Question 1

Managerial information is for external as well as internal stakeholders.

Accepted Answer

A) True 
 B)False

Question 2

Costs which are reported on the income statement as part of cost of goods sold are referred to as:

Accepted Answer

A)   administrative expenses
B)   period costs
C)   cost of goods manufactured
D)   operating expensesE) A) and B)
F) None of the above

Question 3

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

Accepted Answer

A) True 
 B)False

Question 4

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 the answers are trueE) A) and C)
F) None of the above

Question 5

Operating expenses are product costs and are expensed when the product is sold.

Accepted Answer

A) True 
 B)False

Question 6

Factory overhead is an example of a product cost.

Accepted Answer

A) True 
 B)False

Question 7

Depreciation on factory plant and equipment is an example of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 8

The Sharpe Company reports the following information for 2012:
  Compute:
a) product costs
b) period costs

Accepted Answer

a) $7,300 + $4,700 + $5,900 + ...

Question 9

The cost of goods sold for Heedy manufacturing in 2011 was $233,000. The January 1, 2011, finished goods inventory balance was $31,600, and the December 31, 2011, finished goods inventory balance was $24,200. Cost of goods manufactured during the period was:

Accepted Answer

A)   $233,000
B)   $225,600
C)   $288,800
D)   $240,400E) A) and D)
F) A) and C)

Question 10

Which of the following would be least likely to be considered a managerial accounting report?

Accepted Answer

A)   a report to analyze potential efficiencies and savings for the purchase of new production equipment.
B)   a schedule of total manufacturing costs incurred
C)   a statement of cost of goods manufactured
D)   a statement of stockholders' equityE) None of the above
F) B) and C)

Question 11

Which of the following is most associated with financial accounting?

Accepted Answer

A)   Can have both objective and subjective information
B)   Can be prepared periodically, or as needed
C)   Prepared in accordance with GAAP
D)   Can be prepared for the entity or segmentE) B) and C)
F) B) and D)

Question 12

What is the amount of Raw Materials Used?

Accepted Answer

A)   $5,000
B)   $65,000
C)   $75,000
D)   $30,000E) A) and B)
F) A) and C)

Question 13

Factory overhead includes:

Accepted Answer

A)   factory rent and direct labor
B)   direct materials and direct labor
C)   indirect materials and direct materials
D)   indirect labor and indirect materialsE) All of the above
F) B) and C)

Question 14

Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during 2011. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100; maintenance of $4,500; supplies of $1,800; depreciation of $7,900; and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance.
Prepare a statement of cost of goods manufactured.

Accepted Answer

Allen Company
Statement of Cos...

Question 15

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Accepted Answer

A) True 
 B)False

Question 16

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 overheadE) B) and C)
F) A) and D)

Question 17

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 costE) A) and B)
F) None of the above

Question 18

The primary goal of managerial accounting is to provide information to:

Accepted Answer

A)   investors
B)   creditors
C)   management
D)   external auditorsE) B) and D)
F) B) and C)

Question 19

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) A) and B)
F) C) and D)

Question 20

Factory overhead includes all manufacturing costs except direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Exam 18: Managerial Accounting Concepts and Principles

What is the amount of Raw Materials Used?

Correct Answer
verified

The Sharpe Company reports the following information for 2012: Compute: a) product costs b) period costs

Correct Answer
verified
a) $7,300 + $4,700 + $5,900 + ...
View Answer

The cost of goods sold for Heedy manufacturing in 2011 was $233,000. The January 1, 2011, finished goods inventory balance was $31,600, and the December 31, 2011, finished goods inventory balance was $24,200. Cost of goods manufactured during the period was:

Correct Answer
verified

Correct Answer
verified
Allen Company
Statement of Cos...
View Answer

Which of the following would be least likely to be considered a managerial accounting report?

Correct Answer
verified

Costs which are reported on the income statement as part of cost of goods sold are referred to as:

Correct Answer
verified

What is the purpose of the Statement of Cost of Goods Manufactured?

Correct Answer
verified

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

Correct Answer
verified

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Correct Answer
verified

Factory overhead is an example of a product cost.

Correct Answer
verified

Operating expenses are product costs and are expensed when the product is sold.

Correct Answer
verified

Managerial information is for external as well as internal stakeholders.

Correct Answer
verified

Factory overhead includes all manufacturing costs except direct materials and direct labor.

Correct Answer
verified

Which of the following is most associated with financial accounting?

Correct Answer
verified

Finished goods inventory is reported on the:

Correct Answer
verified

Factory overhead includes:

Correct Answer
verified

Depreciation on factory plant and equipment is an example of factory overhead cost.

Correct Answer
verified

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

Correct Answer
verified

Prime costs are

Correct Answer
verified

The primary goal of managerial accounting is to provide information to:

Correct Answer
verified

Exam 18: Managerial Accounting Concepts and Principles

What is the amount of Raw Materials Used?

Correct AnswerverifiedShow Answer

The Sharpe Company reports the following information for 2012: Compute: a) product costs b) period costs

Correct Answerverifieda) $7,300 + $4,700 + $5,900 + ...View AnswerShow Answer

The cost of goods sold for Heedy manufacturing in 2011 was $233,000. The January 1, 2011, finished goods inventory balance was $31,600, and the December 31, 2011, finished goods inventory balance was $24,200. Cost of goods manufactured during the period was:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedAllen CompanyStatement of Cos...View AnswerShow Answer

Which of the following would be least likely to be considered a managerial accounting report?

Correct AnswerverifiedShow Answer

Costs which are reported on the income statement as part of cost of goods sold are referred to as:

Correct AnswerverifiedShow Answer

What is the purpose of the Statement of Cost of Goods Manufactured?

Correct AnswerverifiedShow Answer

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

Correct AnswerverifiedShow Answer

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Correct AnswerverifiedShow Answer

Factory overhead is an example of a product cost.

Correct AnswerverifiedShow Answer

Operating expenses are product costs and are expensed when the product is sold.

Correct AnswerverifiedShow Answer

Managerial information is for external as well as internal stakeholders.

Correct AnswerverifiedShow Answer

Factory overhead includes all manufacturing costs except direct materials and direct labor.

Correct AnswerverifiedShow Answer

Which of the following is most associated with financial accounting?

Correct AnswerverifiedShow Answer

Finished goods inventory is reported on the:

Correct AnswerverifiedShow Answer

Factory overhead includes:

Correct AnswerverifiedShow Answer

Depreciation on factory plant and equipment is an example of factory overhead cost.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Prime costs are

Correct AnswerverifiedShow Answer

The primary goal of managerial accounting is to provide information to:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
a) $7,300 + $4,700 + $5,900 + ...
View Answer

Correct Answer
verified

Correct Answer
verified
Allen Company
Statement of Cos...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified