Question 1

The following are some of the costs incurred by Cupcake Company.Identify them as either:
-Salesman commissions

Accepted Answer

A)  Prime costs
B)  Conversion costs
C)  Both prime and conversion costs
D)  Neither prime or conversion costs

Question 2

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

Accepted Answer

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

Question 3

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' equity

Question 4

Zoe Corporation has the following information for the month of March:
  Prepare a a schedule of cost of goods manufactured, b an income statement for the month ended March 31, and c the inventory section of the balance sheet.

Accepted Answer

The answer of Zoe Corporation has the following information for...

Question 5

Accounting designed to meet the needs of decision makers inside the business is

Accepted Answer

A)  general accounting
B)  financial accounting
C)  managerial accounting
D)  external accounting

Question 6

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 ...

Question 7

Managerial information is for external as well as internal stakeholders.

Accepted Answer

A) True 
 B)False

Question 8

Prime costs are the combination of direct labor costs and factory overhead costs.

Accepted Answer

A) True 
 B)False

Question 9

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 overhead

Question 10

A plant manager's salary is

Accepted Answer

A)  a direct cost and an indirect cost
B)  a direct cost
C)  an indirect cost
D)  a period cost

Question 11

Which of the following is an example of a factory overhead cost?

Accepted Answer

A)  repair and maintenance cost on the administrative building
B)  factory heating and lighting cost
C)  insurance premiums on salespersons' automobiles
D)  president's salary

Question 12

A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not a factory overhead cost?

Accepted Answer

A)  materials used directly in the manufacturing process of the product
B)  insurance on factory equipment
C)  salaries of production supervisors
D)  property tax on factory building

Question 14

What is the primary criterion for the preparation of managerial accounting reports?

Accepted Answer

A)  relevance of the reports
B)  manager needs
C)  timing of the reports
D)  cost of the reports

Question 15

Managerial accounting reports must be prepared according to generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 16

Rent expense on a factory building would be treated as an

Accepted Answer

A)  period cost
B)  product cost
C)  indirect cost
D)  direct material cost

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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.

Question 19

Keeton Company had the following data:
Cost of materials used $60,000
Direct labor costs 58,000
Factory overhead 33,000
Work in process, beg.29,000
Work in process, end.18,000
Finished goods, beg.32,000
Finished goods, end.18,000
Calculate the cost of goods sold.

Accepted Answer

Cost of goods sold =...

Question 20

A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities.

Accepted Answer

A) True 
 B)False

Exam 1: Managerial Accounting Concepts and Principles

A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report.

Correct AnswerverifiedShow Answer

Accounting designed to meet the needs of decision makers inside the business is

Correct AnswerverifiedShow Answer

Which of the following is not a factory overhead cost?

Correct AnswerverifiedShow Answer

A plant manager's salary is

Correct AnswerverifiedShow Answer

Keeton Company had the following data: Cost of materials used $60,000 Direct labor costs 58,000 Factory overhead 33,000 Work in process, beg.29,000 Work in process, end.18,000 Finished goods, beg.32,000 Finished goods, end.18,000 Calculate the cost of goods sold.

Correct AnswerverifiedCost of goods sold =...View AnswerShow Answer

Zoe Corporation has the following information for the month of March: Prepare a a schedule of cost of goods manufactured, b an income statement for the month ended March 31, and c the inventory section of the balance sheet.

Correct AnswerverifiedShow Answer

Managerial accounting reports must be prepared according to generally accepted accounting principles.

Correct AnswerverifiedShow Answer

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

Managerial information is for external as well as internal stakeholders.

Correct AnswerverifiedShow Answer

What is the primary criterion for the preparation of managerial accounting reports?

Correct AnswerverifiedShow Answer

A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Prime costs are the combination of direct labor costs and factory overhead costs.

Correct AnswerverifiedShow Answer

The following are some of the costs incurred by Cupcake Company.Identify them as either: -Salesman commissions

Correct AnswerverifiedShow Answer

Prime costs are

Correct AnswerverifiedShow Answer

Rent expense on a factory building would be treated as an

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 Answerverified1 c2 b3 ...View AnswerShow Answer

Which of the following is an example of a factory overhead cost?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Cost of goods sold =...
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1 c
2 b
3 ...
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