

Compute the ending work in process inventory for a manufacturer with the following information.
 $$\begin{array} { | l | r | } 
\hline \text { Raw materials purchased } & 131,700 \
\hline \text { Raw materials used in production } & 65,400 \
\hline \text { Direct labor used } & 44,000 \
\hline \text { Total factory overhead used } & 101,600 \
\hline \text { Work in process inventory, beginning of year } & 32,500 \
\hline \text { Cost of goods manufactured } & 212,900 \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | r | } 
\hline \t

Question 20

Which of the following accounts would appear on a schedule of cost of goods manufactured?

Accepted Answer

A)  Raw materials, factory insurance expired, indirect labor. 
B)  Raw materials, work in process, finished goods. 
C)  Direct labor, delivery equipment, and depreciation on factory equipment. 
D)  Direct materials, indirect labor, sales salaries. 
E)  Direct labor, factory repairs and maintenance, wages payable. 
A)  Raw materials, factory insurance expired, indirect labor. 
B)  Raw materials, work in process, finished goods. 
C)  Direct labor, delivery equipment, and depreciation on factory equipment. 
D)  Direct materials, indirect labor, sales salaries. 
E)  Direct labor, factory repairs and maintenance, wages payable.

Which of the following statements is true regarding product and period costs?

Goals of a Total Quality Management process include all of the following except:

Define and contrast period costs and product costs. How are they reported in the financial statements of a manufacturing company?

________ inventory consists of products in the process of being manufactured but not yet complete.

Manufacturers usually have three inventories: raw materials, work in process, and finished goods.

Continuous improvement:

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable.

The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

Control is the process of setting goals and determining ways to achieve them.

Materials that are used in manufacturing but are not clearly identified with specific product units are called:

Calculate the cost of goods sold using the following information:

Raw materials that are tangible components of the finished product and can be separately and readily traced through the manufacturing process are called:

A manufacturing company's beginning finished goods inventory was $29,000; cost of goods manufactured was $316,000; and the ending finished goods inventory was $31,000. What is the cost of goods sold for that year?

Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000. Its conversion costs total:

Using the information below for Laurels Company; determine the manufacturing costs added during the current year: Direct materials used \ 5,000 Direct Labor 7,000 Total Factory overhead 5,100 Beginning work in process 3,000 Ending work in process 4,000

Variable costs per unit change in proportion to changes in the volume of activity.

________ reveals how much raw materials inventory is available in terms of the number of days' sales.

Last year, Wesson Company sold 10,000 units of its only product. If sales decrease by 15% in the current year, how will unit variable cost and unit fixed cost be affected?

Which of the following accounts would appear on a schedule of cost of goods manufactured?

Job Order Costing and Analysis

Process Costing and Analysis

Activity Based Costing and Analysis

Cost Behavior Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Analyzing for Business Transactions

Partnership Accounting

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Exam 1: Managerial Accounting Concepts and Principles

Which of the following statements is true regarding product and period costs?

Goals of a Total Quality Management process include all of the following except:

Define and contrast period costs and product costs. How are they reported in the financial statements of a manufacturing company?

________ inventory consists of products in the process of being manufactured but not yet complete.

Manufacturers usually have three inventories: raw materials, work in process, and finished goods.

Continuous improvement:

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable.

The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

Control is the process of setting goals and determining ways to achieve them.

Materials that are used in manufacturing but are not clearly identified with specific product units are called:

Calculate the cost of goods sold using the following information:

Raw materials that are tangible components of the finished product and can be separately and readily traced through the manufacturing process are called:

A manufacturing company's beginning finished goods inventory was $29,000; cost of goods manufactured was $316,000; and the ending finished goods inventory was $31,000. What is the cost of goods sold for that year?

Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000. Its conversion costs total:

Using the information below for Laurels Company; determine the manufacturing costs added during the current year: Direct materials used \ 5,000 Direct Labor 7,000 Total Factory overhead 5,100 Beginning work in process 3,000 Ending work in process 4,000

Variable costs per unit change in proportion to changes in the volume of activity.

________ reveals how much raw materials inventory is available in terms of the number of days' sales.

Last year, Wesson Company sold 10,000 units of its only product. If sales decrease by 15% in the current year, how will unit variable cost and unit fixed cost be affected?

Which of the following accounts would appear on a schedule of cost of goods manufactured?

Job Order Costing and Analysis

Process Costing and Analysis

Activity Based Costing and Analysis

Cost Behavior Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Analyzing for Business Transactions

Partnership Accounting

Filters