Question 1

The Sharpe Company reports the following information for 2015:  Determine product costs for 2015.

Accepted Answer

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

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Goods that are partway through the manufacturing process, but not yet complete, are referred to as materials inventory.

Accepted Answer

A) True 
 B)False

Question 4

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 B)
F) B) and D)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory.
1. _____ Frosting
2. _____ Wages of the baker
3. _____ Sprinkles for the topping (considered an indirect material)
4. _____ Depreciation on oven

Accepted Answer

The answer of Identify the following costs as (a) prime...

Question 11

All of the following are ways that managers use managerial information except

Accepted Answer

A)   to evaluate the company's stock performance
B)   to evaluate the performance of a company's operations
C)   to support long-term planning decisions
D)   to determine the cost of manufacturing a productE) A) and B)
F) None of the above

Question 12

A company sells goods for $150,000 that cost $60,000 to manufacture. Which statement(s)  are true?

Accepted Answer

A)   The company will recognize sales on the balance sheet of $150,000.
B)   The company will recognize $90,000 gross profit on the balance sheet.
C)   The company will decrease finished goods by $60,000.
D)   All of these are true.E) A) and D)
F) None of the above

Question 13

Use the correct number to designate each item below:
1) direct materials
2) selling and administrative expense
3) factory overhead
4) direct labor

Accepted Answer

a) 3
b) 2
c) 3
d) 3
...

Question 14

In most business organizations, the chief accountant is called the treasurer.

Accepted Answer

A) True 
 B)False

Question 15

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) B) and C)

Question 16

Managerial accounting reports must be useful to the user of the information.

Accepted Answer

A) True 
 B)False

Question 17

Factory overhead includes:

Accepted Answer

A)   factory rent and direct labor
B)   direct materials and direct labor
C)   indirect materials and direct materials
D)   indirect labor and indirect materialsE) All of the above
F) A) and B)

Question 18

A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

All of the following employees hold line positions in Anthea Electric EXCEPT:

Accepted Answer

A)   vice president of production
B)   vice president of finance
C)   manager of the Valhalla Plant
D)   vice president of salesE) B) and D)
F) All of the above

Exam 15: Managerial Accounting Concepts and Principles

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Use the correct number to designate each item below: 1) direct materials 2) selling and administrative expense 3) factory overhead 4) direct labor

Correct Answerverifieda) 3b) 2c) 3d) 3...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

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

Correct AnswerverifiedShow Answer

All of the following employees hold line positions in Anthea Electric EXCEPT:

Correct AnswerverifiedShow Answer

Finished goods inventory is reported on the:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Goods that are partway through the manufacturing process, but not yet complete, are referred to as materials inventory.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

All of the following are ways that managers use managerial information except

Correct AnswerverifiedShow Answer

The Sharpe Company reports the following information for 2015: Determine product costs for 2015.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In most business organizations, the chief accountant is called the treasurer.

Correct AnswerverifiedShow Answer

Managerial accounting reports must be useful to the user of the information.

Correct AnswerverifiedShow Answer

A company sells goods for $150,000 that cost $60,000 to manufacture. Which statement(s) are true?

Correct AnswerverifiedShow Answer

A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities.

Correct AnswerverifiedShow Answer

Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory. 1. _____ Frosting 2. _____ Wages of the baker 3. _____ Sprinkles for the topping (considered an indirect material) 4. _____ Depreciation on oven

Correct AnswerverifiedShow Answer

Factory overhead includes:

Correct AnswerverifiedShow Answer

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a) 3
b) 2
c) 3
d) 3
...
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Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory. 1. ___ Frosting 2. _ Wages of the baker 3. _ Sprinkles for the topping (considered an indirect material) 4. ___ Depreciation on oven

Correct Answer
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Correct Answer
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