Question 1

Prime costs are the combination of direct labor costs and factory overhead costs.

Accepted Answer

A) True 
 B)False

Question 2

Match each description below to the appropriate phase of the manufacturing process (a-e).
-Managers must decide how to respond to unfavorable performances
A)Planning
B)Directing
C)Controlling
D)Improving
E)Decision making

Accepted Answer

The answer of Match each description below to the appropriate...

Question 3

Labor costs that are directly traceable to the product are part of factory overhead.

Accepted Answer

A) True 
 B)False

Question 4

If the cost of a direct material is a small portion of total production cost, it may be classified as part of

Accepted Answer

A)  direct labor cost
B)  selling and administrative costs
C)  miscellaneous costs
D)  factory overhead costE) All of the above
F) A) and B)

Question 5

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

Accepted Answer

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

Question 6

Match the items below to the appropriate term (a-d).
-Utilities incurred in the office
A)Direct materials
B)Selling and administrative expense
C)Factory overhead
D)Direct labor

Accepted Answer

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

Question 7

Which of the following is most associated with financial accounting reports?

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) A) and D)

Question 8

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

Question 9

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) All of the above
F) A) and D)

Question 10

Match the items below for a cake factory to the type of cost (a or b).
-Transportation out
A)Product cost
B)Period cost

Accepted Answer

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

Question 11

Bartow Company manufactures bicycles. For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.a.Product
b.Period
-Tires for the bicycles

Accepted Answer

The answer of Bartow Company manufactures bicycles. For each of...

Question 12

Match the items below to the type of cost (a-c).
-Product assembly labor incurred
A)Direct
B)Indirect
C)Neither direct nor indirect

Accepted Answer

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

Question 13

Match the items below to the type of cost (a or b).
-Depreciation on factory machinery
A)Product cost
B)Period cost

Accepted Answer

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

Question 14

Which of the following costs are conversion costs?

Accepted Answer

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

Question 15

Match each description below to the appropriate phase of the manufacturing process (a-e).
-Used by management to develop the organization's objectives and goals
A)Planning
B)Directing
C)Controlling
D)Improving
E)Decision making

Accepted Answer

The answer of Match each description below to the appropriate...

Question 16

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

Accepted Answer

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

Question 17

Differentiate between period and product costs and include examples of each type of cost.

Accepted Answer

Period costs consist of selling and admi...

Question 18

Bartow Company manufactures bicycles. For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.a.Product
b.Period
-Accountant salaries

Accepted Answer

The answer of Bartow Company manufactures bicycles. For each of...

Question 19

Jensen Company reports the following: 
-Jensen Company's product costs are

Accepted Answer

A)  $995,000
B)  $920,000
C)  $825,000
D)  $770,000E) C) and D)
F) A) and D)

Question 20

Differentiate between:
a. direct materials versus indirect materials
b. direct labor versus indirect labor

Accepted Answer

a. Direct materials must become a physic...

Exam 15: Introduction to Managerial Accounting

Differentiate between period and product costs and include examples of each type of cost.

Correct AnswerverifiedPeriod costs consist of selling and admi...View AnswerShow Answer

Match the items below to the type of cost (a-c). -Product assembly labor incurred A)Direct B)Indirect C)Neither direct nor indirect

Correct AnswerverifiedShow Answer

Bartow Company manufactures bicycles. For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.a.Product b.Period -Tires for the bicycles

Correct AnswerverifiedShow Answer

Match the items below to the type of cost (a or b). -Depreciation on factory machinery A)Product cost B)Period cost

Correct AnswerverifiedShow Answer

Which of the following costs are conversion costs?

Correct AnswerverifiedShow Answer

Differentiate between: a. direct materials versus indirect materials b. direct labor versus indirect labor

Correct Answerverifieda. Direct materials must become a physic...View AnswerShow Answer

Bartow Company manufactures bicycles. For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.a.Product b.Period -Accountant salaries

Correct AnswerverifiedShow Answer

Match each description below to the appropriate phase of the manufacturing process (a-e). -Used by management to develop the organization's objectives and goals A)Planning B)Directing C)Controlling D)Improving E)Decision making

Correct AnswerverifiedShow Answer

Prime costs are the combination of direct labor costs and factory overhead costs.

Correct AnswerverifiedShow Answer

Labor costs that are directly traceable to the product are part of factory overhead.

Correct AnswerverifiedShow Answer

Jensen Company reports the following: -Jensen Company's product costs are

Correct AnswerverifiedShow Answer

Match the items below for a cake factory to the type of cost (a or b). -Transportation out A)Product cost B)Period cost

Correct AnswerverifiedShow Answer

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

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Match each description below to the appropriate phase of the manufacturing process (a-e). -Managers must decide how to respond to unfavorable performances A)Planning B)Directing C)Controlling D)Improving E)Decision making

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is most associated with financial accounting reports?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the cost of a direct material is a small portion of total production cost, it may be classified as part of

Correct AnswerverifiedShow Answer

Match the items below to the appropriate term (a-d). -Utilities incurred in the office A)Direct materials B)Selling and administrative expense C)Factory overhead D)Direct labor

Correct AnswerverifiedShow Answer

Prime costs are

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a. Direct materials must become a physic...
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