Question 1

Costs on the income statement for both a merchandiser and a manufacturer would be

Accepted Answer

A) operating expenses 
B) direct materials 
C) direct labor incurred 
D) cost of goods manufactured 
A) operating expenses 
B) direct materials 
C) direct labor incurred 
D) cost of goods manufactured A

Question 2

Conversion costs are

Accepted Answer

A) direct materials and direct labor 
B) direct materials and factory overhead 
C) factory overhead and direct labor 
D) direct materials and indirect labor 
A) direct materials and direct labor 
B) direct materials and factory overhead 
C) factory overhead and direct labor 
D) direct materials and indirect labor C

Question 3

Operating expenses are product costs and are expensed when the product is sold.

Accepted Answer

A) True 
 B)False  False

Question 4

Managerial accounting provides useful information to managers on product costs.

Accepted Answer

A) True 
 B)False

Question 5

Managerial accounting reports are

Accepted Answer

A) prepared according to GAAP 
B) prepared according to management needs 
C) prepared periodically only 
D) related to the entire business entity only 
A) prepared according to GAAP 
B) prepared according to management needs 
C) prepared periodically only 
D) related to the entire business entity only

Question 6

Match the items below for a bakery to the type of cost a-d.
-Depreciation expense-factory

Accepted Answer

A) Direct materials 
B) Direct labor 
C) Factory overhead 
D) Non-manufacturing cost 
A) Direct materials 
B) Direct labor 
C) Factory overhead 
D) Non-manufacturing cost

Question 7

Match the items below for a bakery to the type of cost a-d.
-Baker's wages

Accepted Answer

A) Direct materials 
B) Direct labor 
C) Factory overhead 
D) Non-manufacturing cost 
A) Direct materials 
B) Direct labor 
C) Factory overhead 
D) Non-manufacturing cost

Question 8

Labor costs that are directly traceable to the product are part of factory overhead.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is part of factory overhead cost?

Accepted Answer

A) sales commissions 
B) depreciation of factory equipment and machines 
C) depreciation of sales person's vehicle 
D) direct materials used 
A) sales commissions 
B) depreciation of factory equipment and machines 
C) depreciation of sales person's vehicle 
D) direct materials used

Question 10

The Darwin Company reports the following information:   Product costs are

Accepted Answer

A) $24,500 
B) $30,300 
C) $29,200 
D) $35,000 
A) $24,500 
B) $30,300 
C) $29,200 
D) $35,000

Question 11

Depreciation on factory plant and equipment is an example of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 12

The following are some of the costs incurred by Cupcake Company.Identify them as either:
-Cupcake mix

Accepted Answer

A) Prime costs 
B) Conversion costs 
C) Both prime and conversion costs 
D) Neither prime or conversion costs 
A) Prime costs 
B) Conversion costs 
C) Both prime and conversion costs 
D) Neither prime or conversion costs

Question 13

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.

Accepted Answer

A) True 
 B)False

Question 14

Conversion costs are the combination of direct labor, direct material, and factory overhead costs.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not true in regards to direct materials for a bakery?

Accepted Answer

A) Flour and sugar would probably be direct materials. 
B) Eggs would probably be a direct material 
C) Oil to lubricate factory machines would not be a direct material. 
D) Paper cupcake liners, that become part of the product, must be accounted for as direct materials. 
A) Flour and sugar would probably be direct materials. 
B) Eggs would probably be a direct material 
C) Oil to lubricate factory machines would not be a direct material. 
D) Paper cupcake liners, that become part of the product, must be accounted for as direct materials.

Question 16

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

Accepted Answer

A) True 
 B)False

Question 17

All of the following would be reported on the balance sheet as a current asset except

Accepted Answer

A) factory overhead 
B) materials inventory 
C) finished goods inventory 
D) work in process inventory 
A) factory overhead 
B) materials inventory 
C) finished goods inventory 
D) work in process inventory

Question 18

Which of the following is an example of direct materials cost for an automobile manufacturer?

Accepted Answer

A) cost of oil lubricants for factory machinery 
B) cost of wages of assembly worker 
C) salary of production supervisor 
D) cost of interior upholstery 
A) cost of oil lubricants for factory machinery 
B) cost of wages of assembly worker 
C) salary of production supervisor 
D) cost of interior upholstery

Question 19

Finished goods inventory is reported on the

Accepted Answer

A) income statement as a period cost 
B) balance sheet as a long-term asset 
C) balance sheet as a current asset 
D) income statement as revenue 
A) income statement as a period cost 
B) balance sheet as a long-term asset 
C) balance sheet as a current asset 
D) income statement as revenue

Question 20

A cost object indicates how costs are related or identified.

Accepted Answer

A) True 
 B)False

Costs on the income statement for both a merchandiser and a manufacturer would be

Conversion costs are

Operating expenses are product costs and are expensed when the product is sold.

Managerial accounting provides useful information to managers on product costs.

Managerial accounting reports are

Match the items below for a bakery to the type of cost a-d. -Depreciation expense-factory

Match the items below for a bakery to the type of cost a-d. -Baker's wages

Labor costs that are directly traceable to the product are part of factory overhead.

Which of the following is part of factory overhead cost?

The Darwin Company reports the following information: Product costs are

Depreciation on factory plant and equipment is an example of factory overhead cost.

The following are some of the costs incurred by Cupcake Company.Identify them as either: -Cupcake mix

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.

Conversion costs are the combination of direct labor, direct material, and factory overhead costs.

Which of the following is not true in regards to direct materials for a bakery?

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

All of the following would be reported on the balance sheet as a current asset except

Which of the following is an example of direct materials cost for an automobile manufacturer?

Finished goods inventory is reported on the

A cost object indicates how costs are related or identified.

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

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Exam 1: Managerial Accounting Concepts and Principles

Costs on the income statement for both a merchandiser and a manufacturer would be

Conversion costs are

Operating expenses are product costs and are expensed when the product is sold.

Managerial accounting provides useful information to managers on product costs.

Managerial accounting reports are

Match the items below for a bakery to the type of cost a-d. -Depreciation expense-factory

Match the items below for a bakery to the type of cost a-d. -Baker's wages

Labor costs that are directly traceable to the product are part of factory overhead.

Which of the following is part of factory overhead cost?

The Darwin Company reports the following information: Product costs are

Depreciation on factory plant and equipment is an example of factory overhead cost.

The following are some of the costs incurred by Cupcake Company.Identify them as either: -Cupcake mix

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.

Conversion costs are the combination of direct labor, direct material, and factory overhead costs.

Which of the following is not true in regards to direct materials for a bakery?

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

All of the following would be reported on the balance sheet as a current asset except

Which of the following is an example of direct materials cost for an automobile manufacturer?

Finished goods inventory is reported on the

A cost object indicates how costs are related or identified.

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters