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Test Bank For Managerial Accounting - 16th - 2023 All Chapters - 9780357715222
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,Test Bank For Managerial Accounting 16th EditionChapter 1. Introduction to Managerial Accounting.
Chapter 1. Introduction to Managerial Accounting.
1. A cake factory would classify which of the following as both a p
A cake factory would classify which of the following as both a prime cost and a
conversion cost?
a. frosting
*b. wages of the baker
c. sprinkles for the topping (considered an indirect material)
d. depreciation on oven
2. Accounting designed to meet the needs of decision-makers inside
Accounting designed to meet the needs of decision makers inside the business is
a. general accounting
b. financial accounting
*c. managerial accounting
d. external accounting
3. A company manufactured 50,000 units of a product at a cost of $4
A company manufactured 50,000 units of a product at a cost of $450,000. It sold
45,000 units at $15 each. The gross profit is
a. $750,000
b. $240,000
c. $600,000
*d. $270,000
4. A company sells goods for $150,000 that cost $54,000 to manufact
A company sells goods for $150,000 that cost $54,000 to manufacture. Which of the
following statements is true?
a. The company will recognize sales on the balance sheet of
$150,000.
b. The company will recognize $96,000 in 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.
5. A company used $35,000 of direct materials, incurred $73,000 in
A company used $35,000 of direct materials, incurred $73,000 in direct labor cost,
and had $114,000 in factory overhead costs during the period. If beginning and
ending work in process inventories were $28,000 and $32,000, respectively, the cost
of goods manufactured was
*a. $218,000
b. $226,000
c. $190,000
1
,Test Bank For Managerial Accounting 16th Edition
Chapter 1. Introduction to Managerial Accounting.
d. $222,000
6. A cost is a sacrifice made to obtain some benefit.
A cost is a sacrifice made to obtain some benefit.
*a. True
b. False
7. A cost object can be anything to which costs are assigned and wi
A cost object can be anything to which costs are assigned and will vary
depending upon the decision-making needs of management.
*a. True
b. False
8. A lawn mower manufacturer would classify grease for wheel axles
A lawn mower manufacturer would classify grease for wheel axles as which type of
cost?
a. direct materials
b. direct labor
*c. factory overhead
d. nonmanufacturing cost
9. A lawn mower manufacturer would classify wheels as which type of
A lawn mower manufacturer would classify wheels as which type of cost?
*a. direct materials
b. direct labor
c. factory overhead
d. nonmanufacturing cost
10. Allen Company used $71,000 of direct materials and incurred $37,
Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor
costs during the current year. Indirect labor amounted to $2,700, while indirect
materials used totaled $1,600. Other operating costs pertaining to the factory
included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation
of $7,900, and property taxes of $2,600. There was no beginning or ending finished
goods inventory, but work in process inventory began the year with a $5,500 balance
and ended the year with a $7,500 balance.
Prepare a statement of cost of goods manufactured.
Correct Answer(s):
2
, Test Bank For Managerial Accounting 16th Edition
Chapter 1. Introduction to Managerial Accounting.
11. Although finance and accounting professionals often work within
Although finance and accounting professionals often work within
verticals and other horizontals, they do not normally report directly
to the heads of those units or departments.
*a. True
b. False
12. A major focus of managerial accounting is the development of cos
A major focus of managerial accounting is the development of costing
information.
*a. True
b. False
13. An example of a period cost is
An example of a period cost is
*a. advertising expense
b. indirect materials
c. depreciation on factory equipment
d. property taxes on plant facilities
14. Another term for factory overhead is
Another term for factory overhead is
a. surplus
b. period cost
c. supervisory cost
*d. factory burden
15. A performance report that identifies the amount of employee down
A performance report that identifies the amount of employee downtime is
a financial accounting report.
a. True
*b. False
16. A plant managerâ™s salary is a(n)
A plant manager’s salary is a(n)
a. direct cost and an indirect cost
b. direct cost
*c. indirect cost
d. period cost
17. A product cost is
A product cost is
3
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