Question 1

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) B) and E)
G) A) and B)

Question 2

The concept of total quality management focuses on continuous improvement.

Accepted Answer

A) True 
 B)False

Question 3

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) B) and E)
G) A) and E)

Question 4

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) B) and D)
G) A) and C)

Question 5

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) A) and E)
G) A) and B)

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) A) and C)
G) C) and E)

Question 7

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

Accepted Answer

just-in-ti...

Question 8

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 C)
G) C) and E)

Question 9

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...

Question 10

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 11

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 12

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) C) and D)
G) A) and B)

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) A) and C)
G) C) and E)

Question 14

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) B) and D)
G) B) and C)

Question 15

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) C) and D)

Question 16

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) All of the above
G) A) and D)

Question 17

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 18

____________________ 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 19

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 20

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)

Exam 18: Managerial Accounting Concepts and Principles

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

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

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

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A fixed cost:

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

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

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

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

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

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

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

The concept of total quality management focuses on continuous improvement.

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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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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