ACC – Quiz 14

Multiple Choice Question 45

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Managerial accounting is applicable to

A.service entities.

B.manufacturing entities.

C.not-for-profit entities.

D.All of these.

Multiple Choice Question 46

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Management accountants would not

be concerned with the impact of cost and volume on profits.

determine cost behavior.

prepare reports primarily for external users.

assist in budget planning.

Multiple Choice Question 54

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A distinguishing feature of managerial accounting is

general-purpose reports.

very detailed reports.

quarterly and annual reports.

external users.

Multiple Choice Question 56

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Planning is a function that involves

hiring the right people for a particular job.

analyzing financial statements.

setting goals and objectives for an entity.

coordinating the accounting information system.

Multiple Choice Question 59

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A manager that is establishing objectives is performing which management function?

Directing

Planning

Constraining

Controlling

Multiple Choice Question 64

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Both direct materials and indirect materials are

sold directly to customers by a manufacturing company.

manufacturing overhead.

merchandise inventory.

raw materials.

Multiple Choice Question 65

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The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is

indirect labor.

manufacturing overhead.

indirect materials.

direct labor.

Multiple Choice Question 66

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Which one of the following would notbe classified as manufacturing overhead?

Indirect materials

Indirect labor

Direct materials

Insurance on factory building

Multiple Choice Question 67

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Manufacturing costs include

direct labor and manufacturing overhead only.

direct materials and manufacturing overhead only.

direct materials, direct labor, and manufacturing overhead.

direct materials and direct labor only.

Multiple Choice Question 69

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Which one of the following is nota cost element in manufacturing a product?

Office salaries

Manufacturing overhead

Direct labor

Direct materials

Multiple Choice Question 73

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Which of the following is nota manufacturing cost category?

Cost of goods sold

Direct materials

Direct labor

Manufacturing overhead

Multiple Choice Question 76

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Which of the following is notclassified as direct labor?

Wages of supervisors.

Copy machine operators at a copy shop.

Bottlers of beer in a brewery.

Bakers in a bakery.

Multiple Choice Question 80

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The product cost that is most difficult to associate with a product is

advertising.

manufacturing overhead.

direct materials.

direct labor.

Multiple Choice Question 82

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Which one of the following is an example of a period cost?

A change in benefits for the union workers who work in the plant of a Fortune 1000 manufacturer

A manager’s salary for work that is done in the corporate head office

Workers’ compensation insurance on factory workers’ wages allocated to the factory

A box cost associated with computers

Multiple Choice Question 90

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For inventoriable costs to become expenses under the matching principle,

the product must be finished and in stock.

the product must be expensed based on its percentage-of-completion.

the product to which they attach must be sold.

All accounts payable must be settled.

Multiple Choice Question 97

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Sunny Daze, Inc. has $20,000 of ending finished goods inventory as of December 31, 2012. If beginning finished goods inventory was $10,000 and cost of goods sold was $40,000, how much would Sunny Daze report for cost of goods manufactured?

$10,000

$50,000

$30,000

$45,000

Multiple Choice Question 100

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On the costs of goods manufactured schedule, depreciation on factory equipment

is not an inventoriable cost.

is not listed because it is included with Depreciation Expense on the income statement.

appears in the manufacturing overhead section.

is not listed because it is not a product cost.

Multiple Choice Question 103

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Cloudy Comfort Company’s accounting records reflect the following inventories:

Dec. 31, 2012

Dec. 31, 2011

Raw materials inventory

$310,000

$260,000

Work in process inventory

300,000

160,000

Finished goods inventory

190,000

150,000

During 2012, $400,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000.

Cloudy Comfort’s total manufacturing costs incurred in 2012 amounted to

$1,190,000.

$1,330,000.

$1,290,000.

$1,380,000.

Multiple Choice Question 110

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Clay Tile Manufacturing Inc.’s accounting records reflect the following inventories:

Dec. 31, 2011

Dec. 31, 2012

Raw materials inventory

$ 80,000

$ 64,000

Work in process inventory

104,000

116,000

Finished goods inventory

100,000

92,000

During 2012, Clay Tile Manufacturing purchased $960,000 of raw materials, incurred direct labor costs of $200,000, and incurred manufacturing overhead totaling $128,000.

Assume Clay Tile Manufacturing’s cost of goods manufactured for 2012 amounted to $1,160,000. How much would it report as cost of goods sold for the year?

$1,168,000

$1,200,000

$1,152,000

$1,260,000

Multiple Choice Question 150

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The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is the

total manufacturing costs.

cost of goods manufactured.

total manufacturing overhead.

total cost of work in process.