Question 1

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

Question 2

Managers do not need to consider the social and environmental settings in which a business operates.

Accepted Answer

A) True 
 B)False

Question 3

A company sells goods for $150,000 that cost $54,000 to manufacture.Which statement is true?

Accepted Answer

A)   The company will recognize sales on the balance sheet of $150,000.
B)   The company will recognize $96,000 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) None of the above
F) B) and C)

Question 4

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) C) and D)

Question 5

Magnus Industries has the following data:
​
  Calculate the cost of raw materials used.

Accepted Answer

Raw Materials Used =...

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

An example of a sustainable business practice in transportation is crop rotation.

Accepted Answer

A) True 
 B)False

Question 8

Conversion costs consist of product costs and period costs.

Accepted Answer

A) True 
 B)False

Question 9

Differentiate between period and product costs,including examples of each type of cost.​

Accepted Answer

Period costs consist of selling and admi...

Question 10

Conversion cost is the combination of direct materials cost and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 11

Managerial accounting reports are designed to meet the specific needs of a company's management.

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

Factory overhead includes all manufacturing costs except direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Question 14

The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 15

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 16

All of the following are examples of indirect labor except

Accepted Answer

A)   maintenance personnel
B)   janitorial personnel
C)   machine operators
D)   plant managersE) A) and B)
F) None of the above

Question 17

In most business organizations,the chief management accountant is called the controller.

Accepted Answer

A) True 
 B)False

Question 18

Indirect labor would be included in factory overhead.

Accepted Answer

A) True 
 B)False

Question 19

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

Accepted Answer

A)   period costs and expensed when incurred
B)   product costs and expensed when the goods are sold
C)   product costs and expensed when incurred
D)   period costs and expensed when the goods are soldE) A) and D)
F) All of the above

Question 20

Which of the following is not a prime cost?

Accepted Answer

A)   plant janitor's wages
B)   direct labor wages
C)   machine operator wages
D)   assembly line wagesE) A) and D)
F) C) and D)

Exam 15: Introduction to Managerial Accounting

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

Correct AnswerverifiedShow Answer

Conversion costs consist of product costs and period costs.

Correct AnswerverifiedShow Answer

Managerial accounting reports are designed to meet the specific needs of a company's management.

Correct AnswerverifiedShow Answer

An example of a sustainable business practice in transportation is crop rotation.

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Factory overhead includes all manufacturing costs except direct materials and direct labor.

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Which of the following is not a prime cost?

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All of the following are examples of indirect labor except

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In most business organizations,the chief management accountant is called the controller.

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

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

Cost of goods manufactured is equal to

Correct AnswerverifiedShow Answer

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

Correct AnswerverifiedShow Answer

Conversion costs are

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Managers do not need to consider the social and environmental settings in which a business operates.

Correct AnswerverifiedShow Answer

The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.

Correct AnswerverifiedShow Answer

A company sells goods for $150,000 that cost $54,000 to manufacture.Which statement is true?

Correct AnswerverifiedShow Answer

Differentiate between period and product costs,including examples of each type of cost.​

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

Conversion cost is the combination of direct materials cost and factory overhead cost.

Correct AnswerverifiedShow Answer

Magnus Industries has the following data: ​ Calculate the cost of raw materials used.

Correct AnswerverifiedRaw Materials Used =...View AnswerShow Answer

Indirect labor would be included in factory overhead.

Correct AnswerverifiedShow Answer

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

Correct Answer
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Period costs consist of selling and admi...
View Answer

Correct Answer
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Magnus Industries has the following data: Calculate the cost of raw materials used.

Correct Answer
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Raw Materials Used =...
View Answer

Correct Answer
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