Question 1

Classify each cost of a furniture manufacturer as either a product cost (PR)or a period cost (PE).

Accepted Answer

The answer of Classify each cost of a furniture manufacturer...

Question 2

Fontana Manufacturing provided the following information for the month ended March 31:

Compute cost of goods available for sale.

Accepted Answer

A)  $15,600
B)  $29,100
C)  $23,600
D)  $10,100E) A) and B)
F) A) and C)

Question 3

Which of the following is a product cost?

Accepted Answer

A)  sales commissions
B)  CEO's salary
C)  delivery van depreciation
D)  depreciation on production equipmentE) A) and B)
F) A) and C)

Question 4

A company that uses labor,equipment,supplies,and facilities to convert raw materials into finished products is a ________.

Accepted Answer

A)  merchandising company
B)  manufacturing company
C)  service company
D)  trading companyE) B) and C)
F) All of the above

Question 5

In the income statements of both manufacturing and merchandising companies,the Cost of Goods Sold account is usually the largest expense.

Accepted Answer

A) True 
 B)False

Question 6

Unit cost per service is calculated by dividing total costs by the total number of services provided.

Accepted Answer

A) True 
 B)False

Question 7

Managerial accounting reporting by a public firm is required to follow the rules of GAAP.

Accepted Answer

A) True 
 B)False

Question 8

The primary activity of manufacturing companies is to purchase goods from a wholesaler and resell them.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is a period cost for a manufacturing company?

Accepted Answer

A)  office rent
B)  wages of factory janitor
C)  insurance cost of production equipment
D)  raw materialsE) B) and C)
F) A) and B)

Question 10

Which of the following describes the cost of goods manufactured?

Accepted Answer

A)  the cost of the goods that were sold during the period
B)  the total cost of all goods that were completed,or partially completed during the period
C)  the cost of those goods that were completed during the period
D)  the total costs in inventory at the end of the periodE) A) and B)
F) B) and C)

Question 11

Samson,Inc.reported the following information for the year:

How much was the unit cost per service? (Round your answer to the nearest cent. )

Accepted Answer

A)  $5.71
B)  $3.71
C)  $2.00
D)  $7.71E) A) and D)
F) A) and C)

Question 12

Which of the following is a philosophy designed to integrate all organizational areas in order to provide customers with superior products and services,while meeting organizational goals throughout the value chain?

Accepted Answer

A)  Supply Chain Management (SCM) 
B)  Just-in-Time (JIT) Management
C)  Enterprise Resource Planning (ERP) 
D)  Total Quality Management (TQM) E) All of the above
F) B) and D)

Question 13

Identify each cost as a period cost or a product cost.
-CEO's salary

Accepted Answer

A)  Period cost
B)  Product costC) A) and B)
D) undefined

Question 14

Which of the following would be considered a period cost for a manufacturing company?

Accepted Answer

A)  indirect materials
B)  factory utilities
C)  direct labor
D)  sales salariesE) B) and D)
F) A) and B)

Question 15

Belstone,Inc.is a merchandiser of stone ornaments.It sold 15,000 units during the year.The company has provided the following information:

How much is the gross profit for the year?

Accepted Answer

A)  $212,500
B)  $349,000
C)  $176,000
D)  $178,000E) None of the above
F) B) and D)

Question 16

Identify each cost as a period cost or a product cost.
-Depreciation on manufacturing equipment

Accepted Answer

A)  Period cost
B)  Product costC) A) and B)
D) undefined

Question 17

In a manufacturing company,the salary of the sales staff is an example of a period cost.

Accepted Answer

A) True 
 B)False

Question 18

In a manufacturing company,administrative costs are included in period costs.

Accepted Answer

A) True 
 B)False

Question 19

Garrett Corporation provided the following information for the year:

What was the amount of direct materials used in production during the year?

Accepted Answer

A)  $66,000
B)  $360,000
C)  $383,000
D)  $831,000E) B) and C)
F) B) and D)

Question 20

Which of the following statements is true of managerial accounting?

Accepted Answer

A)  The external stakeholders of a company are the primary users of managerial accounting.
B)  Managerial accounting information is used to help managers plan,direct and control their operations.
C)  An external audit by an independent CPA is required for managerial accounting information.
D)  Managerial accounting information must comply with Generally Accepted Accounting Principles.E) A) and B)
F) A) and C)

Exam 16: Introduction to Managerial Accounting

In a manufacturing company,administrative costs are included in period costs.

Correct AnswerverifiedShow Answer

In a manufacturing company,the salary of the sales staff is an example of a period cost.

Correct AnswerverifiedShow Answer

Classify each cost of a furniture manufacturer as either a product cost (PR)or a period cost (PE).

Correct AnswerverifiedShow Answer

Which of the following is a product cost?

Correct AnswerverifiedShow Answer

Samson,Inc.reported the following information for the year: How much was the unit cost per service? (Round your answer to the nearest cent. )

Correct AnswerverifiedShow Answer

A company that uses labor,equipment,supplies,and facilities to convert raw materials into finished products is a ________.

Correct AnswerverifiedShow Answer

The primary activity of manufacturing companies is to purchase goods from a wholesaler and resell them.

Correct AnswerverifiedShow Answer

Identify each cost as a period cost or a product cost. -Depreciation on manufacturing equipment

Correct AnswerverifiedShow Answer

Which of the following describes the cost of goods manufactured?

Correct AnswerverifiedShow Answer

Garrett Corporation provided the following information for the year: What was the amount of direct materials used in production during the year?

Correct AnswerverifiedShow Answer

Which of the following statements is true of managerial accounting?

Correct AnswerverifiedShow Answer

In the income statements of both manufacturing and merchandising companies,the Cost of Goods Sold account is usually the largest expense.

Correct AnswerverifiedShow Answer

Which of the following is a period cost for a manufacturing company?

Correct AnswerverifiedShow Answer

Unit cost per service is calculated by dividing total costs by the total number of services provided.

Correct AnswerverifiedShow Answer

Which of the following would be considered a period cost for a manufacturing company?

Correct AnswerverifiedShow Answer

Belstone,Inc.is a merchandiser of stone ornaments.It sold 15,000 units during the year.The company has provided the following information: How much is the gross profit for the year?

Correct AnswerverifiedShow Answer

Identify each cost as a period cost or a product cost. -CEO's salary

Correct AnswerverifiedShow Answer

Which of the following is a philosophy designed to integrate all organizational areas in order to provide customers with superior products and services,while meeting organizational goals throughout the value chain?

Correct AnswerverifiedShow Answer

Fontana Manufacturing provided the following information for the month ended March 31: Compute cost of goods available for sale.

Correct AnswerverifiedShow Answer

Managerial accounting reporting by a public firm is required to follow the rules of GAAP.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified