Question 1

Which of the following are reported on the income statement as part of cost of goods?

Accepted Answer

A)  administrative expenses 
B)  period costs 
C)  cost of goods manufactured 
D)  operating expenses

Question 2

All of the following would be reported on the balance sheet as a current asset except

Accepted Answer

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

Question 3

A cost can be a payment of cash for the purpose of generating revenues.

Accepted Answer

A) True 
 B)False

Question 4

A company sells goods for $150,000 that cost $54,000 to manufacture. Which statement is true?

Accepted Answer

A)  The company will recognize sales on the balance sheet of $150,000. 
B)  The company will recognize $96,000 gross profit on the balance sheet. 
C)  The company will decrease finished goods by $54,000. 
D)  The company will increase finished goods by $54,000.

Question 5

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 6

For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given.
-Delivery costs to take the bicycles to stores

Accepted Answer

A) Product 
B) Period

Question 7

Match the items below for a bakery to the type of cost a-d).
-Salesman commissions

Accepted Answer

A) Direct materials 
B) Direct labor 
C) Factory overhead 
D) Non-manufacturing cost

Question 8

Managerial accounting uses only past data in reports to aid management in the decision making process.

Accepted Answer

A) True 
 B)False

Question 9

The payment of dividends is an example of a cost.

Accepted Answer

A) True 
 B)False

Question 10

The phases of the management process are listed below. Match each phase to the appropriate description.
Planning
Directing
Controlling
Improving
Decision making
a) Used by managers for continuous improvement
b) Managers must decide how to respond to unfavorable performances
c) Used by management to develop the organization's objectives and goals
d) Monitoring the operating results of implemented plans and comparing actual results to expected results
e) Process by which managers run day-to-day operations

Accepted Answer

The answer of The phases of the management process are...

Question 11

On the income statement of a manufacturing company, what replaces purchases in the cost of goods sold section of a retail company?

Accepted Answer

A)  finished goods 
B)  cost of merchandise available 
C)  cost of goods manufactured 
D)  work in process

Question 12

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

Question 13

Cost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000. Work in process inventory during the year decreased by 60%. Total manufacturing costs incurred are

Accepted Answer

A)  $190,000 
B)  $165,000 
C)  $290,000 
D)  $315,000

Question 14

What is the purpose of the statement of cost of goods manufactured?

Accepted Answer

A)  to determine the ending materials inventory 
B)  to determine the ending work in process inventory 
C)  to determine the amounts transferred to finished goods 
D)  all of these

Question 15

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 16

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except

Accepted Answer

A)  provide objective measures of past operations and subjective estimates about future decisions 
B)  be prepared in accordance with generally accepted accounting principles 
C)  be provided at any time management needs information 
D)  be prepared to report information for any unit of the business to support decision making

Question 17

Direct labor costs are included in the conversion costs of a product.

Accepted Answer

A) True 
 B)False

Question 18

The following data in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year.

Accepted Answer

The answer of The following data in thousands of dollars)...

Question 19

The Darwin Company reports the following information: $$\begin{array} { | l | l | } 
\hline \text { Sales } & \$ 76,500 \
\hline \text { Direct materials used } & 7,300 \
\hline \text { Depreciati on on factory equipment } & 4,700 \
\hline \text { Indirect labor } & 5,900 \
\hline \text { Direct labor } & 10,500 \
\hline \text { Factory rent } & 4,200 \
\hline \text { Factory utilities } & 1,200 \
\hline \text { Sales salaries expense } & 15,600 \
\hline \text { Office salaries expense } & 8,900 \
\hline \text { Indirect materials } & 1,200 \
\hline
\end{array}$$ Product costs are

Accepted Answer

A)  $24,500 
B)  $30,300 
C)  $29,200 
D)  $35,000

Question 20

Factory overhead is an example of a product cost.

Accepted Answer

A) True 
 B)False

Exam 16: Managerial Accounting Concepts and Principles

Which of the following are reported on the income statement as part of cost of goods?

All of the following would be reported on the balance sheet as a current asset except

A cost can be a payment of cash for the purpose of generating revenues.

A company sells goods for $150,000 that cost $54,000 to manufacture. Which statement is true?

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.

For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given. -Delivery costs to take the bicycles to stores

Match the items below for a bakery to the type of cost a-d) . -Salesman commissions

Managerial accounting uses only past data in reports to aid management in the decision making process.

The payment of dividends is an example of a cost.

On the income statement of a manufacturing company, what replaces purchases in the cost of goods sold section of a retail company?

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

Cost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000. Work in process inventory during the year decreased by 60%. Total manufacturing costs incurred are

What is the purpose of the statement of cost of goods manufactured?

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except

Direct labor costs are included in the conversion costs of a product.

The following data in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year.

Factory overhead is an example of a product cost.