Question 1

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

Accepted Answer

A) True 
 B)False

Question 2

Costs on the income statement for both a merchandiser and a manufacturer would be

Accepted Answer

A)  operating expenses
B)  direct materials
C)  direct labor incurred
D)  cost of goods manufacturedE) A) and C)
F) None of the above A

Question 3

The Darwin Company reports the following information:  Product costs are

Accepted Answer

A)  $24,500
B)  $30,300
C)  $29,200
D)  $35,000E) A) and D)
F) All of the above

Question 4

Which of the following is not true in regards to direct materials for a bakery?

Accepted Answer

A)  Flour and sugar would probably be direct materials.
B)  Eggs would probably be a direct material
C)  Oil to lubricate factory machines would not be a direct material.
D)  Paper cupcake liners, that become part of the product, must be accounted for as direct materials.E) B) and C)
F) A) and D)

Question 5

Managerial accounting provides useful information to managers on product costs.

Accepted Answer

A) True 
 B)False

Question 6

A cost object indicates how costs are related or identified.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 C)
F) A) and D)

Question 9

Which of the following is part of factory overhead cost?

Accepted Answer

A)  sales commissions
B)  depreciation of factory equipment and machines
C)  depreciation of sales person's vehicle
D)  direct materials usedE) B) and C)
F) A) and C)

Question 10

Depreciation on factory plant and equipment is an example of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 11

Match the items below for a bakery to the type of cost a-d.
-Depreciation expense-factory

Accepted Answer

A)  Direct materials
B)  Direct labor
C)  Factory overhead
D)  Non-manufacturing costE) B) and C)
F) All of the above

Question 12

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

Accepted Answer

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

Question 13

Conversion costs are the combination of direct labor, direct material, and factory overhead costs.

Accepted Answer

A) True 
 B)False

Question 14

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

Question 15

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 16

The following are some of the costs incurred by Cupcake Company.Identify them as either:
-Cupcake mix

Accepted Answer

A)  Prime costs
B)  Conversion costs
C)  Both prime and conversion costs
D)  Neither prime or conversion costsE) B) and C)
F) All of the above

Question 17

Conversion costs are

Accepted Answer

A)  direct materials and direct labor
B)  direct materials and factory overhead
C)  factory overhead and direct labor
D)  direct materials and indirect laborE) C) and D)
F) A) and B) C

Question 18

Finished goods inventory is reported on the

Accepted Answer

A)  income statement as a period cost
B)  balance sheet as a long-term asset
C)  balance sheet as a current asset
D)  income statement as revenueE) None of the above
F) A) and B)

Question 19

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

Accepted Answer

A) True 
 B)False  False

Question 20

Match the items below for a bakery to the type of cost a-d.
-Baker's wages

Accepted Answer

A)  Direct materials
B)  Direct labor
C)  Factory overhead
D)  Non-manufacturing costE) B) and D)
F) B) and C)

Exam 1: Managerial Accounting Concepts and Principles

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

Correct AnswerverifiedShow Answer

Costs on the income statement for both a merchandiser and a manufacturer would be

Correct AnswerverifiedA

The Darwin Company reports the following information: Product costs are

Correct AnswerverifiedShow Answer

Which of the following is not true in regards to direct materials for a bakery?

Correct AnswerverifiedShow Answer

Managerial accounting provides useful information to managers on product costs.

Correct AnswerverifiedShow Answer

A cost object indicates how costs are related or identified.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Managerial accounting reports are

Correct AnswerverifiedShow Answer

Which of the following is part of factory overhead cost?

Correct AnswerverifiedShow Answer

Depreciation on factory plant and equipment is an example of factory overhead cost.

Correct AnswerverifiedShow Answer

Match the items below for a bakery to the type of cost a-d. -Depreciation expense-factory

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Conversion costs are the combination of direct labor, direct material, and factory overhead costs.

Correct AnswerverifiedShow Answer

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

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

The following are some of the costs incurred by Cupcake Company.Identify them as either: -Cupcake mix

Correct AnswerverifiedShow Answer

Conversion costs are

Correct AnswerverifiedC

Finished goods inventory is reported on the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFalse

Match the items below for a bakery to the type of cost a-d. -Baker's wages

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified