Question 1

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 2

Period (nonmanufacturing) costs are classified into two categories: selling and administrative.

Accepted Answer

A) True 
 B)False

Question 3

On the income statement of a manufacturing company, what replaces purchases in the cost of goods sold section of a retail company?

Accepted Answer

A)   finished goods
B)   cost of merchandise available
C)   cost of goods manufactured
D)   work in processE) A) and C)
F) B) and C)

Question 4

Managerial accounting provides useful information to managers on product costs.

Accepted Answer

A) True 
 B)False

Question 5

Issues such as population growth and climate change all have a direct impact on a company's potential for success.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a characteristic of useful managerial accounting reports?

Accepted Answer

A)   accurate
B)   GAAP-adhering
C)   historical and estimated data
D)   prepared as neededE) B) and C)
F) C) and D)

Question 7

Sustainability practices acknowledge that a company's long-term success requires the continued availability of natural resources and a productive social environment.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Zoe Corporation has the following information for the month of March:  
Prepare: 
(a) a schedule of cost of goods manufactured 
(b) an income statement for the month ended March 31
(c) the inventory section of the balance sheet

Accepted Answer

The answer of Zoe Corporation has the following information for...

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

Cost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000. Work in process inventory during the year decreased by 60%.  Total manufacturing costs incurred are

Accepted Answer

A)   $190,000
B)   $165,000
C)   $290,000
D)   $315,000E) All of the above
F) A) and B)

Question 15

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...

Question 16

Managerial accounting reports are

Accepted Answer

A)   prepared according to GAAP
B)   prepared according to management needs
C)   prepared periodically only
D)   related to the entire business entity onlyE) B) and D)
F) A) and D)

Question 17

Managerial accountants could prepare all of the following reports except

Accepted Answer

A)   a performance report identifying amounts of scrap
B)   a control report comparing direct material usage over time
C)   a sales report targeting monthly sales and potential bonuses
D)   an annual report for external regulators such as the SECE) B) and C)
F) All of the above

Question 18

What term refers to the cost of changing direct materials into a finished manufactured product?

Accepted Answer

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

Question 19

The vice president of human resources and the controller hold line positions in most large organizations.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Managerial Accounting

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

Correct AnswerverifiedShow Answer

Sustainability practices acknowledge that a company's long-term success requires the continued availability of natural resources and a productive social environment.

Correct AnswerverifiedShow Answer

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.

Correct AnswerverifiedShow Answer

Zoe Corporation has the following information for the month of March: Prepare: (a) a schedule of cost of goods manufactured (b) an income statement for the month ended March 31 (c) the inventory section of the balance sheet

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

Managerial accountants could prepare all of the following reports except

Correct AnswerverifiedShow Answer

Cost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000. Work in process inventory during the year decreased by 60%. Total manufacturing costs incurred are

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

Cost of goods manufactured is equal to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What term refers to the cost of changing direct materials into a finished manufactured product?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Issues such as population growth and climate change all have a direct impact on a company's potential for success.

Correct AnswerverifiedShow Answer

Managerial accounting reports are

Correct AnswerverifiedShow Answer

On the income statement of a manufacturing company, what replaces purchases in the cost of goods sold section of a retail company?

Correct AnswerverifiedShow Answer

Managerial accounting provides useful information to managers on product costs.

Correct AnswerverifiedShow Answer

Period (nonmanufacturing) costs are classified into two categories: selling and administrative.

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of useful managerial accounting reports?

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The vice president of human resources and the controller hold line positions in most large organizations.

Correct AnswerverifiedShow Answer

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