Question 1

Prime costs consist of direct labor and factory overhead.

Accepted Answer

A) True 
 B)False

Question 2

________ inventory consists of goods a company acquires to use in making products.

Accepted Answer

The answer of ________ inventory consists of goods a company...

Question 3

Factory overhead is charged to expense as it is incurred because it is a period cost.

Accepted Answer

A) True 
 B)False

Question 4

Indirect labor refers to the cost of workers who assist or supervise manufacturing,but they are not clearly identified with specific product units.

Accepted Answer

A) True 
 B)False

Question 5

Direct materials are not easily traced to a product.

Accepted Answer

A) True 
 B)False

Question 6

Total quality management (TQM)is a system that acquires inventory and produces only when needed.

Accepted Answer

A) True 
 B)False

Question 7

The following information is available for the year ended December 31:  The amount of raw materials used in production for the year is:

Accepted Answer

A)  $87,500.
B)  $85,700.
C)  $86,900.
D)  $85,400.
E)  $86,600.F) None of the above
G) D) and E)

Question 8

The raw materials inventory turnover ratio is raw materials purchased divided by the average raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 9

Using the information below:

-Calculate cost of goods sold for the period:

Accepted Answer

A)  $774,000.
B)  $769,000.
C)  $530,000.
D)  $535,000.
E)  $448,000.F) A) and E)
G) A) and D)

Question 10

What are prime costs? What are conversion costs?

Accepted Answer

Prime costs are expenditures directly as...

Question 11

Total manufacturing costs incurred during the year do not include:

Accepted Answer

A)  Direct materials used.
B)  Factory supplies used.
C)  Work in Process inventory,beginning balance.
D)  Direct labor.
E)  Depreciation of factory machinery.F) A) and E)
G) B) and D)

Question 12

-Calculate the cost of goods manufactured using the above information:

Accepted Answer

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

Question 13

Direct labor refers to employees who physically convert materials to finished product.

Accepted Answer

A) True 
 B)False

Question 14

A cost can be classified as either ________ or ________based how it changes,in total,with changes in the volume of activity.

Accepted Answer

fixed; var...

Question 15

The three major cost of manufacturing a product are:

Accepted Answer

A)  Marketing,selling,and administrative costs.
B)  Indirect labor,indirect materials,and fixed expenses.
C)  Direct materials,direct labor,and factory overhead.
D)  Product costs,period costs,and variable costs.
E)  General,selling,and administrative costs.F) B) and D)
G) C) and D)

Question 16

If beginning and ending work in process inventories are $5,000 and $15,000,respectively,and cost of goods manufactured is $170,000,what is the total manufacturing cost for the period?

Accepted Answer

A)  $180,000.
B)  $155,000.
C)  $160,000.
D)  $175,000.
E)  $165,000.F) None of the above
G) All of the above

Question 17

Just-in-time manufacturing techniques can be useful in ________ days' sales in raw materials inventory.

Accepted Answer

A)  keeping constant.
B)  changing upward.
C)  adding to.
D)  lowering.
E)  increasing.F) None of the above
G) A) and B)

Question 18

The schedule of cost of goods manufactured is divided into four parts consisting of all of the following except:

Accepted Answer

A)  Direct materials.
B)  Computation of cost of goods sold.
C)  Overhead.
D)  Computation of cost of goods manufactured.
E)  Direct labor.F) B) and D)
G) A) and E)

Question 19

Which of the following statements is correct concerning the days' sales in raw materials inventory ratio?

Accepted Answer

A)  It measures how long it takes raw materials to be used in production.
B)  The ratio is not useful for a manufacturer.
C)  Reveals how many times a company turns over its raw materials inventory in a period.
D)  Most companies generally prefer a higher number of days' sales in raw materials inventory.
E)  Is calculated by taking the Raw materials used/Average raw materials inventory.F) A) and B)
G) A) and D)

Question 20

All of the following statements regarding manufacturing costs are true except:

Accepted Answer

A)  Direct material costs are traceable to products.
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 overhead.
D)  When overhead costs don't vary with production,they are called fixed overhead.
E)  Overhead can be both variable and fixed.F) C) and D)
G) B) and E)

Exam 14: Managerial Accounting Concepts and Principles

Prime costs consist of direct labor and factory overhead.

Correct AnswerverifiedShow Answer

Indirect labor refers to the cost of workers who assist or supervise manufacturing,but they are not clearly identified with specific product units.

Correct AnswerverifiedShow Answer

Which of the following statements is correct concerning the days' sales in raw materials inventory ratio?

Correct AnswerverifiedShow Answer

Factory overhead is charged to expense as it is incurred because it is a period cost.

Correct AnswerverifiedShow Answer

The three major cost of manufacturing a product are:

Correct AnswerverifiedShow Answer

Using the information below: -Calculate cost of goods sold for the period:

Correct AnswerverifiedShow Answer

Total manufacturing costs incurred during the year do not include:

Correct AnswerverifiedShow Answer

If beginning and ending work in process inventories are $5,000 and $15,000,respectively,and cost of goods manufactured is $170,000,what is the total manufacturing cost for the period?

Correct AnswerverifiedShow Answer

What are prime costs? What are conversion costs?

Correct AnswerverifiedPrime costs are expenditures directly as...View AnswerShow Answer

The following information is available for the year ended December 31: The amount of raw materials used in production for the year is:

Correct AnswerverifiedShow Answer

All of the following statements regarding manufacturing costs are true except:

Correct AnswerverifiedShow Answer

Total quality management (TQM)is a system that acquires inventory and produces only when needed.

Correct AnswerverifiedShow Answer

The schedule of cost of goods manufactured is divided into four parts consisting of all of the following except:

Correct AnswerverifiedShow Answer

The raw materials inventory turnover ratio is raw materials purchased divided by the average raw materials inventory.

Correct AnswerverifiedShow Answer

Just-in-time manufacturing techniques can be useful in ________ days' sales in raw materials inventory.

Correct AnswerverifiedShow Answer

Direct materials are not easily traced to a product.

Correct AnswerverifiedShow Answer

Direct labor refers to employees who physically convert materials to finished product.

Correct AnswerverifiedShow Answer

________ inventory consists of goods a company acquires to use in making products.

Correct AnswerverifiedShow Answer

-Calculate the cost of goods manufactured using the above information:

Correct AnswerverifiedShow Answer

A cost can be classified as either ________ or ________based how it changes,in total,with changes in the volume of activity.

Correct Answerverifiedfixed; var...View AnswerShow Answer

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Prime costs are expenditures directly as...
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A cost can be classified as either or based how it changes,in total,with changes in the volume of activity.

Correct Answer
verified
fixed; var...
View Answer