Question 1

All of the following would be reported on the balance sheet as a current asset except

Accepted Answer

A)   factory overhead
B)   materials inventory
C)   finished goods inventory
D)   work in process inventoryE) B) and D)
F) A) and B)

Question 2

Prime costs are

Accepted Answer

A)   direct materials and factory overhead
B)   direct materials and direct labor
C)   direct labor and factory overhead
D)   period costs and factory overheadE) All of the above
F) None of the above

Question 3

Another term for factory overhead is

Accepted Answer

A)   surplus
B)   period cost
C)   supervisory cost
D)   factory burdenE) None of the above
F) C) and D)

Question 4

What is the purpose of the statement of cost of goods manufactured?

Accepted Answer

A)   to determine the ending materials inventory
B)   to determine the ending work in process inventory
C)   to determine the amounts transferred to finished goods
D)   all of theseE) C) and D)
F) A) and B)

Question 5

Given the following data:
Cost of materials used                       $45,000
Direct labor costs                               48,000
Factory overhead                                39,000
Work in process, beginning                 28,000
Work in process, ending                     18,000
Finished goods, beginning                   28,000
Finished goods, ending                        18,000
What is cost of goods sold?

Accepted Answer

A)   $152,000
B)   $142,000
C)   $10,000
D)   $128,000E) All of the above
F) A) and C)

Question 6

The plant manager's salary in a manufacturing business would be considered an indirect cost.

Accepted Answer

A) True 
 B)False

Question 7

At the beginning of the current year, the Grant Company's work in process inventory account had a balance of $30,000.  During the year, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred.  Factory overhead for the year amounted to $90,000. Cost of goods manufactured is $230,000.  The balance in work in process inventory on December 31 is

Accepted Answer

A)   $24,000
B)   $44,000
C)   $66,000
D)   $36,000E) None of the above
F) A) and D)

Question 8

Indirect costs can be specifically traced to a cost object.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Accepted Answer

A) True 
 B)False

Question 11

Sustainability information only benefits internal financial statement users in their decision making.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Managerial Accounting

Prime costs are

Correct Answer
verified

The plant manager's salary in a manufacturing business would be considered an indirect cost.

Correct Answer
verified

Correct Answer
verified

Given the following data: Cost of materials used $45,000 Direct labor costs 48,000 Factory overhead 39,000 Work in process, beginning 28,000 Work in process, ending 18,000 Finished goods, beginning 28,000 Finished goods, ending 18,000 What is cost of goods sold?

Correct Answer
verified

What is the purpose of the statement of cost of goods manufactured?

Correct Answer
verified

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Correct Answer
verified

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

Correct Answer
verified

Another term for factory overhead is

Correct Answer
verified

All of the following would be reported on the balance sheet as a current asset except

Correct Answer
verified

Sustainability information only benefits internal financial statement users in their decision making.

Correct Answer
verified

Indirect costs can be specifically traced to a cost object.

Correct Answer
verified

Exam 1: Introduction to Managerial Accounting

Prime costs are

Correct AnswerverifiedShow Answer

The plant manager's salary in a manufacturing business would be considered an indirect cost.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Given the following data: Cost of materials used $45,000 Direct labor costs 48,000 Factory overhead 39,000 Work in process, beginning 28,000 Work in process, ending 18,000 Finished goods, beginning 28,000 Finished goods, ending 18,000 What is cost of goods sold?

Correct AnswerverifiedShow Answer

What is the purpose of the statement of cost of goods manufactured?

Correct AnswerverifiedShow Answer

A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Another term for factory overhead is

Correct AnswerverifiedShow Answer

All of the following would be reported on the balance sheet as a current asset except

Correct AnswerverifiedShow Answer

Sustainability information only benefits internal financial statement users in their decision making.

Correct AnswerverifiedShow Answer

Indirect costs can be specifically traced to a cost object.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified