Question 1

Jensen Company's period costs are

Accepted Answer

A)   $345,000
B)   $250,000
C)   $400,000
D)   $175,000E) All of the above
F) None of the above

Question 2

Period costs are operating costs that are expensed in the period in which the goods are sold.

Accepted Answer

A) True 
 B)False

Question 3

The Zoe Corporation has the following information for the month March.Determine the (a)cost of goods manufactured,and (b)cost of goods sold.

Accepted Answer

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

Question 4

Which of the following will not be found on the balance sheet of a manufacturing company?

Accepted Answer

A)   cost of goods sold
B)   materials
C)   work in process
D)   finished goodsE) None of the above
F) A) and D)

Question 5

The primary goal of managerial accounting is to provide information to

Accepted Answer

A)   investors
B)   creditors
C)   management
D)   external auditorsE) A) and B)
F) C) and D)

Question 6

Which of the following accounts will be found on the income statement?

Accepted Answer

A)   Inventory
B)   Work in Process
C)   Finished Goods
D)   Cost of Goods SoldE) B) and C)
F) A) and D)

Question 7

Indirect costs can be specifically traced to a cost object.

Accepted Answer

A) True 
 B)False

Question 8

In order to be useful to managers,managerial accounting reports should possess all of the following characteristics except

Accepted Answer

A)   provide objective measures of past operations and subjective estimates about future decisions
B)   be prepared in accordance with generally accepted accounting principles
C)   be provided at any time management needs information
D)   be prepared to report information for any unit of the business to support decision makingE) A) and B)
F) A) and C)

Question 9

Watson Company has the following data:
​
  Calculate the amount of direct materials used.

Accepted Answer

Direct materials use...

Question 10

Prime costs are the combination of direct materials and direct labor costs.

Accepted Answer

A) True 
 B)False

Question 11

Smith Company reports the following information: ​
​
 Factory overhead is 75% of the cost of direct labor.Work in process inventory on December 31 is

Accepted Answer

A)   $16,250
B)   $8,500
C)   $18,750
D)   $13,500E) A) and D)
F) All of the above

Question 12

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as

Accepted Answer

A)   factory overhead cost
B)   direct labor cost
C)   miscellaneous costs
D)   direct materials costE) A) and D)
F) A) and C)

Question 13

On the income statement of a manufacturing company,what replaces purchases in the cost of goods sold section of a retail company?

Accepted Answer

A)   finished goods
B)   cost of merchandise available
C)   cost of goods manufactured
D)   work in processE) B) and C)
F) All of the above

Question 14

Product costs include direct labor and advertising expense.

Accepted Answer

A) True 
 B)False

Question 15

Bartel Corporation produces bar stools for restaurants.For each of the following,indicate whether the cost would typically be considered direct or indirect cost for the cost object given.
-Sprinkles for decoration (indirect material)

Accepted Answer

A)  Direct
B)  IndirectC) A) and B)
D) undefined

Question 16

All of the following would be reported on the balance sheet as a current asset except

Accepted Answer

A)   factory overhead
B)   materials inventory
C)   finished goods inventory
D)   work in process inventoryE) B) and C)
F) A) and C)

Question 17

For an automotive repair shop,the wages of mechanics would be classified as direct labor cost.

Accepted Answer

A) True 
 B)False

Question 18

The Darwin Company reports the following information: ​
​
 Period costs are

Accepted Answer

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

Question 19

Sustainability information only benefits internal financial statement users in their decision making.

Accepted Answer

A) True 
 B)False

Question 20

A staff department has no direct authority over a line department.

Accepted Answer

A) True 
 B)False

Exam 15: Introduction to Managerial Accounting

All of the following would be reported on the balance sheet as a current asset except

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The Darwin Company reports the following information: ​ ​ Period costs are

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Which of the following accounts will be found on the income statement?

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Product costs include direct labor and advertising expense.

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Which of the following will not be found on the balance sheet of a manufacturing company?

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Jensen Company's period costs are

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On the income statement of a manufacturing company,what replaces purchases in the cost of goods sold section of a retail company?

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Indirect costs can be specifically traced to a cost object.

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The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as

Correct AnswerverifiedShow Answer

Watson Company has the following data: ​ Calculate the amount of direct materials used.

Correct AnswerverifiedDirect materials use...View AnswerShow Answer

Period costs are operating costs that are expensed in the period in which the goods are sold.

Correct AnswerverifiedShow Answer

Prime costs are the combination of direct materials and direct labor costs.

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Smith Company reports the following information: ​ ​ Factory overhead is 75% of the cost of direct labor.Work in process inventory on December 31 is

Correct AnswerverifiedShow Answer

Bartel Corporation produces bar stools for restaurants.For each of the following,indicate whether the cost would typically be considered direct or indirect cost for the cost object given. -Sprinkles for decoration (indirect material)

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The primary goal of managerial accounting is to provide information to

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Sustainability information only benefits internal financial statement users in their decision making.

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A staff department has no direct authority over a line department.

Correct AnswerverifiedShow Answer

In order to be useful to managers,managerial accounting reports should possess all of the following characteristics except

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The Zoe Corporation has the following information for the month March.Determine the (a)cost of goods manufactured,and (b)cost of goods sold.

Correct AnswerverifiedShow Answer

For an automotive repair shop,the wages of mechanics would be classified as direct labor cost.

Correct AnswerverifiedShow Answer

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The Darwin Company reports the following information: Period costs are

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Watson Company has the following data: Calculate the amount of direct materials used.

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Direct materials use...
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Smith Company reports the following information: Factory overhead is 75% of the cost of direct labor.Work in process inventory on December 31 is

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