Question 1

Product cost consists of factory overhead.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is true of lead time?

Accepted Answer

A) Total lead time can be divided into acceptable and non-acceptable lead time. 
B) Lead time is a measure of time that elapses between the sale of a product and delivery to the customer. 
C) Reducing nonvalue-added lead time reduces costs and improves the speed of production. 
D) Reducing nonacceptable lead time improves the speed of production,but will not affect product cost. 
A) Total lead time can be divided into acceptable and non-acceptable lead time. 
B) Lead time is a measure of time that elapses between the sale of a product and delivery to the customer. 
C) Reducing nonvalue-added lead time reduces costs and improves the speed of production. 
D) Reducing nonacceptable lead time improves the speed of production,but will not affect product cost.

Question 3

Which of the following is a product cost?

Accepted Answer

A) Administrative cost 
B) Direct labor cost 
C) Selling cost 
D) Opportunity cost 
A) Administrative cost 
B) Direct labor cost 
C) Selling cost 
D) Opportunity cost

Question 4

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 5

Managerial accounting reports information primarily for stakeholders that are external to the company.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following costs is included in the cost of manufacturing a product?

Accepted Answer

A) Administrative cost 
B) Period cost 
C) Factory overhead cost 
D) Opportunity cost 
A) Administrative cost 
B) Period cost 
C) Factory overhead cost 
D) Opportunity cost

Question 7

The current year's advertising costs are normally considered as product costs.

Accepted Answer

A) True 
 B)False

Question 8

For Peterson Company,total overhead applied was $35,000,000 at the end of the year.Actual overhead was $35,800,000.Closing over/under applied overhead into cost of goods sold would cause net income to:

Accepted Answer

A) increase by $800,000. 
B) decrease by $800,000. 
C) stay the same. 
D) decrease by $200,000. 
A) increase by $800,000. 
B) decrease by $800,000. 
C) stay the same. 
D) decrease by $200,000.

Question 9

Direct labor cost is an example of a product cost.

Accepted Answer

A) True 
 B)False

Question 10

Job order costing and process costing are:

Accepted Answer

A) pricing systems. 
B) cost accounting systems. 
C) cost flow systems. 
D) inventory tracking systems. 
A) pricing systems. 
B) cost accounting systems. 
C) cost flow systems. 
D) inventory tracking systems.

Question 11

Period costs are costs that are incurred for the production requirements of a certain period.

Accepted Answer

A) True 
 B)False

Question 12

A manufacturing business converts materials into finished products through the use of machinery and labor.

Accepted Answer

A) True 
 B)False

Question 13

The Anderson Company forecasts that total overhead for the current year will be $15,000,000 and total machine hours will be 200,000 hours.However,the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours.If the company uses a predetermined overhead rate based on machine hours for applying overhead,what is predetermined overhead rate?

Accepted Answer

A) $80 per machine hour 
B) $150 per machine hour 
C) $75 per machine hour 
D) $40 per machine hour 
A) $80 per machine hour 
B) $150 per machine hour 
C) $75 per machine hour 
D) $40 per machine hour

Question 14

Elite,Inc.has estimated total factory overhead costs of $900,000,and 25,000 direct labor hours for the current fiscal year.If the direct labor hours for Job N41 is 2,000,calculate the total factory overhead applied to this job.

Accepted Answer

A) $40,000 
B) $25,000 
C) $4,000 
D) $72,000 
A) $40,000 
B) $25,000 
C) $4,000 
D) $72,000

Question 15

Which of the following statements is true of managerial accounting?

Accepted Answer

A) Reporting under managerial accounting is constrained by rules such as generally accepted accounting principles. 
B) Managerial accounting is required to be reported annually,also may be reported monthly or quarterly. 
C) Managerial accounting provides information to the external stakeholders of the company. 
D) Managerial accounting is primarily concerned with generating information for use by managers. 
A) Reporting under managerial accounting is constrained by rules such as generally accepted accounting principles. 
B) Managerial accounting is required to be reported annually,also may be reported monthly or quarterly. 
C) Managerial accounting provides information to the external stakeholders of the company. 
D) Managerial accounting is primarily concerned with generating information for use by managers.

