Question 1

What term is used to refer 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

Goods that are partially completed by a manufacturer are referred to as:

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 3

Period costs are operating costs that are expensed in the period in which the goods are sold.

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

Work in process inventory on December 31, 2011, is $42,000. Work in process inventory decreased by 40% during 2011. Total manufacturing costs incurred in 2011 amount to $260,000. What is cost of goods manufactured?

Accepted Answer

A)  $232,000 
B)  $302,000 
C)  $288,000 
D)  $190,000 
A)  $232,000 
B)  $302,000 
C)  $288,000 
D)  $190,000

Question 6

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 7

Match between columns
                        Premises: insurance expired on administrative facilities
utilities on factory building
indirect materials used
salespersons’ salaries
utilities on administrative facilities
factory equipment depreciation
direct materials used
direct labor incurred
office equipment depreciation
indirect labor incurred
administrative office salaries

Accepted Answer

The Answer of indirect and neither and direct is...

Question 8

The vice presidents of production and sales and the controller hold line positions in most large organizations.

Accepted Answer

A) True 
 B)False

Question 9

The Zoe Corporation has the following information for the month March. Determine the (a) cost of goods manufactured, and (b) cost of goods sold.

Accepted Answer

The answer of The Zoe Corporation has the following information...

Question 10

The following are all product costs except:

Accepted Answer

A)  Direct materials 
B)  Sales and administrative expenses 
C)  Direct labor 
D)  Factory overhead 
A)  Direct materials 
B)  Sales and administrative expenses 
C)  Direct labor 
D)  Factory overhead

Question 11

Laramie Technologies had the following data:
Cost of Materials Used $50,000
Direct Labor costs $56,000
Factory Overhead $28,000
Work in Process, beg. $45,000
Work in Process, end. $32,000
Show your calculations to determine the Cost of Goods Manufactured.

Accepted Answer

$50,000 + $56,000 +

Question 12

Reedy Company reports the following information for 2012:  Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31, 2012, is:

Accepted Answer

A)  $16,250 
B)  $8,500 
C)  $18,750 
D)  $13,500 
A)  $16,250 
B)  $8,500 
C)  $18,750 
D)  $13,500

Question 13

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as:

Accepted Answer

A)  factory overhead cost 
B)  miscellaneous expense 
C)  product costs 
D)  period cost 
A)  factory overhead cost 
B)  miscellaneous expense 
C)  product costs 
D)  period cost

Question 14

All of the following are ways that managers use managerial information except

Accepted Answer

A)  to evaluate the company's stock performance 
B)  to evaluate the performance of a company's operations 
C)  to support long-term planning decisions 
D)  to determine the cost of manufacturing a product 
A)  to evaluate the company's stock performance 
B)  to evaluate the performance of a company's operations 
C)  to support long-term planning decisions 
D)  to determine the cost of manufacturing a product

Question 15

Prime costs are

Accepted Answer

A)  direct materials and factory overhead 
B)  direct materials and direct labor 
C)  direct labor and factory overhead 
D)  period costs and factory overhead 
A)  direct materials and factory overhead 
B)  direct materials and direct labor 
C)  direct labor and factory overhead 
D)  period costs and factory overhead

Question 16

The Sharpe Company reports the following information for 2015:   Determine product costs for 2015.

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 17

Product costs are also referred to as inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 18

Prime costs consist of factory overhead and direct labor.

Accepted Answer

A) True 
 B)False

Question 19

Managerial accounting reports are prepared according to generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 20

Beginning work in process is equal to:

Accepted Answer

A)  cost of goods manufactured plus ending work in process minus manufacturing costs incurred during the current period 
B)  cost of goods manufactured minus ending work in process plus manufacturing costs incurred during the current period 
C)  ending work in process plus manufacturing costs incurred during the current period 
D)  manufacturing costs incurred during the current period minus ending work in process 
A)  cost of goods manufactured plus ending work in process minus manufacturing costs incurred during the current period 
B)  cost of goods manufactured minus ending work in process plus manufacturing costs incurred during the current period 
C)  ending work in process plus manufacturing costs incurred during the current period 
D)  manufacturing costs incurred during the current period minus ending work in process

Exam 16: Managerial Accounting Concepts and Principles

What term is used to refer to the cost of changing direct materials into a finished manufactured product?

Goods that are partially completed by a manufacturer are referred to as:

Period costs are operating costs that are expensed in the period in which the goods are sold.

Which of the following is most associated with managerial accounting?

Work in process inventory on December 31, 2011, is $42,000. Work in process inventory decreased by 40% during 2011. Total manufacturing costs incurred in 2011 amount to $260,000. What is cost of goods manufactured?

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost.

The vice presidents of production and sales and the controller hold line positions in most large organizations.

The Zoe Corporation has the following information for the month March. Determine the (a) cost of goods manufactured, and (b) cost of goods sold.

The following are all product costs except:

Laramie Technologies had the following data: Cost of Materials Used $50,000 Direct Labor costs $56,000 Factory Overhead $28,000 Work in Process, beg. $45,000 Work in Process, end. $32,000 Show your calculations to determine the Cost of Goods Manufactured.

Reedy Company reports the following information for 2012: Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31, 2012, is:

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as:

All of the following are ways that managers use managerial information except

Prime costs are

The Sharpe Company reports the following information for 2015: Determine product costs for 2015.

Product costs are also referred to as inventoriable costs.

Prime costs consist of factory overhead and direct labor.

Managerial accounting reports are prepared according to generally accepted accounting principles.

Beginning work in process is equal to:

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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 and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

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