Question 1

Differentiate between verticals and horizontals.

Accepted Answer

Verticals are sometimes referred to as b...

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Match the items below to the type of cost (a-c).
-Labor for machine maintenance
A)Direct
B)Indirect
C)Neither direct nor indirect

Accepted Answer

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

Question 4

Period costs include

Accepted Answer

A)  current assets on the balance sheet
B)  current liabilities on the balance sheet
C)  operating costs that are shown on the income statement when products are sold
D)  operating costs that are shown on the income statement in the period in which they are incurredE) C) and D)
F) A) and D)

Question 5

Match the items below for a cake factory to the type of cost (a-c).
-Wages of the baker
A)Prime cost
B)Conversion cost
C)Both prime cost and conversion cost

Accepted Answer

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

Question 6

The income statement for both a merchandiser and a manufacturer would include

Accepted Answer

A)  operating expenses
B)  direct materials
C)  direct labor incurred
D)  cost of goods manufacturedE) B) and C)
F) All of the above

Question 7

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

Question 8

Period costs can be found on both the balance sheet and the income statement.

Accepted Answer

A) True 
 B)False

Question 9

The primary goal of managerial accounting is to provide information to

Accepted Answer

A)  investors
B)  creditors
C)  management
D)  external auditorsE) None of the above
F) C) and D)

Question 10

Match the items below to the appropriate term (a-d).
-Indirect materials used
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 11

A company sells goods for $150,000 that cost $54,000 to manufacture. Which of the following statements is true?

Accepted Answer

A)  The company will recognize sales on the balance sheet of $150,000.
B)  The company will recognize $96,000 in gross profit on the balance sheet.
C)  The company will decrease finished goods by $54,000.
D)  The company will increase finished goods by $54,000.E) A) and D)
F) All of the above

Question 12

For a construction contractor, the wages of carpenters would be classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 13

A cost is a sacrifice made to obtain some benefit.

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) C) and D)
F) None of the above

Question 15

Managers use managerial information to evaluate performance of a company's operation.

Accepted Answer

A) True 
 B)False

Question 16

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
-Delivery costs to take the bicycles to stores

Accepted Answer

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

Question 17

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

Accepted Answer

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

Question 18

Match the items below for a bakery to the type of cost (a-d).
-Frosting
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 19

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

Question 20

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) All of the above

Exam 15: Introduction to Managerial Accounting

Differentiate between verticals and horizontals.

Correct AnswerverifiedVerticals are sometimes referred to as b...View AnswerShow Answer

Period costs can be found on both the balance sheet and the income statement.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

For a construction contractor, the wages of carpenters would be classified as factory overhead cost.

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 -Delivery costs to take the bicycles to stores

Correct AnswerverifiedShow Answer

Period costs include

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A cost is a sacrifice made to obtain some benefit.

Correct AnswerverifiedShow Answer

Which of the following is part of factory overhead cost?

Correct AnswerverifiedShow Answer

Finished goods inventory is reported on the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Managers use managerial information to evaluate performance of a company's operation.

Correct AnswerverifiedShow Answer

Match the items below to the type of cost (a-c). -Labor for machine maintenance A)Direct B)Indirect C)Neither direct nor indirect

Correct AnswerverifiedShow Answer

The income statement for both a merchandiser and a manufacturer would include

Correct AnswerverifiedShow Answer

Goods that are partially completed by a manufacturer are

Correct AnswerverifiedShow Answer

The primary goal of managerial accounting is to provide information to

Correct AnswerverifiedShow Answer

A company sells goods for $150,000 that cost $54,000 to manufacture. Which of the following statements is true?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Match the items below for a cake factory to the type of cost (a-c). -Wages of the baker A)Prime cost B)Conversion cost C)Both prime cost and conversion cost

Correct AnswerverifiedShow Answer

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