Question 1

The revenue per unit is called cost.

Accepted Answer

A) True 
 B)False

Question 2

Select the appropriate classification for each of the items listed below.
-Rental cost of executive Lear jet

Accepted Answer

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

Question 3

Period costs

Accepted Answer

A)  are selling costs and administrative costs. 
B)  are used to compute product cost. 
C)  can be included in overhead costs. 
D)  are carried in inventory until the goods are sold. 
A)  are selling costs and administrative costs. 
B)  are used to compute product cost. 
C)  can be included in overhead costs. 
D)  are carried in inventory until the goods are sold.

Question 4

Conversion cost is the sum of

Accepted Answer

A)  product costs and period costs. 
B)  selling cost and administrative costs. 
C)  direct labor cost and direct materials costs. 
D)  direct labor cost and overhead costs. 
A)  product costs and period costs. 
B)  selling cost and administrative costs. 
C)  direct labor cost and direct materials costs. 
D)  direct labor cost and overhead costs.

Question 5

Accumulating costs is the way that costs are measured and recorded.

Accepted Answer

A) True 
 B)False

Question 6

Select the appropriate definition for each of the items listed below.
-A cost that can be easily traced 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 7

Which of the following is true of price?

Accepted Answer

A)  Price must be greater than cost for a firm to earn income. 
B)  Price is the difference between gross margin and the cost of goods sold. 
C)  Price is a dollar measure of the resources used to achieve a given benefit. 
D)  Price is the difference between cost per unit and income per unit. 
A)  Price must be greater than cost for a firm to earn income. 
B)  Price is the difference between gross margin and the cost of goods sold. 
C)  Price is a dollar measure of the resources used to achieve a given benefit. 
D)  Price is the difference between cost per unit and income per unit.

Question 8

Which of the following is an example of a tangible product?

Accepted Answer

A)  lawn care 
B)  accounting services 
C)  customer service 
D)  computer 
A)  lawn care 
B)  accounting services 
C)  customer service 
D)  computer

Question 9

Assigning costs tells the accountant who spent the money.

Accepted Answer

A) True 
 B)False

Question 10

Product costs

Accepted Answer

A)  are costs that are included in the determining the value of the inventory. 
B)  are manufacturing costs. 
C)  include direct materials, direct labor, and overhead. 
D)  are all of these. 
A)  are costs that are included in the determining the value of the inventory. 
B)  are manufacturing costs. 
C)  include direct materials, direct labor, and overhead. 
D)  are all of these.

Question 11

Price must be greater than cost in order for the firm to generate revenue.

Accepted Answer

A) True 
 B)False

Question 12

Hill & Scott Company makes financial calculators.During the current year, Hill & Scott manufactured 106,700 financial calculators.Finished goods inventory had the following units on hand: 
 
-  If each financial calculator had a per-unit product cost of $123.20, what was the cost of finished goods inventory on December 31? (Note: Round answer to two decimal places.)

Accepted Answer

A)  $140,940.80 
B)  $141,120.50 
C)  $24,640.75 
D)  None of these are correct. 
A)  $140,940.80 
B)  $141,120.50 
C)  $24,640.75 
D)  None of these are correct.

Question 13

An opportunity cost is:

Accepted Answer

A)  the benefit given up or sacrificed when one alternative is chosen over another. 
B)  the cost to market, distribute, and service a product or service. 
C)  expensed in the period in which it is incurred; it is not inventoried. 
D)  the difference between gross margin and operating expenses. 
A)  the benefit given up or sacrificed when one alternative is chosen over another. 
B)  the cost to market, distribute, and service a product or service. 
C)  expensed in the period in which it is incurred; it is not inventoried. 
D)  the difference between gross margin and operating expenses.

Question 14

Product costs include direct materials, direct labor, and selling costs.

Accepted Answer

A) True 
 B)False

Question 15

Indirect labor would include

Accepted Answer

A)  salary of the vice-president of marketing. 
B)  salary of CEO. 
C)  salary of factory supervisor. 
D)  none of these are correct. 
A)  salary of the vice-president of marketing. 
B)  salary of CEO. 
C)  salary of factory supervisor. 
D)  none of these are correct.

