Question 1

Match the items below for a bakery to the type of cost (a-d) . Answers may be used more than once.
-Factory rent

Accepted Answer

A)  Direct materials
B)  Direct labor
C)  Factory overhead
D)  Nonmanufacturing costChallengingE) B) and C)
F) C) and D)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Managerial accounting reports must be useful to the user of the information.

Accepted Answer

A) True 
 B)False

Question 4

Compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,900; and selling expenses, $45,290.

Accepted Answer

A)   $543,800
B)   $187,900
C)   $731,700
D)   $384,200E) A) and B)
F) B) and C)

Question 5

Differentiate between a line department and a staff department.

Accepted Answer

A line department is directly involved i...

Question 6

For each of the following costs, classify them as either:
-Administrative office salaries

Accepted Answer

A)  Direct costs
B)  Indirect costs
C)  Neither direct nor indirect costsD) B) and C)
E) A) and B)

Question 7

A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities.

Accepted Answer

A) True 
 B)False

Question 8

The following are costs incurred by a lawn mower manufacturer. Identify them as either:
-Wheels

Accepted Answer

A)  Direct materials
B)  Direct labor
C)  Factory overheadD) B) and C)
E) All of the above

Question 9

Sustainability practice focuses on short-term solutions to sustain company profits.

Accepted Answer

A) True 
 B)False

Question 10

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given.
-Manufacturing costs for wood and steel used in the bar stools

Accepted Answer

A)  Direct
B)  IndirectC) A) and B)
D) undefined

Question 11

Which of the following is not a prime cost?

Accepted Answer

A)   plant janitor's wages
B)   direct labor wages
C)   machine operator wages
D)   assembly line wagesE) C) and D)
F) All of the above

Question 12

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) None of the above
F) B) and C)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given.
-The production labor wages for the bar stool assemblers

Accepted Answer

A)  Direct
B)  IndirectC) A) and B)
D) undefined

Question 15

The following are some of the costs incurred by a cake factory. Identify them as either:
-Delivery expense

Accepted Answer

A)  Product costs
B)  Period costsC) A) and B)
D) undefined

Question 16

The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 17

Managerial accounting reports must be prepared according to generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 18

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 processE) C) and D)
F) None of the above

Question 19

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

Question 20

Differentiate between financial and managerial accounting, addressing such issues as users, nature of information, guidelines for preparation, timeliness, and focus of reporting.

Accepted Answer

The answer of Differentiate between financial and managerial accounting, addressing...

Exam 18: Introduction to Managerial Accounting

Differentiate between financial and managerial accounting, addressing such issues as users, nature of information, guidelines for preparation, timeliness, and focus of reporting.

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For each of the following costs, classify them as either: -Administrative office salaries

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Match the items below for a bakery to the type of cost (a-d) . Answers may be used more than once. -Factory rent

Correct AnswerverifiedShow Answer

A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities.

Correct AnswerverifiedShow Answer

Beginning work in process is equal to

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

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The following are some of the costs incurred by a cake factory. Identify them as either: -Delivery expense

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Sustainability practice focuses on short-term solutions to sustain company profits.

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Which of the following is not a prime cost?

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Compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,900; and selling expenses, $45,290.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given. -The production labor wages for the bar stool assemblers

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

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The following are costs incurred by a lawn mower manufacturer. Identify them as either: -Wheels

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Factory overhead includes

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Managerial accounting reports must be prepared according to generally accepted accounting principles.

Correct AnswerverifiedShow Answer

Managerial accounting reports must be useful to the user of the information.

Correct AnswerverifiedShow Answer

The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.

Correct AnswerverifiedShow Answer

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given. -Manufacturing costs for wood and steel used in the bar stools

Correct AnswerverifiedShow Answer

Differentiate between a line department and a staff department.

Correct AnswerverifiedA line department is directly involved i...View AnswerShow Answer

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A line department is directly involved i...
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