Question 1

A manufacturing firm's cost of goods manufactured is equivalent to a merchandising firm's:

Accepted Answer

A)  Cost of goods sold.
B)  Cost of goods purchased.
C)  Cost of goods available.
D)  Beginning merchandise inventory.
E)  Ending merchandise inventory.F) B) and D)
G) None of the above

Question 2

____________________ is the process of monitoring planning decisions and evaluating an organization's activities and employees.

Accepted Answer

The answer of ____________________ is the process of monitoring planning...

Question 3

Using the information below,compute the raw materials inventory turnover:

Accepted Answer

A)  11.02.
B)  382.02.
C)  10.06.
D)  9.94.
E)  9.50.F) A) and D)
G) A) and C)

Question 4

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) B) and E)
G) D) and E)

Question 5

The concept of total quality management focuses on continuous improvement.

Accepted Answer

A) True 
 B)False

Question 6

Using the information below for Sundar Company;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 D)
G) A) and E)

Question 7

When the attitude of continuous improvement exists throughout an organization,every manager and employee is challenged to continuously experiment with new and improved business practices.

Accepted Answer

A) True 
 B)False

Question 8

The purpose of managerial accounting information is to help ________________ users make decisions while the purpose of financial accounting is to help _____________ users make decisions.
Answers must appear in this order.

Accepted Answer

The answer of The purpose of managerial accounting information is...

Question 9

A management concept that seeks to uncover and eliminate waste in all aspects of business activities is called:

Accepted Answer

A)  Continuous operations.
B)  Customer orientation.
C)  Just-in-time.
D)  Theory of constraints.
E)  Total quality management.F) A) and D)
G) C) and D)

Question 10

Using the information below,compute the Days' sales in raw materials inventory:

Accepted Answer

A)  11.02.
B)  36.3.
C)  10.06.
D)  9.94.
E)  38.4.F) A) and E)
G) C) and D)

Question 11

Both financial and managerial accounting rely on accepted principles that are enforced through an extensive set of rules and guidelines.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  Identifying fixed cost 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) A) and E)
G) A) and D)

Question 13

Use the following information to compute the cost of goods manufactured:

Accepted Answer

A)  $36,650.
B)  $30,950.
C)  $30,650.
D)  $30,350.
E)  $31,650.F) All of the above
G) None of the above

Question 14

If the cost of the beginning work in process inventory is $60,000,costs of goods manufactured is $890,000,direct materials cost is $330,000,direct labor cost is $210,000,and overhead cost is $315,000,calculate the ending work in process inventory:

Accepted Answer

A)  $35,000.
B)  $25,000.
C)  $45,000.
D)  $350,000.
E)  $355,000.F) C) and E)
G) A) and B)

Question 15

Which of the following costs is not included in factory overhead?

Accepted Answer

A)  Payroll taxes on the wages of factory supervisors.
B)  Indirect labor.
C)  Depreciation of manufacturing equipment.
D)  Manufacturing supplies used.
E)  Direct materials.F) D) and E)
G) C) and E)

Question 16

A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:

Accepted Answer

A)  Fixed versus variable.
B)  Direct versus indirect.
C)  Financial versus managerial.
D)  Service versus manufacturing.
E)  Product versus period.F) A) and E)
G) All of the above

Question 17

A _________________ system means that a company acquires or produces inventory only when needed.

Accepted Answer

just-in-ti...

Question 18

A fixed cost:

Accepted Answer

A)  Requires the future outlay of cash and is relevant for future decision making.
B)  Does not change with changes in the volume of activity within the relevant range.
C)  Is directly traceable to a cost object.
D)  Changes with changes in the volume of activity within the relevant range.
E)  Is irrelevant for cost-volume-profit and short-term decision making.F) A) and B)
G) None of the above

Question 19

A manufacturing company has a beginning finished goods inventory of $14,600,raw material purchases of $18,000,cost of goods manufactured of $32,500,and an ending finished goods inventory of $17,800.The cost of goods sold for this company is:

Accepted Answer

A)  $21,200.
B)  $29,300.
C)  $32,500.
D)  $47,100.
E)  $27,600.F) A) and D)
G) B) and D)

Question 20

A _________________ cost changes in total in proportion to changes in the volume of activity.

Accepted Answer

The answer of A _________________ cost changes in total in...

Exam 18: Managerial Accounting Concepts and Principles

Using the information below for Sundar Company;determine the cost of goods manufactured during the current year:

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Which of the following costs is not included in factory overhead?

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A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:

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A manufacturing firm's cost of goods manufactured is equivalent to a merchandising firm's:

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A management concept that seeks to uncover and eliminate waste in all aspects of business activities is called:

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The purpose of managerial accounting information is to help ________________ users make decisions while the purpose of financial accounting is to help _____________ users make decisions. Answers must appear in this order.

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Using the information below,compute the Days' sales in raw materials inventory:

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A _________________ system means that a company acquires or produces inventory only when needed.

Correct Answerverifiedjust-in-ti...View AnswerShow Answer

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

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Using the information below,compute the raw materials inventory turnover:

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

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Both financial and managerial accounting rely on accepted principles that are enforced through an extensive set of rules and guidelines.

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When the attitude of continuous improvement exists throughout an organization,every manager and employee is challenged to continuously experiment with new and improved business practices.

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If the cost of the beginning work in process inventory is $60,000,costs of goods manufactured is $890,000,direct materials cost is $330,000,direct labor cost is $210,000,and overhead cost is $315,000,calculate the ending work in process inventory:

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A _________________ cost changes in total in proportion to changes in the volume of activity.

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The concept of total quality management focuses on continuous improvement.

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A manufacturing company has a beginning finished goods inventory of $14,600,raw material purchases of $18,000,cost of goods manufactured of $32,500,and an ending finished goods inventory of $17,800.The cost of goods sold for this company is:

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Use the following information to compute the cost of goods manufactured:

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A fixed cost:

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____________________ is the process of monitoring planning decisions and evaluating an organization's activities and employees.

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The purpose of managerial accounting information is to help ____ users make decisions while the purpose of financial accounting is to help _ users make decisions. Answers must appear in this order.

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just-in-ti...
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