Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

If the cost of a direct material is a small portion of total production cost, it may be classified as part of

Accepted Answer

A)   direct labor cost
B)   selling and administrative costs
C)   miscellaneous costs
D)   factory overhead costE) A) and B)
F) None of the above

Question 3

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following would be least likely to be considered a managerial accounting report?

Accepted Answer

A)   a report to analyze potential efficiencies and savings for the purchase of new production equipment
B)   a schedule of total manufacturing costs incurred
C)   a statement of cost of goods manufactured
D)   a statement of stockholders' equityE) A) and D)
F) A) and C)

Question 5

Match each description to the appropriate term (a-d). 
a) Direct materials 
b) Selling and administrative expense 
c) Factory overhead 
d) Direct labor

Accepted Answer

(1) c
(2) b
(3) c ...

Question 6

Indirect labor and indirect materials would be part of factory overhead.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Indirect labor and indirect materials are classified as

Accepted Answer

A)   factory overhead and product costs
B)   factory overhead and period costs
C)   operating costs and period costs
D)   operating costs and product costsE) B) and C)
F) A) and D)

Question 11

Only the value of the inventory that is sold will appear on the income statement.

Accepted Answer

A) True 
 B)False

Question 12

The Darwin Company reports the following information: 
Period costs are

Accepted Answer

A)   $24,500
B)   $30,300
C)   $29,200
D)   $35,000E) A) and C)
F) B) and C)

Question 13

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 14

Managerial information is for external as well as internal stakeholders.

Accepted Answer

A) True 
 B)False

Question 15

Laramie Technologies had the following data: 
Cost of materials used       $50,000 
Direct labor costs                56,000 
Factory overhead                28,000 
Work in process, beg.         45,000 
Work in process, end.         32,000 
Calculate the cost of goods manufactured.

Accepted Answer

Cost of goods manufa...

Question 16

Which of the following statements is false?

Accepted Answer

A)   There is no overlap between financial and managerial accounting.
B)   Managerial accounting sometimes relies on past information.
C)   Managerial accounting does not need to conform to GAAP.
D)   Financial accounting must conform to GAAP.E) All of the above
F) A) and B)

Question 17

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

Accepted Answer

Period costs consist of selling and admi...

Question 18

Direct labor and direct materials are

Accepted Answer

A)   product costs and expensed when the goods are sold
B)   product costs and expensed when incurred
C)   period costs and expensed when incurred
D)   period costs and expensed when the goods are soldE) A) and B)
F) A) and C)

Question 19

Factory overhead cost is sometimes referred to as factory burden.

Accepted Answer

A) True 
 B)False

Question 20

Match between columns
                        Premises: Depreciation expense-factory
Frosting
Factory rent
Depreciation expense-office
Baker's wages
Sprinkles for decoration (indirect material)
Salesman commissions
Cupcake mix

Accepted Answer

The Answer of Direct materials and Nonmanufacturing cost and Direct is...

Exam 1: Introduction to Managerial Accounting

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory.

Correct Answer
verified

Managerial information is for external as well as internal stakeholders.

Correct Answer
verified

Which of the following would be least likely to be considered a managerial accounting report?

Correct Answer
verified

Match the items below for a bakery to the type of cost (a-d).

Direct labor and direct materials are

Correct Answer
verified

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

Correct Answer
verified
Period costs consist of selling and admi...
View Answer

Indirect labor and indirect materials would be part of factory overhead.

Correct Answer
verified

Laramie Technologies had the following data: Cost of materials used $50,000 Direct labor costs 56,000 Factory overhead 28,000 Work in process, beg. 45,000 Work in process, end. 32,000 Calculate the cost of goods manufactured.

Correct Answer
verified
Cost of goods manufa...
View Answer

If the cost of a direct material is a small portion of total production cost, it may be classified as part of

Correct Answer
verified

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Correct Answer
verified

Indirect labor and indirect materials are classified as

Correct Answer
verified

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

Correct Answer
verified

Only the value of the inventory that is sold will appear on the income statement.

Correct Answer
verified

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Correct Answer
verified

Which of the following statements is false?

Correct Answer
verified

Factory overhead cost is sometimes referred to as factory burden.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Match each description to the appropriate term (a-d). a) Direct materials b) Selling and administrative expense c) Factory overhead d) Direct labor

Correct Answer
verified
(1) c
(2) b
(3) c ...
View Answer

The Darwin Company reports the following information: Period costs are

Correct Answer
verified

Exam 1: Introduction to Managerial Accounting

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory.

Correct AnswerverifiedShow Answer

Managerial information is for external as well as internal stakeholders.

Correct AnswerverifiedShow Answer

Which of the following would be least likely to be considered a managerial accounting report?

Correct AnswerverifiedShow Answer

Match the items below for a bakery to the type of cost (a-d).

Direct labor and direct materials 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

Indirect labor and indirect materials would be part of factory overhead.

Correct AnswerverifiedShow Answer

Laramie Technologies had the following data: Cost of materials used $50,000 Direct labor costs 56,000 Factory overhead 28,000 Work in process, beg. 45,000 Work in process, end. 32,000 Calculate the cost of goods manufactured.

Correct AnswerverifiedCost of goods manufa...View AnswerShow Answer

If the cost of a direct material is a small portion of total production cost, it may be classified as part of

Correct AnswerverifiedShow Answer

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Correct AnswerverifiedShow Answer

Indirect labor and indirect materials are classified as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Only the value of the inventory that is sold will appear on the income statement.

Correct AnswerverifiedShow Answer

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

Factory overhead cost is sometimes referred to as factory burden.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Match each description to the appropriate term (a-d). a) Direct materials b) Selling and administrative expense c) Factory overhead d) Direct labor

Correct Answerverified(1) c (2) b (3) c ...View AnswerShow Answer

The Darwin Company reports the following information: Period costs are

Correct AnswerverifiedShow Answer

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Period costs consist of selling and admi...
View Answer

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Cost of goods manufa...
View Answer

Correct Answer
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(1) c
(2) b
(3) c ...
View Answer

Correct Answer
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