Question 1

Costs on the income statement for both a merchandiser and a manufacturer would be

Accepted Answer

A)   operating expenses
B)   direct materials
C)   direct labor incurred
D)   cost of goods manufactured

Question 2

Which of the following are basic phases of the management process?

Accepted Answer

A)   supervising and directing
B)   decision making and supervising
C)   organizing and directing
D)   planning and controlling

Question 3

Which of the following manufacturing costs is an indirect cost of producing a product?

Accepted Answer

A)   oil lubricants used for factory machinery
B)   commissions for sales personnel
C)   hourly wages of an assembly worker
D)   memory chips for a microcomputer manufacturer

Question 4

Sienna Company has the following information for January:  
Calculate the cost of goods manufactured.

Accepted Answer

Beginning ...

Question 5

Classify the following costs as direct, indirect, or neither:

Accepted Answer

a) Indirect
b) Indirect
c) I...

Question 6

Indirect labor would be included in factory overhead.

Accepted Answer

A) True 
 B)False

Question 7

Factory overhead includes

Accepted Answer

A)   factory rent and direct labor
B)   direct materials and direct labor
C)   indirect materials and direct materials
D)   indirect labor and indirect materials

Question 8

Identify the following costs as (a) prime cost, (b) conversion cost, or (c) both for a cake factory. 
1. Frosting 
2. Wages of the baker 
3. Sprinkles for the topping (considered an indirect material) 
4. Depreciation on oven

Accepted Answer

1. a
2. c...

Question 9

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)   chief accounting officer
B)   controller
C)   chairman of the board
D)   chief executive officer

Question 11

Jensen Company reports the following:  Jensen Company's period costs are

Accepted Answer

A)   $345,000
B)   $250,000
C)   $400,000
D)   $175,000

Question 12

What term is used to describe the process of developing the organization's objectives and translating those into courses of action?

Accepted Answer

A)   supervising
B)   planning
C)   improving
D)   decision making

Question 13

Labor costs that are directly traceable to the product are part of factory overhead.

Accepted Answer

A) True 
 B)False

Question 14

Beginning work in process is equal to

Accepted Answer

A)   cost of goods manufactured plus ending work in process minus manufacturing costs incurred during the current period
B)   cost of goods manufactured minus ending work in process plus manufacturing costs incurred during the current period
C)   ending work in process plus manufacturing costs incurred during the current period
D)   manufacturing costs incurred during the current period minus ending work in process

Question 15

A cost object indicates how costs are related or identified.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following are reported on the income statement as part of cost of goods?

Accepted Answer

A)   administrative expenses
B)   period costs
C)   cost of goods manufactured
D)   operating expenses

Question 17

A cost can be a payment of cash for the purpose of generating revenues.

Accepted Answer

A) True 
 B)False

Question 18

Jensen Company reports the following: 
Jensen Company's product costs are

Accepted Answer

A)   $995,000
B)   $920,000
C)   $825,000
D)   $770,000

Question 19

An example of a sustainable business practice in energy is the use of wind turbines.

Accepted Answer

A) True 
 B)False

Question 20

Insurance expense incurred on a factory building would be treated as a

Accepted Answer

A)   direct cost
B)   period cost
C)   product cost
D)   selling cost

Exam 1: Introduction to Managerial Accounting

What term is used to describe the process of developing the organization's objectives and translating those into courses of action?

Correct AnswerverifiedShow Answer

Which of the following are reported on the income statement as part of cost of goods?

Correct AnswerverifiedShow Answer

Which of the following manufacturing costs is an indirect cost of producing a product?

Correct AnswerverifiedShow Answer

Costs on the income statement for both a merchandiser and a manufacturer would be

Correct AnswerverifiedShow Answer

Jensen Company reports the following: Jensen Company's product costs are

Correct AnswerverifiedShow Answer

Which of the following are basic phases of the management process?

Correct AnswerverifiedShow Answer

Jensen Company reports the following: Jensen Company's period costs are

Correct AnswerverifiedShow Answer

Identify the following costs as (a) prime cost, (b) conversion cost, or (c) both for a cake factory. 1. Frosting 2. Wages of the baker 3. Sprinkles for the topping (considered an indirect material) 4. Depreciation on oven

Correct Answerverified1. a 2. c...View AnswerShow Answer

Indirect labor would be included in factory overhead.

Correct AnswerverifiedShow Answer

Beginning work in process is equal to

Correct AnswerverifiedShow Answer

Factory overhead includes

Correct AnswerverifiedShow Answer

Classify the following costs as direct, indirect, or neither:

Correct Answerverifieda) Indirect b) Indirect c) I...View AnswerShow Answer

Labor costs that are directly traceable to the product are part of factory overhead.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A cost can be a payment of cash for the purpose of generating revenues.

Correct AnswerverifiedShow Answer

A cost object indicates how costs are related or identified.

Correct AnswerverifiedShow Answer

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

Correct AnswerverifiedShow Answer

Insurance expense incurred on a factory building would be treated as a

Correct AnswerverifiedShow Answer

Sienna Company has the following information for January: Calculate the cost of goods manufactured.

Correct AnswerverifiedBeginning ...View AnswerShow Answer

An example of a sustainable business practice in energy is the use of wind turbines.

Correct AnswerverifiedShow Answer

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1. a
2. c...
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a) Indirect
b) Indirect
c) I...
View Answer

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Beginning ...
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Correct Answer
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