Question 16

Synergy Inc.manufactured 6,000 units during the month of March.They incurred direct materials cost of $120,000 and manufacturing overhead costs of $48,000.If their per-unit prime cost was $31.20 per unit, how much direct labor cost did it incur during March?

Accepted Answer

A)  $20,000 
B)  $35,000 
C)  $90,000 
D)  $67,200 
A)  $20,000 
B)  $35,000 
C)  $90,000 
D)  $67,200

Question 17

Select the appropriate classification for each of the items listed below.
-Factory security costs

Accepted Answer

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

Question 18

Cost of goods manufactured equals

Accepted Answer

A)  total product costs incurred during the current period + beginning work in process − ending work in process. 
B)  direct materials cost + direct labor cost + overhead cost. 
C)  sales − cost of goods sold. 
D)  none of these are correct. 
A)  total product costs incurred during the current period + beginning work in process − ending work in process. 
B)  direct materials cost + direct labor cost + overhead cost. 
C)  sales − cost of goods sold. 
D)  none of these are correct.

Question 19

Gross margin equals

Accepted Answer

A)  cost of goods sold − selling and administrative expenses. 
B)  direct materials + direct labor + manufacturing overhead. 
C)  sales revenue − cost of goods sold. 
D)  cost of goods manufactured + selling and administrative expenses. 
A)  cost of goods sold − selling and administrative expenses. 
B)  direct materials + direct labor + manufacturing overhead. 
C)  sales revenue − cost of goods sold. 
D)  cost of goods manufactured + selling and administrative expenses.

Question 20

Emarson & Slater Inc.had materials inventory of $13,200 on July 1.The materials inventory on July 31 was $16,500 and the cost of direct materials used in production was $22,000.What was the cost of materials purchased during the month?

Accepted Answer

A)  $25,300 
B)  $17,000 
C)  $35,000 
D)  $20,000 
A)  $25,300 
B)  $17,000 
C)  $35,000 
D)  $20,000

The revenue per unit is called cost.

Select the appropriate classification for each of the items listed below. -Rental cost of executive Lear jet

Period costs

Conversion cost is the sum of

Accumulating costs is the way that costs are measured and recorded.

Select the appropriate definition for each of the items listed below. -A cost that can be easily traced to a cost object

Which of the following is true of price?

Which of the following is an example of a tangible product?

Assigning costs tells the accountant who spent the money.

Product costs

Price must be greater than cost in order for the firm to generate revenue.

An opportunity cost is:

Product costs include direct materials, direct labor, and selling costs.

Indirect labor would include

Synergy Inc.manufactured 6,000 units during the month of March.They incurred direct materials cost of $120,000 and manufacturing overhead costs of $48,000.If their per-unit prime cost was $31.20 per unit, how much direct labor cost did it incur during March?

Select the appropriate classification for each of the items listed below. -Factory security costs

Cost of goods manufactured equals

Gross margin equals

Emarson & Slater Inc.had materials inventory of $13,200 on July 1.The materials inventory on July 31 was $16,500 and the cost of direct materials used in production was $22,000.What was the cost of materials purchased during the month?

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

Exam 2: Basic Managerial Accounting Concepts

The revenue per unit is called cost.

Select the appropriate classification for each of the items listed below. -Rental cost of executive Lear jet

Period costs

Conversion cost is the sum of

Accumulating costs is the way that costs are measured and recorded.

Select the appropriate definition for each of the items listed below. -A cost that can be easily traced to a cost object

Which of the following is true of price?

Which of the following is an example of a tangible product?

Assigning costs tells the accountant who spent the money.

Product costs

Price must be greater than cost in order for the firm to generate revenue.

An opportunity cost is:

Product costs include direct materials, direct labor, and selling costs.

Indirect labor would include

Synergy Inc.manufactured 6,000 units during the month of March.They incurred direct materials cost of $120,000 and manufacturing overhead costs of $48,000.If their per-unit prime cost was $31.20 per unit, how much direct labor cost did it incur during March?

Select the appropriate classification for each of the items listed below. -Factory security costs

Cost of goods manufactured equals

Gross margin equals

Emarson & Slater Inc.had materials inventory of $13,200 on July 1.The materials inventory on July 31 was $16,500 and the cost of direct materials used in production was $22,000.What was the cost of materials purchased during the month?

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