Question 1

Place each of the following costs of a Blu-ray disc manufacturer in the appropriate column.

Accepted Answer

The answer of Place each of the following costs of...

Question 2

Control is the process of setting goals and determining ways to achieve them.

Accepted Answer

A) True 
 B)False

Question 3

The Work in Process Inventory account is found only in the ledgers of manufacturing companies.

Accepted Answer

A) True 
 B)False

Question 4

The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the manufacturer includes cost of goods manufactured rather than cost of goods purchased.

Accepted Answer

A) True 
 B)False

Question 5

Total variable costs change in proportion to changes in the volume of activity.

Accepted Answer

A) True 
 B)False

Question 6

Use the cost information below for Sundar Company to determine the cost of goods manufactured during the current year:

Accepted Answer

A)  $98,600.
B)  $43,500.
C)  $98,000.
D)  $42,900.
E)  $79,000.F) B) and C)
G) A) and D)

Question 7

A National Quality Award that encourages an emphasis on quality was established by:

Accepted Answer

A)  The United Nations.
B)  The U.S.Chamber of Commerce.
C)  The Malcolm Baldrige Foundation.
D)  The U.S.Congress.
E)  The SEC.F) B) and E)
G) A) and B)

Question 8

Feedback provided by the control function allows managers to revise their plans.

Accepted Answer

A) True 
 B)False

Question 9

Raw materials that are tangible components of the finished product and can be separately and readily traced through the manufacturing process are called:

Accepted Answer

A)  Raw materials sold.
B)  Chargeable materials.
C)  Work in process.
D)  Indirect materials.
E)  Direct materials.F) C) and E)
G) B) and E)

Question 10

Costs that are capitalized as inventory when they are incurred are called:

Accepted Answer

A)  Period costs.
B)  Product costs.
C)  General costs.
D)  Administrative costs.
E)  Fixed costs.F) B) and E)
G) B) and C)

Question 11

A direct cost is a cost that is:

Accepted Answer

A)  Identifiable as controllable.
B)  Traceable to the company as a whole.
C)  Does not change with the volume of activity.
D)  Traceable to a single cost object.
E)  Traceable to multiple cost objects.F) D) and E)
G) B) and E)

Question 12

Use the following information to calculate the cost of goods sold for the period:

Accepted Answer

A)  $164,300.
B)  $126,800.
C)  $125,300.
D)  $146,300.
E)  $128,300.F) D) and E)
G) B) and D)

Question 13

Labor costs that are clearly associated with specific units of product because the labor is used to convert raw materials into finished products are called:

Accepted Answer

A)  Contracted labor.
B)  Direct labor.
C)  Indirect labor.
D)  Finished labor.
E)  All labor.F) C) and D)
G) A) and C)

Question 14

Total quality management (TQM)focuses on quality improvement to business activities.

Accepted Answer

A) True 
 B)False

Question 15

Use the following data to compute total factory overhead costs for the month:

Accepted Answer

A)  $141,100.
B)  $125,300.
C)  $45,200.
D)  $84,800.
E)  $58,300.F) A) and D)
G) A) and B)

Question 16

Under a just-in-time manufacturing system,large quantities of inventory are accumulated throughout the factory to be certain that components are available each time that they are needed.

Accepted Answer

A) True 
 B)False

Question 17

Classifying costs by behavior with changes in volume of activity involves:

Accepted Answer

A)  Identifying fixed costs and variable cost.
B)  Identifying cost of goods sold and operating costs.
C)  Identifying costs as financial or managerial.
D)  Identifying costs in a physical manner.
E)  Identifying both quantitative and qualitative cost factors.F) B) and D)
G) A) and E)

Question 18

Which of the following is not part of the materials activity in the flow of manufacturing activities?

Accepted Answer

A)  Beginning raw materials.
B)  Beginning work in process.
C)  Raw materials purchases.
D)  Raw materials available for use.
E)  Ending raw materials.F) A) and D)
G) B) and D)

Question 19

Managerial accounting is different from financial accounting in that:

Accepted Answer

A)  Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization.
B)  Managerial accounting never includes nonmonetary information.
C)  Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.
D)  Managerial accounting is used extensively by investors,whereas financial accounting is used only by creditors.
E)  Managerial accounting is mainly used to set stock prices.F) A) and E)
G) B) and E)

Question 20

What are the three types of inventories that are carried by manufacturers? Describe each type of inventory.

Accepted Answer

Manufacturers carry three types of inven...

Exam 14: Managerial Accounting Concepts and Principles

Total variable costs change in proportion to changes in the volume of activity.

Correct AnswerverifiedShow Answer

Managerial accounting is different from financial accounting in that:

Correct AnswerverifiedShow Answer

Labor costs that are clearly associated with specific units of product because the labor is used to convert raw materials into finished products are called:

Correct AnswerverifiedShow Answer

Use the following data to compute total factory overhead costs for the month:

Correct AnswerverifiedShow Answer

Use the following information to calculate the cost of goods sold for the period:

Correct AnswerverifiedShow Answer

The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the manufacturer includes cost of goods manufactured rather than cost of goods purchased.

Correct AnswerverifiedShow Answer

The Work in Process Inventory account is found only in the ledgers of manufacturing companies.

Correct AnswerverifiedShow Answer

Raw materials that are tangible components of the finished product and can be separately and readily traced through the manufacturing process are called:

Correct AnswerverifiedShow Answer

A direct cost is a cost that is:

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A National Quality Award that encourages an emphasis on quality was established by:

Correct AnswerverifiedShow Answer

Total quality management (TQM)focuses on quality improvement to business activities.

Correct AnswerverifiedShow Answer

Costs that are capitalized as inventory when they are incurred are called:

Correct AnswerverifiedShow Answer

Control is the process of setting goals and determining ways to achieve them.

Correct AnswerverifiedShow Answer

Which of the following is not part of the materials activity in the flow of manufacturing activities?

Correct AnswerverifiedShow Answer

What are the three types of inventories that are carried by manufacturers? Describe each type of inventory.

Correct AnswerverifiedManufacturers carry three types of inven...View AnswerShow Answer

Place each of the following costs of a Blu-ray disc manufacturer in the appropriate column.

Correct AnswerverifiedShow Answer

Classifying costs by behavior with changes in volume of activity involves:

Correct AnswerverifiedShow Answer

Use the cost information below for Sundar Company to determine the cost of goods manufactured during the current year:

Correct AnswerverifiedShow Answer

Under a just-in-time manufacturing system,large quantities of inventory are accumulated throughout the factory to be certain that components are available each time that they are needed.

Correct AnswerverifiedShow Answer

Feedback provided by the control function allows managers to revise their plans.

Correct AnswerverifiedShow Answer

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Manufacturers carry three types of inven...
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