Question 1

Allocation means that an indirect cost is assigned to a cost object using a reasonable and convenient method.

Accepted Answer

A) True 
 B)False

Question 2

Select the appropriate classification of the items listed below.
-Cost of engines in the manufacture of airplanes

Accepted Answer

A) selling expense 
B) administrative expense 
C) direct materials 
D) direct labor 
E) overhead 
A) selling expense 
B) administrative expense 
C) direct materials 
D) direct labor 
E) overhead

Question 3

On a manufacturer's income statement expenses are separated into the following three categories:

Accepted Answer

A)  production, period, and indirect 
B)  materials, work in process, and finished goods 
C)  production, selling, and administrative 
D)  variable, fixed, and direct 
A)  production, period, and indirect 
B)  materials, work in process, and finished goods 
C)  production, selling, and administrative 
D)  variable, fixed, and direct

Question 4

Select the appropriate definition for each of the items listed below.
-(total manufacturing costs + work in process beginning − work in process ending)/units produced

Accepted Answer

A) per-unit prime cost 
B) per-unit conversion cost 
C) per-unit cost of goods manufactured 
A) per-unit prime cost 
B) per-unit conversion cost 
C) per-unit cost of goods manufactured

Question 5

Select the appropriate classification of the items listed below.
-Cost of shipping goods to customers

Accepted Answer

A) selling expense 
B) administrative expense 
C) direct materials 
D) direct labor 
E) overhead 
A) selling expense 
B) administrative expense 
C) direct materials 
D) direct labor 
E) overhead

Question 6

In July, Noel & Vang Company purchased materials costing $23,100 and incurred direct labor cost of $19,800.Manufacturing overhead totaled $35,200 for the month.Information on inventories was as follows:

- 
What was the cost of goods manufactured for July?

Accepted Answer

A)  $70,500 
B)  $70,700 
C)  $76,560 
D)  $76,650 
A)  $70,500 
B)  $70,700 
C)  $76,560 
D)  $76,650

Question 7

All product costs other than direct materials and direct labor are put into a category called _________________________.

Accepted Answer

manufactur

Question 8

Operating income equals

Accepted Answer

A)  sales revenue − cost of goods sold − selling and administrative expense 
B)  gross margin − selling expenses 
C)  sales revenue − cost of goods sold 
D)  sales revenue − selling and administrative expenses 
A)  sales revenue − cost of goods sold − selling and administrative expense 
B)  gross margin − selling expenses 
C)  sales revenue − cost of goods sold 
D)  sales revenue − selling and administrative expenses

Question 9

Hendrix & Franks Company had the following beginning and ending inventory balances for the current year ended December 31:  
  In addition, direct labor costs of $33,000 were incurred, manufacturing overhead equaled $46,200, materials purchased were $29,700, and selling and administrative costs were $24,200.Hendrix & Franks Co.sold 27,500 units of product during the year at a sales price of $5.25 per unit.
-What was the amount of cost of goods manufactured for the year?

Accepted Answer

A)  $101,000 
B)  $124,000 
C)   $100,000 
D)   $112,200 
A)  $101,000 
B)  $124,000 
C)   $100,000 
D)   $112,200

Question 10

Insurance coverage, medical care, and accounting are examples of _________________ performed for customers.

Accepted Answer

service ac

Question 11

Select the appropriate definition for each of the items listed below.
-A cost that is difficult to trace to a cost object

Accepted Answer

A) period cost 
B) direct cost 
C) opportunity cost 
D) variable cost 
E) indirect cost
F)fixed cost
G)product cost 
A) period cost 
B) direct cost 
C) opportunity cost 
D) variable cost 
E) indirect cost
F)fixed cost
G)product cost

Question 12

Last year, Buckner & Jones Company incurred the following costs: 
  Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each.Assume that beginning and ending inventories of materials, work in process, and finished goods were zero.
-What was the conversion cost per unit? (Note: Round answer to two decimal places.)

Accepted Answer

A)  $50.55 
B)  $76.46 
C)  $95.00 
D)  $125.65 
A)  $50.55 
B)  $76.46 
C)  $95.00 
D)  $125.65

Question 13

Gross margin percent equals

Accepted Answer

A)  gross margin/cost of goods sold. 
B)  operating income/sales revenue. 
C)  gross margin/sales revenue. 
D)  sales revenue/gross margin. 
A)  gross margin/cost of goods sold. 
B)  operating income/sales revenue. 
C)  gross margin/sales revenue. 
D)  sales revenue/gross margin.

Question 14

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles.
-salary of chief executive officer

Accepted Answer

A) direct materials 
B) direct labor 
C) overhead 
D) selling expense 
E) administrative expense 
A) direct materials 
B) direct labor 
C) overhead 
D) selling expense 
E) administrative expense

Question 15

Taylor & Edwards Inc.manufactures television sets.Last month, direct materials (electronic components, etc.) costing $550,000 were put into production.Direct labor of $880,000 was incurred, manufacturing overhead equaled $495,000, and selling and administrative costs totaled $396,000.The company manufactured 8,400 television sets during the month.Assume that there were no beginning or ending work in process balances.What was the amount of cost of goods manufactured last month?

