Question 1

Products that are in the process of being manufactured but are not yet complete are called:

Accepted Answer

A)   Raw materials inventory.
B)   Conversion costs.
C)   Cost of goods sold.
D)   Goods in process inventory.
E)   Finished goods inventory.F) A) and B)
G) B) and E)

Question 2

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 3

All of the following statements regarding manufacturing costs are except:

Accepted Answer

A)   Direct material costs that increase with production are called variable costs.
B)   The reporting of fixed and variable costs separately is not helpful to managers in analyzing cost behavior.
C)   When overhead costs vary with production, they are called variable costs.
D)   When overhead costs don't vary with production, they are called fixed overhead.
E)   Overhead can be both variable and fixed.F) A) and B)
G) A) and C)

Question 4

A manufacturing statement is also known as a schedule or listing of the:

Accepted Answer

A)   Raw materials processed.
B)   Factory supplies used.
C)   Cost of goods manufactured.
D)   Total finished goods.
E)   Cost of goods sold.F) C) and D)
G) A) and B)

Question 5

The main difference between the income statement of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.

Accepted Answer

A) True 
 B)False

Question 6

One difference between financial and managerial accounting is that the external users that use financial information must plan a company's future, but the internal users of managerial accounting information generally must decide whether to invest in or lend to a company.

Accepted Answer

A) True 
 B)False

Question 7

Calculate the cost of goods sold using the following information:

Accepted Answer

A)   $680,500.
B)   $701,900.
C)   $687,100.
D)   $674,600.
E)   $772,600.F) B) and E)
G) A) and C)

Question 8

Expenditures that flow directly to the current income statement and are not reported as assets are ___________________ costs.

Accepted Answer

The answer of Expenditures that flow directly to the current...

Question 9

Match the following terms with the appropriate definition.

Accepted Answer

The answer of Match the following terms with the appropriate...

Question 10

For a manufacturing firm, cycle time may be computed as process time + inspection time + move time - wait time.

Accepted Answer

A) True 
 B)False

Question 11

The Institute of Management Accountants Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

Accepted Answer

A) True 
 B)False

Question 12

Calculate Cost of Goods Sold for the following two companies:

Accepted Answer

The answer of Calculate Cost of Goods Sold for the...

Question 13

The process of identifying costs as direct or indirect is referred to as classifying costs by ____________.

Accepted Answer

The answer of The process of identifying costs as direct...

Question 14

Which of the following is never included in direct materials costs?

Accepted Answer

A)   Invoice costs of direct materials.
B)   Outgoing delivery charges.
C)   Materials storage costs.
D)   Materials handling costs.
E)   All of these are direct material costs.F) B) and D)
G) A) and B)

Question 15

An out-of-pocket cost requires a future cash outlay and is relevant for decision making.

Accepted Answer

A) True 
 B)False

Question 16

With respect to cycle time, companies strive to reduce non-value added time in order to improve ________________________.

Accepted Answer

The answer of With respect to cycle time, companies strive...

Question 17

Use the following data to determine the cost of goods manufactured.

Accepted Answer

A)   $102,000.
B)   $110,100.
C)   $96,600.
D)   $113,700.
E)   $100,200.F) B) and C)
G) D) and E)

Question 18

____________________ inventory consists of products in the process of being manufactured but not yet complete.

Accepted Answer

Goods in p...

Question 19

Using the information below, compute the manufacturing cycle time:

Accepted Answer

A)   7.5 hours.
B)   6.5 hours.
C)   8.0 hours.
D)   80.0 hours.
E)   7.1 hours.F) A) and B)
G) C) and D)

Question 20

Harv's Sound Systems produces speakers for movie theaters that sell for $1,200 each. Listed below are selected cost items for the production of 600 units. Classify each cost as either fixed or variable, and either a product or a period cost.

Accepted Answer

The answer of Harv's Sound Systems produces speakers for movie...

Exam 18: Managerial Accounting Concepts and Principles

Harv's Sound Systems produces speakers for movie theaters that sell for $1,200 each. Listed below are selected cost items for the production of 600 units. Classify each cost as either fixed or variable, and either a product or a period cost.

Correct AnswerverifiedShow Answer

Using the information below, compute the manufacturing cycle time:

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Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Correct AnswerverifiedShow Answer

The process of identifying costs as direct or indirect is referred to as classifying costs by ____________.

Correct AnswerverifiedShow Answer

Expenditures that flow directly to the current income statement and are not reported as assets are ___________________ costs.

Correct AnswerverifiedShow Answer

____________________ inventory consists of products in the process of being manufactured but not yet complete.

Correct AnswerverifiedGoods in p...View AnswerShow Answer

A manufacturing statement is also known as a schedule or listing of the:

Correct AnswerverifiedShow Answer

The main difference between the income statement of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.

Correct AnswerverifiedShow Answer

One difference between financial and managerial accounting is that the external users that use financial information must plan a company's future, but the internal users of managerial accounting information generally must decide whether to invest in or lend to a company.

Correct AnswerverifiedShow Answer

Which of the following is never included in direct materials costs?

Correct AnswerverifiedShow Answer

All of the following statements regarding manufacturing costs are except:

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Products that are in the process of being manufactured but are not yet complete are called:

Correct AnswerverifiedShow Answer

Use the following data to determine the cost of goods manufactured.

Correct AnswerverifiedShow Answer

An out-of-pocket cost requires a future cash outlay and is relevant for decision making.

Correct AnswerverifiedShow Answer

The Institute of Management Accountants Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

Correct AnswerverifiedShow Answer

Match the following terms with the appropriate definition.

Correct AnswerverifiedShow Answer

Calculate Cost of Goods Sold for the following two companies:

Correct AnswerverifiedShow Answer

With respect to cycle time, companies strive to reduce non-value added time in order to improve ________________________.

Correct AnswerverifiedShow Answer

Calculate the cost of goods sold using the following information:

Correct AnswerverifiedShow Answer

For a manufacturing firm, cycle time may be computed as process time + inspection time + move time - wait time.

Correct AnswerverifiedShow Answer

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Goods in p...
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