Question 1

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 inventory

Question 2

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 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 wages

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

Period costs consist of selling and admi...

Question 8

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)   $315,000

Question 9

Conversion costs consist of product costs and period costs.

Accepted Answer

A) True 
 B)False

Question 10

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 labor

Question 11

Indirect labor would be included in factory overhead.

Accepted Answer

A) True 
 B)False

Question 12

All of the following are examples of indirect labor except

Accepted Answer

A)   maintenance personnel
B)   janitorial personnel
C)   machine operators
D)   plant managers

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 sold

Question 17

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.

Question 18

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

Accepted Answer

Raw Materials Used =...

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 15: Introduction to Managerial Accounting

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

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

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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedRaw Materials Used =...View AnswerShow Answer

All of the following are examples of indirect labor except

Correct AnswerverifiedShow Answer

Which of the following is not a prime cost?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Conversion costs consist of product costs and period costs.

Correct AnswerverifiedShow Answer

Conversion costs are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Cost of goods manufactured is equal to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

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

Correct AnswerverifiedShow 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

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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 =...
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