Question 1

What term refers to the cost of changing direct materials into a finished manufactured product?

Accepted Answer

A)  factory overhead cost 
B)  period cost 
C)  conversion cost 
D)  direct labor cost 
A)  factory overhead cost 
B)  period cost 
C)  conversion cost 
D)  direct labor cost

Question 2

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 3

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 4

Which of the following is most associated with managerial accounting?

Accepted Answer

A)  must follow GAAP 
B)  may rely on estimates and forecasts 
C)  is prepared for users outside the organization 
D)  always reports on the entire entity 
A)  must follow GAAP 
B)  may rely on estimates and forecasts 
C)  is prepared for users outside the organization 
D)  always reports on the entire entity

Question 5

Only the value of the inventory that is sold will appear on the income statement.

Accepted Answer

A) True 
 B)False

Question 6

Bartel Corporation produces bar stools for restaurants.For each of the following,indicate whether the cost would typically be considered direct or indirect cost for the cost object given.
-Lubricants used on the bar stool manufacturing equipment

Accepted Answer

A) Direct 
B) Indirect 
A) Direct 
B) Indirect

Question 7

For each of the following,indicate whether the cost would typically be considered product or period cost for the cost object given.
-Accountant salaries

Accepted Answer

A) Product 
B) Period 
A) Product 
B) Period

Question 8

The controller's staff consists of management accountants responsible for systems and procedures,general accounting,budgets,taxes,and cost accounting.

Accepted Answer

A) True 
 B)False

Question 9

If the cost of materials is not a significant portion of the total product cost,the materials may be classified as part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 10

Managerial accounting provides useful information to managers on product costs.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Goods that are partially completed by a manufacturer are

Accepted Answer

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

Question 14

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

Question 15

Product costs

Accepted Answer

A)  appear only on the balance sheet 
B)  appear only on the income statement 
C)  are expensed as costs are incurred for direct labor,direct material,and factory overhead 
D)  appear on both the income statement and balance sheet 
A)  appear only on the balance sheet 
B)  appear only on the income statement 
C)  are expensed as costs are incurred for direct labor,direct material,and factory overhead 
D)  appear on both the income statement and balance sheet

Question 16

Which of the following statements is false?

Accepted Answer

A)  There is no overlap between financial and managerial accounting. 
B)  Managerial accounting sometimes relies on past information. 
C)  Managerial accounting does not need to conform to GAAP. 
D)  Financial accounting must conform to GAAP. 
A)  There is no overlap between financial and managerial accounting. 
B)  Managerial accounting sometimes relies on past information. 
C)  Managerial accounting does not need to conform to GAAP. 
D)  Financial accounting must conform to GAAP.

Question 17

Given the following data: ​
​
  Direct materials used is

Accepted Answer

A)  $2,000 
B)  $4,000 
C)  $8,000 
D)  $14,000 
A)  $2,000 
B)  $4,000 
C)  $8,000 
D)  $14,000

Question 18

Accounting designed to meet the needs of decision makers inside the business is

Accepted Answer

A)  general accounting 
B)  financial accounting 
C)  managerial accounting 
D)  external accounting 
A)  general accounting 
B)  financial accounting 
C)  managerial accounting 
D)  external accounting

Question 19

Classify the following costs as direct,indirect,or neither:

Accepted Answer

a)Indirect b)Indirect c)Indire

Question 20

The following information is available for Carter Corporation:
1)Materials inventory decreased $4,000.
2)Materials inventory on December 31 was 50% of materials inventory on January 1.
3)Beginning work in process inventory was $145,000.
4)Ending finished goods inventory was $65,000.
5)Purchases of direct materials were $154,700.
6)Direct materials used were 2.5 times the cost of direct labor.
7)Total manufacturing costs incurred were $246,400,80% of cost of goods manufactured and $156,000 less than cost of goods sold.
​
Compute:
(a)Finished goods inventory on January 1
(b)Work in process inventory on December 31
(c)Direct labor incurred
(d)Factory overhead incurred
(e)Materials inventory on January 1
(f)Materials inventory on December 31
(g)Direct materials used
​

Accepted Answer

(a)Cost of goods sold = $246,400 + $156,

Exam 15: Introduction to Managerial Accounting

What term refers to the cost of changing direct materials into a finished manufactured product?

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

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

Which of the following is most associated with managerial accounting?

Only the value of the inventory that is sold will appear on the income statement.

Bartel Corporation produces bar stools for restaurants.For each of the following,indicate whether the cost would typically be considered direct or indirect cost for the cost object given. -Lubricants used on the bar stool manufacturing equipment

For each of the following,indicate whether the cost would typically be considered product or period cost for the cost object given. -Accountant salaries

The controller's staff consists of management accountants responsible for systems and procedures,general accounting,budgets,taxes,and cost accounting.

If the cost of materials is not a significant portion of the total product cost,the materials may be classified as part of factory overhead cost.

Managerial accounting provides useful information to managers on product costs.

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

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

Goods that are partially completed by a manufacturer are

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

Product costs

Which of the following statements is false?

Given the following data: ​ ​ Direct materials used is

Accounting designed to meet the needs of decision makers inside the business is

Classify the following costs as direct,indirect,or neither:

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising 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

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

Filters

Given the following data: Direct materials used is