Accepted Answer

A)  $1,925,000 
B)  $1,250,000 
C)  $1,300,000 
D)  $2,110,000 
A)  $1,925,000 
B)  $1,250,000 
C)  $1,300,000 
D)  $2,110,000

Question 16

Knowles & Foreman Company took the following data from its income statement at the end of the current year:  
-  How many units were sold during the year?

Accepted Answer

A)  3,333 units 
B)  1,000 units 
C)  1,500 units 
D)  1,680 units 
A)  3,333 units 
B)  1,000 units 
C)  1,500 units 
D)  1,680 units

Question 17

Which of the following statements is true of cost?

Accepted Answer

A)  Cost is the difference between gross margin and operating expenses. 
B)  Cost and price are always same for the owner of a company. 
C)  Cost is a dollar measure of the resources used to achieve a given benefit. 
D)  Cost is the revenue per unit. 
A)  Cost is the difference between gross margin and operating expenses. 
B)  Cost and price are always same for the owner of a company. 
C)  Cost is a dollar measure of the resources used to achieve a given benefit. 
D)  Cost is the revenue per unit.

Question 18

Wright & Boyle Inc.had the following income statement for the month of May: 
-  What was the operating income percent? (Note: Round your answer to two decimal places.)

Accepted Answer

A)  15.75% 
B)  19.65% 
C)  17.55% 
D)  19.52% 
A)  15.75% 
B)  19.65% 
C)  17.55% 
D)  19.52%

Question 19

Select the appropriate classification for each of the items listed below.
-Cost of conference for sales team

Accepted Answer

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

Question 20

Select the appropriate classification for each of the following costs.
-Assembly line worker's wages

Accepted Answer

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

Allocation means that an indirect cost is assigned to a cost object using a reasonable and convenient method.

Select the appropriate classification of the items listed below. -Cost of engines in the manufacture of airplanes

On a manufacturer's income statement expenses are separated into the following three categories:

Select the appropriate definition for each of the items listed below. -(total manufacturing costs + work in process beginning − work in process ending)/units produced

Select the appropriate classification of the items listed below. -Cost of shipping goods to customers

In July, Noel & Vang Company purchased materials costing $23,100 and incurred direct labor cost of $19,800.Manufacturing overhead totaled $35,200 for the month.Information on inventories was as follows: - What was the cost of goods manufactured for July?

All product costs other than direct materials and direct labor are put into a category called _________________________.

Operating income equals

Insurance coverage, medical care, and accounting are examples of _________________ performed for customers.

Select the appropriate definition for each of the items listed below. -A cost that is difficult to trace to a cost object

Gross margin percent equals

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -salary of chief executive officer

Knowles & Foreman Company took the following data from its income statement at the end of the current year: - How many units were sold during the year?

Which of the following statements is true of cost?

Wright & Boyle Inc.had the following income statement for the month of May: - What was the operating income percent? (Note: Round your answer to two decimal places.)

Select the appropriate classification for each of the items listed below. -Cost of conference for sales team

Select the appropriate classification for each of the following costs. -Assembly line worker's wages

Introduction to Managerial Accounting

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Basic Managerial Accounting Concepts

Allocation means that an indirect cost is assigned to a cost object using a reasonable and convenient method.

Select the appropriate classification of the items listed below. -Cost of engines in the manufacture of airplanes

On a manufacturer's income statement expenses are separated into the following three categories:

Select the appropriate definition for each of the items listed below. -(total manufacturing costs + work in process beginning − work in process ending)/units produced

Select the appropriate classification of the items listed below. -Cost of shipping goods to customers

In July, Noel & Vang Company purchased materials costing $23,100 and incurred direct labor cost of $19,800.Manufacturing overhead totaled $35,200 for the month.Information on inventories was as follows: - What was the cost of goods manufactured for July?

All product costs other than direct materials and direct labor are put into a category called _________________________.

Operating income equals

Insurance coverage, medical care, and accounting are examples of _________________ performed for customers.

Select the appropriate definition for each of the items listed below. -A cost that is difficult to trace to a cost object

Gross margin percent equals

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -salary of chief executive officer

Knowles & Foreman Company took the following data from its income statement at the end of the current year: - How many units were sold during the year?

Which of the following statements is true of cost?

Wright & Boyle Inc.had the following income statement for the month of May: - What was the operating income percent? (Note: Round your answer to two decimal places.)

Select the appropriate classification for each of the items listed below. -Cost of conference for sales team

Select the appropriate classification for each of the following costs. -Assembly line worker's wages

Introduction to Managerial Accounting

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters