Question 1

Costs such as salary of supervisors and other support personnel,which are accounted for as overhead costs,are called

Accepted Answer

A)  period labor costs.
B)  sales assistance costs.
C)  indirect labor costs.
D)  prime labor costs.

Question 2

The management accountant must be knowledgeable about all relevant laws,regulations,and technical standards that pertain to his or her duties.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following equations is correct?

Accepted Answer

A)  Total Manufacturing Costs = Direct Materials + Direct Labor + Selling Costs
B)  Total Manufacturing Costs = Direct Materials + Direct Labor + Overhead
C)  Total Manufacturing Costs = Direct Labor + Overhead + Selling Costs + Administrative Costs
D)  Total Manufacturing Costs = Product Costs + Period Costs

Question 4

Indirect product costs incurred are charged directly to the Cost of Goods Sold account.

Accepted Answer

A) True 
 B)False

Question 5

Period costs are charged against the revenue of the current period.

Accepted Answer

A) True 
 B)False

Question 6

If a management accountant gives information about a future merger of his or her company to a relative,the accountant has acted ethically.

Accepted Answer

A) True 
 B)False

Question 7

The amount of cost of goods manufactured is transferred from the Work in Process Inventory account to the Finished Goods Inventory account.

Accepted Answer

A) True 
 B)False

Question 8

In a manufacturing company,the cost of direct materials,direct labor,and overhead will most likely become a part of the Cost of Goods Sold account balance.

Accepted Answer

A) True 
 B)False

Question 9

The two primary types of cost behavior are fixed and variable.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a difference between managerial and financial accounting?

Accepted Answer

A)  Managerial accounting reports non-monetary information whereas financial accounting reports both monetary and non-monetary information.
B)  Managerial accounting is used by government authorities whereas financial accounting is used by stockholders.
C)  Managerial accounting prepares reports monthly whereas financial accounting prepares reports annually.
D)  Managerial information is confidential whereas financial accounting information is publicly available.

Question 11

Non-value-adding costs increase the cost of a product.

Accepted Answer

A) True 
 B)False

Question 12

Primary users of managerial accounting include governmental agencies.

Accepted Answer

A) True 
 B)False

Question 13

Minor materials and other production supplies that cannot be conveniently traced to specific products are accounted for as indirect materials.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is included in prime costs?

Accepted Answer

A)  Overhead costs
B)  Indirect materials costs
C)  Selling and administrative costs
D)  Direct labor costs

Question 15

The costs of labor for maintenance and inspections are examples of direct labor.

Accepted Answer

A) True 
 B)False

Question 16

Fill in the missing data for Company B:

Accepted Answer

a.$12,000
b.$8,000
c...

Question 17

Costs can also be classified as value-adding or non-value-adding costs.

Accepted Answer

A) True 
 B)False

Question 18

Accounting rules applicable to management accounting are the same as those used for financial accounting.

Accepted Answer

A) True 
 B)False

Question 19

Fill in the missing data for Company C:

Accepted Answer

a.$5,000
b.$4,000
c....

Exam 15: Managerial Accounting and Cost Concepts

The management accountant must be knowledgeable about all relevant laws,regulations,and technical standards that pertain to his or her duties.

Correct Answer
verified

Minor materials and other production supplies that cannot be conveniently traced to specific products are accounted for as indirect materials.

Correct Answer
verified

If a management accountant gives information about a future merger of his or her company to a relative,the accountant has acted ethically.

Correct Answer
verified

Costs can also be classified as value-adding or non-value-adding costs.

Correct Answer
verified

The two primary types of cost behavior are fixed and variable.

Correct Answer
verified

The amount of cost of goods manufactured is transferred from the Work in Process Inventory account to the Finished Goods Inventory account.

Correct Answer
verified

The costs of labor for maintenance and inspections are examples of direct labor.

Correct Answer
verified

Indirect product costs incurred are charged directly to the Cost of Goods Sold account.

Correct Answer
verified

Period costs are charged against the revenue of the current period.

Correct Answer
verified

Which of the following is a difference between managerial and financial accounting?

Correct Answer
verified

In a manufacturing company,the cost of direct materials,direct labor,and overhead will most likely become a part of the Cost of Goods Sold account balance.

Correct Answer
verified

Non-value-adding costs increase the cost of a product.

Correct Answer
verified

Which of the following is included in prime costs?

Correct Answer
verified

Fill in the missing data for Company B:

Correct Answer
verified
a.$12,000
b.$8,000
c...
View Answer

Primary users of managerial accounting include governmental agencies.

Correct Answer
verified

Which of the following equations is correct?

Correct Answer
verified

Costs such as salary of supervisors and other support personnel,which are accounted for as overhead costs,are called

Correct Answer
verified

Fill in the missing data for Company C:

Correct Answer
verified
a.$5,000
b.$4,000
c....
View Answer

Accounting rules applicable to management accounting are the same as those used for financial accounting.

Correct Answer
verified

Exam 15: Managerial Accounting and Cost Concepts

The management accountant must be knowledgeable about all relevant laws,regulations,and technical standards that pertain to his or her duties.

Correct AnswerverifiedShow Answer

Minor materials and other production supplies that cannot be conveniently traced to specific products are accounted for as indirect materials.

Correct AnswerverifiedShow Answer

If a management accountant gives information about a future merger of his or her company to a relative,the accountant has acted ethically.

Correct AnswerverifiedShow Answer

Costs can also be classified as value-adding or non-value-adding costs.

Correct AnswerverifiedShow Answer

The two primary types of cost behavior are fixed and variable.

Correct AnswerverifiedShow Answer

The amount of cost of goods manufactured is transferred from the Work in Process Inventory account to the Finished Goods Inventory account.

Correct AnswerverifiedShow Answer

The costs of labor for maintenance and inspections are examples of direct labor.

Correct AnswerverifiedShow Answer

Indirect product costs incurred are charged directly to the Cost of Goods Sold account.

Correct AnswerverifiedShow Answer

Period costs are charged against the revenue of the current period.

Correct AnswerverifiedShow Answer

Which of the following is a difference between managerial and financial accounting?

Correct AnswerverifiedShow Answer

In a manufacturing company,the cost of direct materials,direct labor,and overhead will most likely become a part of the Cost of Goods Sold account balance.

Correct AnswerverifiedShow Answer

Non-value-adding costs increase the cost of a product.

Correct AnswerverifiedShow Answer

Which of the following is included in prime costs?

Correct AnswerverifiedShow Answer

Fill in the missing data for Company B:

Correct Answerverifieda.$12,000b.$8,000c...View AnswerShow Answer

Primary users of managerial accounting include governmental agencies.

Correct AnswerverifiedShow Answer

Which of the following equations is correct?

Correct AnswerverifiedShow Answer

Costs such as salary of supervisors and other support personnel,which are accounted for as overhead costs,are called

Correct AnswerverifiedShow Answer

Fill in the missing data for Company C:

Correct Answerverifieda.$5,000b.$4,000c....View AnswerShow Answer

Accounting rules applicable to management accounting are the same as those used for financial accounting.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
a.$12,000
b.$8,000
c...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a.$5,000
b.$4,000
c....
View Answer

Correct Answer
verified