Question 1

Match the items below for a bakery to the type of cost (a-d).
-Depreciation expense-office
A)Direct materials
B)Direct labor
C)Factory overhead
D)Nonmanufacturing cost

Accepted Answer

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

Question 2

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 D)
F) B) and D)

Question 3

Verticals prepare their own income statements.

Accepted Answer

A) True 
 B)False

Question 4

A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is

Accepted Answer

A)  $750,000
B)  $240,000
C)  $600,000
D)  $270,000E) B) and D)
F) A) and D)

Question 5

In the hotel industry, the occupancy rate is a measure of

Accepted Answer

A)  risk
B)  solvency
C)  profitability
D)  utilizationE) C) and D)
F) B) and D)

Question 6

Match the items below to the type of cost (a or b).
-Factory utilities
A)Product cost
B)Period cost

Accepted Answer

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

Question 7

Managerial information is for external as well as internal stakeholders.

Accepted Answer

A) True 
 B)False

Question 8

Match the items below to the type of cost (a or b).
-Direct labor incurred
A)Product cost
B)Period cost

Accepted Answer

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

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

An example of a period cost is

Accepted Answer

A)  advertising expense
B)  indirect materials
C)  depreciation on factory equipment
D)  property taxes on plant facilitiesE) A) and B)
F) A) and C)

Question 11

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Depreciation expense-factory
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 12

Period costs include direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Question 13

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as

Accepted Answer

A)  factory overhead cost
B)  direct labor cost
C)  miscellaneous costs
D)  direct materials costE) A) and B)
F) B) and D)

Question 14

Which of the following is an example of a factory overhead cost?

Accepted Answer

A)  repair and maintenance cost on the administrative building
B)  factory heating and lighting cost
C)  insurance premiums on salespersons' automobiles
D)  president's salaryE) None of the above
F) A) and D)

Question 15

In smaller companies, the term controller may be used to refer to the chief financial officer.

Accepted Answer

A) True 
 B)False

Question 16

Prime costs consist of direct materials, indirect materials, and direct labor.

Accepted Answer

A) True 
 B)False

Question 17

The following information is taken from the financial records of Gunner Manufacturing:  What is the cost of goods manufactured?

Accepted Answer

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

Question 18

Which of the following terms is used to describe the process of developing the organization's objectives and translating those into courses of action?

Accepted Answer

A)  supervising
B)  planning
C)  improving
D)  decision makingE) B) and D)
F) B) and C)

Question 19

All of the following would be reported on the balance sheet as current assets except

Accepted Answer

A)  factory overhead
B)  materials inventory
C)  finished goods inventory
D)  work in process inventoryE) A) and D)
F) None of the above

Question 20

Match the items below to the type of cost (a-c).
-Administrative office salaries
A)Direct
B)Indirect
C)Neither direct nor indirect

Accepted Answer

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

Exam 15: Introduction to Managerial Accounting

Match the items below to the type of cost (a-c). -Administrative office salaries A)Direct B)Indirect C)Neither direct nor indirect

Correct AnswerverifiedShow Answer

Which of the following terms is used to describe the process of developing the organization's objectives and translating those into courses of action?

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Verticals prepare their own income statements.

Correct AnswerverifiedShow Answer

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

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Match the items below to the type of cost (a or b). -Direct labor incurred A)Product cost B)Period cost

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Managerial information is for external as well as internal stakeholders.

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Prime costs consist of direct materials, indirect materials, and direct labor.

Correct AnswerverifiedShow Answer

In smaller companies, the term controller may be used to refer to the chief financial officer.

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The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as

Correct AnswerverifiedShow Answer

An example of a period cost is

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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

A company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. The gross profit is

Correct AnswerverifiedShow Answer

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

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Which of the following is an example of a factory overhead cost?

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The following information is taken from the financial records of Gunner Manufacturing: What is the cost of goods manufactured?

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All of the following would be reported on the balance sheet as current assets except

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Match the items below for a bakery to the type of cost (a-d). -Depreciation expense-office A)Direct materials B)Direct labor C)Factory overhead D)Nonmanufacturing cost

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Period costs include direct materials and direct labor.

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In the hotel industry, the occupancy rate is a measure of

Correct AnswerverifiedShow Answer

Match the items below to the type of cost (a or b). -Factory utilities A)Product cost B)Period cost

Correct AnswerverifiedShow Answer

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