Question 1

Finished goods inventory is reported on the

Accepted Answer

A)   income statement as a period cost
B)   balance sheet as a long-term asset
C)   balance sheet as a current asset
D)   income statement as revenueE) B) and C)
F) A) and B)

Question 2

Prime costs consist of factory overhead and direct labor.

Accepted Answer

A) True 
 B)False

Question 3

A staff department has no direct authority over a line department.

Accepted Answer

A) True 
 B)False

Question 4

In most business organizations, the chief accountant is called the treasurer.

Accepted Answer

A) True 
 B)False

Question 5

Product costs are not expensed until the product is sold.

Accepted Answer

A) True 
 B)False

Question 6

The controller's staff consists of management accountants responsible for systems and procedures, general accounting, budgets, taxes, and cost accounting.

Accepted Answer

A) True 
 B)False

Question 7

Product costs include direct labor and advertising expense.

Accepted Answer

A) True 
 B)False

Question 8

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factory overhead costs during the period.  If beginning and ending work in process inventories were $28,000 and $32,000, respectively, the cost of goods manufactured was

Accepted Answer

A)   $218,000
B)   $226,000
C)   $190,000
D)   $222,000E) All of the above
F) B) and C)

Question 9

What is the primary criterion for the preparation of managerial accounting reports?

Accepted Answer

A)   relevance of the reports
B)   manager needs
C)   timing of the reports
D)   cost of the reportsE) B) and C)
F) A) and B)

Question 10

The following information is taken from the financial records of Gunner Manufacturing:
Cost of materials used                  $45,000
Direct labor costs                           48,000
Factory overhead                            39,000
Work in process, beginning             18,000
Work in process, ending                 28,000
What is the cost of goods manufactured?

Accepted Answer

A)   $178,000
B)   $132,000
C)   $122,000
D)   $142,000E) A) and D)
F) B) and C)

Question 11

A diagram of the operating structure of an organization is called an organization chart.

Accepted Answer

A) True 
 B)False

Question 12

Managerial accounting reports are designed to meet the specific needs of a company's management.

Accepted Answer

A) True 
 B)False

Question 13

Factory overhead is an example of a product cost.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

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

Accepted Answer

A)   $232,000
B)   $302,000
C)   $288,000
D)   $190,000E) All of the above
F) A) and D)

Question 16

Identify the following costs as a (a) Product Cost or (b) Period Cost for a cake factory. 
 
1. _____ Frosting 
2. _____ Baker's wages 
3. _____ Advertising fees 
4. _____ Transportation out

Accepted Answer

1. a
2. a...

Question 17

A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Which of the following will not be found on the balance sheet of a manufacturing company?

Accepted Answer

A)   cost of goods sold
B)   materials
C)   work in process
D)   finished goodsE) All of the above
F) B) and D)

Question 20

All of the following are examples of indirect labor except

Accepted Answer

A)   maintenance personnel
B)   janitorial personnel
C)   machine operators
D)   plant managersE) B) and C)
F) None of the above

Exam 1: Introduction to Managerial Accounting

The following information is taken from the financial records of Gunner Manufacturing: Cost of materials used $45,000 Direct labor costs 48,000 Factory overhead 39,000 Work in process, beginning 18,000 Work in process, ending 28,000 What is the cost of goods manufactured?

Correct AnswerverifiedShow Answer

The controller's staff consists of management accountants responsible for systems and procedures, general accounting, budgets, taxes, and cost accounting.

Correct AnswerverifiedShow Answer

Product costs are not expensed until the product is sold.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

All of the following are examples of indirect labor except

Correct AnswerverifiedShow Answer

A staff department has no direct authority over a line department.

Correct AnswerverifiedShow Answer

Finished goods inventory is reported on the

Correct AnswerverifiedShow Answer

Managerial accounting reports are designed to meet the specific needs of a company's management.

Correct AnswerverifiedShow Answer

In most business organizations, the chief accountant is called the treasurer.

Correct AnswerverifiedShow Answer

Product costs include direct labor and advertising expense.

Correct AnswerverifiedShow Answer

A diagram of the operating structure of an organization is called an organization chart.

Correct AnswerverifiedShow Answer

Prime costs consist of factory overhead and direct labor.

Correct AnswerverifiedShow Answer

Identify the following costs as a (a) Product Cost or (b) Period Cost for a cake factory. 1. _____ Frosting 2. _____ Baker's wages 3. _____ Advertising fees 4. _____ Transportation out

Correct Answerverified1. a 2. a...View AnswerShow Answer

Which of the following will not be found on the balance sheet of a manufacturing company?

Correct AnswerverifiedShow Answer

A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report.

Correct AnswerverifiedShow Answer

Factory overhead is an example of a product cost.

Correct AnswerverifiedShow Answer

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factory overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $32,000, respectively, the cost of goods manufactured was

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is the primary criterion for the preparation of managerial accounting reports?

Correct AnswerverifiedShow Answer

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Identify the following costs as a (a) Product Cost or (b) Period Cost for a cake factory. 1. ___ Frosting 2. _ Baker's wages 3. _ Advertising fees 4. ___ Transportation out

Correct Answer
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1. a
2. a...
View Answer

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