Question 1

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Salesperson commissions
A)Prime costs
B)Conversion costs
C)Both prime and conversion costs
D)Neither prime nor conversion costs

Accepted Answer

The answer of The following are some of the costs...

Question 2

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

Accepted Answer

A)  investors
B)  managers
C)  shareholders
D)  customersE) B) and C)
F) C) and D)

Question 3

Match the items below to the type of cost (a or b).
-Salary of plant manager
A)Product cost
B)Period cost

Accepted Answer

The answer of Match the items below to the type...

Question 4

Match the items below for a cake factory to the type of cost (a or b).
-Baker's wages
A)Product cost
B)Period cost

Accepted Answer

The answer of Match the items below for a cake...

Question 5

Match the items below to the type of cost (a-c).
-Utilities on factory building
A)Direct
B)Indirect
C)Neither direct nor indirect

Accepted Answer

The answer of Match the items below to the type...

Question 6

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Depreciation expense-office
A)Prime costs
B)Conversion costs
C)Both prime and conversion costs
D)Neither prime nor conversion costs

Accepted Answer

The answer of The following are some of the costs...

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

Goods that are partway through the manufacturing process, but not yet complete, are referred to as materials inventory.

Accepted Answer

A) True 
 B)False

Question 10

A performance report that identifies the amount of employee downtime is a financial accounting report.

Accepted Answer

A) True 
 B)False

Question 11

A product cost is

Accepted Answer

A)  expensed in the period in which the product is manufactured
B)  shown with current liabilities on the balance sheet
C)  shown with operating expenses on the income statement
D)  expensed in the period the product is soldE) A) and B)
F) A) and C)

Question 12

Horizontals are departments within a company that are responsible for developing products.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Sienna Company has the following information for January:  Determine the cost of goods manufactured.

Accepted Answer

The answer of Sienna Company has the following information for...

Question 15

The costs of materials and labor that do not enter directly into the finished product are classified as factory overhead.

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 makingE) All of the above
F) C) and D)

Question 17

Cost of goods manufactured is equal to

Accepted Answer

A)  total manufacturing costs plus ending materials inventory less beginning materials inventory
B)  cost of goods sold plus beginning work in process inventory less ending work in process inventory
C)  total manufacturing costs plus ending work in process inventory less beginning work in process inventory
D)  total manufacturing costs plus beginning work in process inventory less ending work in process inventoryE) A) and B)
F) A) and C)

Question 18

Which of the following accounts will be found on the income statement?

Accepted Answer

A)  Inventory
B)  Work in Process
C)  Finished Goods
D)  Cost of Goods SoldE) All of the above
F) A) and B)

Question 19

Direct costs can be specifically traced to a cost object.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following must be true in order for materials to be classified as direct materials?

Accepted Answer

A)  They must be classified as both prime costs and conversion costs.
B)  They must be introduced into the process in both work in process inventories and finished goods inventories.
C)  They must be an integral part of the finished product, but can be an insignificant portion of the total product cost.
D)  They must be an integral part of the finished product and be a significant portion of the total product cost.E) A) and B)
F) B) and D)

Exam 15: Introduction to Managerial Accounting

A performance report that identifies the amount of employee downtime is a financial accounting report.

Correct AnswerverifiedShow Answer

Sienna Company has the following information for January: Determine the cost of goods manufactured.

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Match the items below for a cake factory to the type of cost (a or b). -Baker's wages A)Product cost B)Period cost

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The costs of materials and labor that do not enter directly into the finished product are classified as factory overhead.

Correct AnswerverifiedShow Answer

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Depreciation expense-office A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs

Correct AnswerverifiedShow Answer

A product cost is

Correct AnswerverifiedShow Answer

Goods that are partway through the manufacturing process, but not yet complete, are referred to as materials inventory.

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Horizontals are departments within a company that are responsible for developing products.

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Which of the following must be true in order for materials to be classified as direct materials?

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

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Which of the following accounts will be found on the income statement?

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Salesperson commissions A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs

Correct AnswerverifiedShow Answer

Cost of goods manufactured is equal to

Correct AnswerverifiedShow Answer

Direct costs can be specifically traced to a cost object.

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Match the items below to the type of cost (a or b). -Salary of plant manager A)Product cost B)Period cost

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Match the items below to the type of cost (a-c). -Utilities on factory building A)Direct B)Indirect C)Neither direct nor indirect

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