Question 16

Refer to the information provided for Bluemoon,Inc.What is the cost of goods sold?

Accepted Answer

A) $670,000 
B) $418,000 
C) $520,000 
D) $650,000 
A) $670,000 
B) $418,000 
C) $520,000 
D) $650,000

Question 17

If the actual overhead incurred is less than the applied factory overhead,it is called overapplied factory overhead.

Accepted Answer

A) True 
 B)False

Question 18

Until products are sold,product costs are treated as:

Accepted Answer

A) liabilities. 
B) assets. 
C) expenses. 
D) income. 
A) liabilities. 
B) assets. 
C) expenses. 
D) income.

Question 19

The document authorizing the issuance of materials from the storeroom for use in manufacturing is called:

Accepted Answer

A) materials requisition. 
B) purchase requisition. 
C) receiving report. 
D) purchase order. 
A) materials requisition. 
B) purchase requisition. 
C) receiving report. 
D) purchase order.

Question 20

Which of the following is a product cost?

Accepted Answer

A) CEO salary 
B) Depreciation on factory equipment 
C) Commission to sales 
D) Office lightings 
A) CEO salary 
B) Depreciation on factory equipment 
C) Commission to sales 
D) Office lightings

Product cost consists of factory overhead.

Which of the following statements is true of lead time?

Which of the following is a product cost?

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Managerial accounting reports information primarily for stakeholders that are external to the company.

Which of the following costs is included in the cost of manufacturing a product?

The current year's advertising costs are normally considered as product costs.

For Peterson Company,total overhead applied was $35,000,000 at the end of the year.Actual overhead was $35,800,000.Closing over/under applied overhead into cost of goods sold would cause net income to:

Direct labor cost is an example of a product cost.

Job order costing and process costing are:

Period costs are costs that are incurred for the production requirements of a certain period.

A manufacturing business converts materials into finished products through the use of machinery and labor.

Elite,Inc.has estimated total factory overhead costs of $900,000,and 25,000 direct labor hours for the current fiscal year.If the direct labor hours for Job N41 is 2,000,calculate the total factory overhead applied to this job.

Which of the following statements is true of managerial accounting?

Refer to the information provided for Bluemoon,Inc.What is the cost of goods sold?

If the actual overhead incurred is less than the applied factory overhead,it is called overapplied factory overhead.

Until products are sold,product costs are treated as:

The document authorizing the issuance of materials from the storeroom for use in manufacturing is called:

Which of the following is a product cost?

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters

Exam 10: Accounting Systems for Manufacturing Businesses

Product cost consists of factory overhead.

Which of the following statements is true of lead time?

Which of the following is a product cost?

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Managerial accounting reports information primarily for stakeholders that are external to the company.

Which of the following costs is included in the cost of manufacturing a product?

The current year's advertising costs are normally considered as product costs.

For Peterson Company,total overhead applied was $35,000,000 at the end of the year.Actual overhead was $35,800,000.Closing over/under applied overhead into cost of goods sold would cause net income to:

Direct labor cost is an example of a product cost.

Job order costing and process costing are:

Period costs are costs that are incurred for the production requirements of a certain period.

A manufacturing business converts materials into finished products through the use of machinery and labor.

Elite,Inc.has estimated total factory overhead costs of $900,000,and 25,000 direct labor hours for the current fiscal year.If the direct labor hours for Job N41 is 2,000,calculate the total factory overhead applied to this job.

Which of the following statements is true of managerial accounting?

Refer to the information provided for Bluemoon,Inc.What is the cost of goods sold?

If the actual overhead incurred is less than the applied factory overhead,it is called overapplied factory overhead.

Until products are sold,product costs are treated as:

The document authorizing the issuance of materials from the storeroom for use in manufacturing is called:

Which of the following is a product cost?

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters