Question 1

Classify the following costs as direct, indirect, or neither:

Accepted Answer

a indirect
b indirect
c indire...

Question 2

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factory overhead costs during the period.If beginning and ending work in process inventories were $28,000 and $32,000, respectively, the cost of goods manufactured was

Accepted Answer

A)  $218,000
B)  $226,000
C)  $190,000
D)  $222,000E) B) and D)
F) A) and B)

Question 3

Indirect costs can be specifically traced to a cost object.

Accepted Answer

A) True 
 B)False

Question 4

Identify the following costs as a direct materials, b direct labor, or c factory overhead for a lawn mower manufacturer.
1.Wheels
2.Depreciation on worker's tools
3.Wages of assemblers
4.Grease for wheel axles

Accepted Answer

1.Direct material
2....

Question 5

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) All of the above
F) B) and C)

Question 6

Materials must have which two qualities in order 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) A) and C)

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is the principle reason for preparing managerial accounting reports?

Accepted Answer

A)  usefulness to management
B)  cost of preparation
C)  clarity
D)  GAAPE) A) and D)
F) All of the above

Question 9

What term 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) A) and B)
F) A) and C)

Question 10

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

Question 11

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Accepted Answer

A) True 
 B)False

Question 12

A diagram of the operating structure of an organization is called an organization chart.

Accepted Answer

A) True 
 B)False

Question 13

Factory overhead cost is sometimes referred to as factory burden.

Accepted Answer

A) True 
 B)False

Question 14

Goods that are partially completed by a manufacturer are

Accepted Answer

A)  merchandise inventory
B)  work in process inventory
C)  finished goods inventory
D)  materials inventoryE) All of the above
F) None of the above

Question 15

The cost of a manufactured product generally consists of which of the following costs?

Accepted Answer

A)  direct materials cost and factory overhead cost only
B)  direct labor cost and factory overhead cost only
C)  direct labor cost, direct materials cost, and factory overhead cost
D)  direct materials cost and direct labor cost onlyE) B) and C)
F) A) and B)

Question 16

For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given.
-Delivery costs to take the bicycles to stores

Accepted Answer

A)  Product
B)  PeriodC) A) and B)
D) undefined

Question 17

Differentiate between a line department and a staff department.​

Accepted Answer

The answer of Differentiate between a line department and a...

Question 18

The plant manager's salary in a manufacturing business would be considered an indirect cost.

Accepted Answer

A) True 
 B)False

Question 19

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Accepted Answer

A) True 
 B)False

Question 20

Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the current year.Indirect labor amounted to $2,700 while indirect materials used totaled $1,600.Other operating costs pertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of $7,900, and property taxes of $2,600.There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance.
Prepare a statement of cost of goods manufactured.

Accepted Answer

The answer of Allen Company used $71,000 of direct materials...

Exam 1: Managerial Accounting Concepts and Principles

Correct Answer
verified

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Correct Answer
verified

Goods that are partially completed by a manufacturer are

Correct Answer
verified

The cost of a manufactured product generally consists of which of the following costs?

Correct Answer
verified

Factory overhead cost is sometimes referred to as factory burden.

Correct Answer
verified

The plant manager's salary in a manufacturing business would be considered an indirect cost.

Correct Answer
verified

Cost of goods manufactured is equal to

Correct Answer
verified

For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given. -Delivery costs to take the bicycles to stores

Correct Answer
verified

Differentiate between a line department and a staff department.

Correct Answer
verified

Materials must have which two qualities in order to be classified as direct materials?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

What term is used to describe the process of developing the organization's objectives and translating those into courses of action?

Correct Answer
verified

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factory overhead costs during the period.If beginning and ending work in process inventories were $28,000 and $32,000, respectively, the cost of goods manufactured was

Correct Answer
verified

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Correct Answer
verified

Indirect costs can be specifically traced to a cost object.

Correct Answer
verified

Which of the following is the principle reason for preparing managerial accounting reports?

Correct Answer
verified

Identify the following costs as a direct materials, b direct labor, or c factory overhead for a lawn mower manufacturer. 1.Wheels 2.Depreciation on worker's tools 3.Wages of assemblers 4.Grease for wheel axles

Correct Answer
verified
1.Direct material
2....
View Answer

Classify the following costs as direct, indirect, or neither:

Correct Answer
verified
a indirect
b indirect
c indire...
View Answer

A diagram of the operating structure of an organization is called an organization chart.

Correct Answer
verified

Exam 1: Managerial Accounting Concepts and Principles

Correct AnswerverifiedShow Answer

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Correct AnswerverifiedShow Answer

Goods that are partially completed by a manufacturer are

Correct AnswerverifiedShow Answer

The cost of a manufactured product generally consists of which of the following costs?

Correct AnswerverifiedShow Answer

Factory overhead cost is sometimes referred to as factory burden.

Correct AnswerverifiedShow Answer

The plant manager's salary in a manufacturing business would be considered an indirect cost.

Correct AnswerverifiedShow Answer

Cost of goods manufactured is equal to

Correct AnswerverifiedShow Answer

For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given. -Delivery costs to take the bicycles to stores

Correct AnswerverifiedShow Answer

Differentiate between a line department and a staff department.​

Correct AnswerverifiedShow Answer

Materials must have which two qualities in order to be classified as direct materials?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What term is used to describe the process of developing the organization's objectives and translating those into courses of action?

Correct AnswerverifiedShow Answer

A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factory overhead costs during the period.If beginning and ending work in process inventories were $28,000 and $32,000, respectively, the cost of goods manufactured was

Correct AnswerverifiedShow Answer

Planning is the process of developing the company's objectives or goals and translating these objectives into courses of action.

Correct AnswerverifiedShow Answer

Indirect costs can be specifically traced to a cost object.

Correct AnswerverifiedShow Answer

Which of the following is the principle reason for preparing managerial accounting reports?

Correct AnswerverifiedShow Answer

Identify the following costs as a direct materials, b direct labor, or c factory overhead for a lawn mower manufacturer. 1.Wheels 2.Depreciation on worker's tools 3.Wages of assemblers 4.Grease for wheel axles

Correct Answerverified1.Direct material2....View AnswerShow Answer

Classify the following costs as direct, indirect, or neither:

Correct Answerverifieda indirectb indirectc indire...View AnswerShow Answer

A diagram of the operating structure of an organization is called an organization chart.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Differentiate between a line department and a staff department.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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1.Direct material
2....
View Answer

Correct Answer
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a indirect
b indirect
c indire...
View Answer

Correct Answer
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