Question 1

For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given.
-Selling costs for the period

Accepted Answer

A)  Product
B)  PeriodC) A) and B)
D) undefined

Question 2

The costs of materials and labor that do not enter directly into the finished product are classified as factory overhead.

Accepted Answer

A) True 
 B)False

Question 3

The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 4

Managers used managerial information for all of the following except

Accepted Answer

A)  to evaluate the company's stock performance
B)  to analyze the performance of a company's operations
C)  to support long-term planning decisions
D)  to determine the cost of manufacturing a productE) All of the above
F) A) and B)

Question 5

Factory overhead is an example of a product cost.

Accepted Answer

A) True 
 B)False

Question 6

For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given.
-Tires for the bicycles

Accepted Answer

A)  Product
B)  PeriodC) A) and B)
D) undefined

Question 7

Match the items below for a bakery to the type of cost a-d.
-Factory rent

Accepted Answer

A)  Direct materials
B)  Direct labor
C)  Factory overhead
D)  Non-manufacturing costE) A) and C)
F) A) and B)

Question 8

Jensen Company's period costs are

Accepted Answer

A)  $345,000
B)  $250,000
C)  $400,000
D)  $175,000E) None of the above
F) B) and C)

Question 9

Another term for factory overhead is

Accepted Answer

A)  surplus
B)  period cost
C)  supervisory cost
D)  factory burdenE) C) and D)
F) A) and D)

Question 10

What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?

Accepted Answer

A)  improving
B)  controlling
C)  directing
D)  planningE) B) and C)
F) A) and D)

Question 11

The Darwin Company reports the following information:  Period costs are

Accepted Answer

A)  $24,500
B)  $30,300
C)  $29,200
D)  $35,000E) None of the above
F) A) and C)

Question 12

Which of the following items would not be classified as part of factory overhead?

Accepted Answer

A)  direct labor used
B)  amortization of manufacturing patents
C)  production supervisors' salaries
D)  factory supplies usedE) All of the above
F) B) and C)

Question 13

A company manufactured 50,000 units of a product at a cost of $450,000.It sold 45,000 units at $15 each.The gross profit is

Accepted Answer

A)  $750,000
B)  $240,000
C)  $600,000
D)  $270,000E) None of the above
F) B) and C)

Question 14

The following are some of the costs incurred by Cupcake Company.Identify them as either:
-Depreciation expense-office

Accepted Answer

A)  Prime costs
B)  Conversion costs
C)  Both prime and conversion costs
D)  Neither prime or conversion costsE) C) and D)
F) A) and B)

Question 15

Which of the following is most associated with managerial accounting?

Accepted Answer

A)  must follow GAAP
B)  may rely on estimates and forecasts
C)  is prepared for users outside the organization.
D)  always reports on the entire entityE) B) and D)
F) C) and D)

Question 16

Product costs are not expensed until the product is sold.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following costs are conversion costs?

Accepted Answer

A)  direct labor cost and factory overhead cost
B)  direct materials cost and direct labor cost
C)  factory overhead cost
D)  direct materials cost and factory overhead costE) None of the above
F) C) and D)

Question 18

Match the items below for a bakery to the type of cost a-d.
-Salesman commissions

Accepted Answer

A)  Direct materials
B)  Direct labor
C)  Factory overhead
D)  Non-manufacturing costE) A) and B)
F) B) and D)

Question 19

Indirect labor and indirect materials are classified as

Accepted Answer

A)  factory overhead and product costs
B)  factory overhead and period costs
C)  operating costs and period costs
D)  operating costs and product costsE) B) and C)
F) B) and D)

Question 20

Bartel Corporation produces bar stools for restaurants.For each of the following, indicate whether the cost would typically be considered direct or indirect cost for the cost object given.
-Manufacturing costs for wood and steel used in the bar stools

Accepted Answer

A)  Direct
B)  IndirectC) A) and B)
D) undefined

Exam 1: Managerial Accounting Concepts and Principles

Indirect labor and indirect materials are classified as

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The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.

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Managers used managerial information for all of the following except

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What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?

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The costs of materials and labor that do not enter directly into the finished product are classified as factory overhead.

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Match the items below for a bakery to the type of cost a-d. -Factory rent

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For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given. -Selling costs for the period

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Product costs are not expensed until the product is sold.

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Factory overhead is an example of a product cost.

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The Darwin Company reports the following information: Period costs are

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Which of the following items would not be classified as part of factory overhead?

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Jensen Company's period costs are

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Which of the following costs are conversion costs?

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Match the items below for a bakery to the type of cost a-d. -Salesman commissions

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The following are some of the costs incurred by Cupcake Company.Identify them as either: -Depreciation expense-office

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Another term for factory overhead is

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A company manufactured 50,000 units of a product at a cost of $450,000.It sold 45,000 units at $15 each.The gross profit is

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Bartel Corporation produces bar stools for restaurants.For each of the following, indicate whether the cost would typically be considered direct or indirect cost for the cost object given. -Manufacturing costs for wood and steel used in the bar stools

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Which of the following is most associated with managerial accounting?

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For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given. -Tires for the bicycles

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