Question 1

Conversion cost is the combination of direct labor cost and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 2

The payment of dividends is an example of a cost.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Which one 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) A) and B)
F) A) and C)

Question 5

In most business organizations, the chief management accountant is called the:

Accepted Answer

A)   chief accounting officer
B)   controller
C)   chairman of the board
D)   chief executive officerE) A) and C)
F) All of the above

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Product costs

Accepted Answer

A)   appear only on the balance sheet
B)   appear only on the income statement
C)   are expensed as costs are incurred for direct labor, direct material and factory overhead
D)   appear on both the income statement and balance sheetE) All of the above
F) A) and B)

Question 8

Indirect labor would be included in factory overhead.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is false?

Accepted Answer

A)   There is no overlap between financial and managerial accounting.
B)   Managerial accounting sometimes relies on past information.
C)   Managerial accounting does not need to conform to GAAP
D)   Financial accounting must conform to GAAP.E) A) and D)
F) C) and D)

Question 10

Which of the following is an example of direct materials cost for an automobile manufacturer?

Accepted Answer

A)   Cost of oil lubricants for factory machinery
B)   Cost of wages of assembly worker
C)   Salary of production supervisor
D)   Cost of interior upholsteryE) A) and C)
F) B) and C)

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

Accepted Answer

A)   Investors
B)   Managers
C)   Shareholders
D)   CustomersE) A) and B)
F) A) and C)

Question 13

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

Accepted Answer

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

Question 14

Only the value of the inventory that is sold will appear in the income statement.

Accepted Answer

A) True 
 B)False

Question 15

Nonmanufacturing costs are classified into two categories: selling and administrative.

Accepted Answer

A) True 
 B)False

Question 16

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 costE) A) and B)
F) A) and C)

Question 17

Direct labor and direct materials are classified as:

Accepted Answer

A)   product costs and expensed when the goods are sold
B)   product costs and expensed when incurred
C)   period costs and expensed when incurred
D)   period costs and expensed when the goods are soldE) B) and D)
F) B) and C)

Question 18

Use the correct number to designate each item below:
1) direct materials
2) selling and administrative expense
3) factory overhead
4) direct labor

Accepted Answer

a) 3
b) 2
c) 3
d) 3
...

Question 19

Magnus Industries has the following data:
  Show how you would calculate Raw Materials Used.

Accepted Answer

$75,000 + $40,000 - ...

Question 20

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 productE) B) and C)
F) B) and D)

Exam 18: Managerial Accounting Concepts and Principles

In most business organizations, the chief management accountant is called the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Direct labor and direct materials are classified as:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Indirect labor would be included in factory overhead.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

Use the correct number to designate each item below: 1) direct materials 2) selling and administrative expense 3) factory overhead 4) direct labor

Correct Answerverifieda) 3b) 2c) 3d) 3...View AnswerShow Answer

Which of the following is an example of direct materials cost for an automobile manufacturer?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Only the value of the inventory that is sold will appear in the income statement.

Correct AnswerverifiedShow Answer

The payment of dividends is an example of a cost.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Nonmanufacturing costs are classified into two categories: selling and administrative.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Product costs

Correct AnswerverifiedShow Answer

Magnus Industries has the following data: Show how you would calculate Raw Materials Used.

Correct Answerverified$75,000 + $40,000 - ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Conversion cost is the combination of direct labor cost and factory overhead cost.

Correct AnswerverifiedShow Answer

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a) 3
b) 2
c) 3
d) 3
...
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$75,000 + $40,000 - ...
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