Question 1

Manufacturing costs incurred in an accounting period cannot be included in the cost of goods sold for the subsequent accounting period.

Accepted Answer

A) True 
 B)False

Question 2

Complete the following chart by placing an "X" under the applicable column headings.Classify each cost as a fixed cost or a variable cost and as either a direct or indirect product cost or a period cost.

Accepted Answer

The answer of Complete the following chart by placing an...

Question 3

The Finished Goods Inventory and the Cost of Goods Sold for a manufacturing company for the year 2014 are as follows: May 1 Finished Goods Inventory,$470,500;May 31 Finished Goods Inventory,$125,000;Cost of Goods Sold for the year,$1,110,000.The cost of goods manufactured for the month was

Accepted Answer

A) $1,455,500. 
B) $595,500. 
C) $985,000. 
D) $764,500. 
A) $1,455,500. 
B) $595,500. 
C) $985,000. 
D) $764,500.

Question 4

The Chief Financial Officer (CFO)of your company has asked you to help her develop a cost control report to be distributed within the company.She wants your input concerning what she should think about before developing such a report.Discuss the significant points,in detail,the CFO should consider before the cost control report is prepared.
In addition to identifying the Why,Who,What,and When of the report,students should address the specific points that need to be considered under each topic.

Accepted Answer

Why: What is the purpose of the report?

Question 5

Fill in the missing data for Company B:

Accepted Answer

a.$12,000
b.$8,000
c

Question 6

Which of the following is not a stage in the management process?

Accepted Answer

A) Evaluating 
B) Communicating 
C) Planning 
D) Recording 
A) Evaluating 
B) Communicating 
C) Planning 
D) Recording

Question 7

Which of the following documents initiates the purchasing of materials?

Accepted Answer

A) Job order cost sheet 
B) Receiving report 
C) Purchase request 
D) Purchase order 
A) Job order cost sheet 
B) Receiving report 
C) Purchase request 
D) Purchase order

Question 8

In a manufacturing environment,direct labor costs initially flow

Accepted Answer

A) into the Materials Inventory account. 
B) into the Cost of Goods Sold account. 
C) into the Work in Process Inventory account. 
D) into the Finished Goods Inventory account. 
A) into the Materials Inventory account. 
B) into the Cost of Goods Sold account. 
C) into the Work in Process Inventory account. 
D) into the Finished Goods Inventory account.

Question 9

Which of the following activities is not a part of the "perform" stage in the management process?

Accepted Answer

A) Producing products as per customer specifications 
B) Manage supply chain relationships 
C) Identifying operating activities that minimize waste 
D) Calculating variances by comparing estimated and actual costs 
A) Producing products as per customer specifications 
B) Manage supply chain relationships 
C) Identifying operating activities that minimize waste 
D) Calculating variances by comparing estimated and actual costs

Question 10

Which of the following costs is not an inventoriable cost?

Accepted Answer

A) Cost to ship products to a customer 
B) Cost of factory machinery used in production 
C) Cost to design the product 
D) Plant supervisor's salary 
A) Cost to ship products to a customer 
B) Cost of factory machinery used in production 
C) Cost to design the product 
D) Plant supervisor's salary

Question 11

All manufacturing costs incurred and assigned to products that are being produced are classified as

Accepted Answer

A) variable costs. 
B) allocated costs. 
C) product costs. 
D) overhead costs. 
A) variable costs. 
B) allocated costs. 
C) product costs. 
D) overhead costs.

Question 12

The factory personnel whose wages are traceable directly to a product include

Accepted Answer

A) maintenance personnel. 
B) support personnel. 
C) factory supervisors. 
D) employees who help to shape the product. 
A) maintenance personnel. 
B) support personnel. 
C) factory supervisors. 
D) employees who help to shape the product.

Question 13

Which of the following contains period costs?

Accepted Answer

A) Work in Process Inventory 
B) Finished Goods Inventory 
C) Cost of Goods Sold 
D) Selling and administrative expenses 
A) Work in Process Inventory 
B) Finished Goods Inventory 
C) Cost of Goods Sold 
D) Selling and administrative expenses

Question 14

The presentation of merchandise inventory on the balance sheet of a merchandising company most nearly resembles the presentation of __________ inventory on the balance sheet of a manufacturing company.

Accepted Answer

A) materials 
B) finished goods 
C) manufacturing supplies 
D) work in process 
A) materials 
B) finished goods 
C) manufacturing supplies 
D) work in process

Question 15

The following are costs for a selected period: direct materials used in production,$75,000;direct labor cost of converting materials into product,$150,000;total indirect costs of manufacturing,$45,000.What is the unit cost of manufacturing 30,000 units in this period?

Accepted Answer

A) $7.50 
B) $9.00 
C) $6.00 
D) $4.00 
A) $7.50 
B) $9.00 
C) $6.00 
D) $4.00

Question 16

Which of the following terms apply to materials and supplies that can be traced conveniently to specific products?

Accepted Answer

A) Indirect materials 
B) Indirect manufacturing costs 
C) Direct costs 
D) Manufacturing overhead 
A) Indirect materials 
B) Indirect manufacturing costs 
C) Direct costs 
D) Manufacturing overhead

Question 17

Financial accounting information is confidential and private.

Accepted Answer

A) True 
 B)False

Question 18

Management accountants who alter reports to meet targeted levels of performance are not acting unethically,because their job is to provide information that will aid in communicating the goals of the business.

Accepted Answer

A) True 
 B)False

Question 19

Salaries of supervisory production personnel should be classified as direct labor costs.

Accepted Answer

A) True 
 B)False

Question 20

Both product costs and period costs could appear on the balance sheet.

Accepted Answer

A) True 
 B)False

Exam 17: Managerial Accounting and Cost Concepts

Manufacturing costs incurred in an accounting period cannot be included in the cost of goods sold for the subsequent accounting period.

Complete the following chart by placing an "X" under the applicable column headings.Classify each cost as a fixed cost or a variable cost and as either a direct or indirect product cost or a period cost.

The Finished Goods Inventory and the Cost of Goods Sold for a manufacturing company for the year 2014 are as follows: May 1 Finished Goods Inventory,$470,500;May 31 Finished Goods Inventory,$125,000;Cost of Goods Sold for the year,$1,110,000.The cost of goods manufactured for the month was

Fill in the missing data for Company B:

Which of the following is not a stage in the management process?

Which of the following documents initiates the purchasing of materials?

In a manufacturing environment,direct labor costs initially flow

Which of the following activities is not a part of the "perform" stage in the management process?

Which of the following costs is not an inventoriable cost?

All manufacturing costs incurred and assigned to products that are being produced are classified as

The factory personnel whose wages are traceable directly to a product include

Which of the following contains period costs?

The presentation of merchandise inventory on the balance sheet of a merchandising company most nearly resembles the presentation of __________ inventory on the balance sheet of a manufacturing company.

The following are costs for a selected period: direct materials used in production,$75,000;direct labor cost of converting materials into product,$150,000;total indirect costs of manufacturing,$45,000.What is the unit cost of manufacturing 30,000 units in this period?

Which of the following terms apply to materials and supplies that can be traced conveniently to specific products?

Financial accounting information is confidential and private.

Management accountants who alter reports to meet targeted levels of performance are not acting unethically,because their job is to provide information that will aid in communicating the goals of the business.

Salaries of supervisory production personnel should be classified as direct labor costs.

Both product costs and period costs could appear on the balance sheet.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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