78 free test bank for managerial accounting 4th

Free Test Bank with Answers for Accounting Information Systems 1st Test Bank with Answers for Intermediate Accounting Principles and Analysis 2nd Test Bank with Answers for Financial Accounting An Introduction. Free Test Bank with Answers for Auditing and Assurance Services Understandin Test Bank with Answers for Financial Accounting An Introduction to Concepts Methods and Uses Test Bank with Answers for Advanced Accounting 12th Edition Test Bank with Answers for Auditing A Business Risk Approach 8th Edition Test Bank for Survey of Accounting 6th Free Test Bank for Fundamental Financial and Managerial Accounting Concepts Test Bank for International Accounting 4th Edition Free Test Bank for Financial Accounting Tools for Business Decision Making 6three Test Bank for Introduction to Financial Accounting 11th Free Test Bank for Management Accounting with Answers Ngân hàng câu hỏi trắc nghiệm Hệ thống thông tin kế toán, Ngân hàng câu hỏi kèm đáp án đề trắc nghiệm Tài chính kế toán, đề trắc nghiệm Quản trị kế toán, kế toán nâng cao Test Bank for Managerial Accounting with Answers Miễn phí Đề thi trắc nghiệm có đáp án, Test Bank for Management Accounting, Bank with Answers for Advanced Accounting, đề trắc nghiệm tài chính kế toán Free download Test bank with Answers for Finance Accounting, Managerial Accounting

78 Free Test Bank for Managerial Accounting 4th

Edition by Wild

Multiple Choice Questions

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

1 A Raw materials inventory.

2 B Conversion costs.

3 C Cost of goods sold.

4 D Goods in process inventory.

5 E Finished goods inventory.

The Malcolm Baldrige Award was established by:

1 A The United Nations.

2 B The U S Chamber of Commerce.

3 C The Malcolm Baldrige Foundation.

4 D The U S Congress.

5 E The SEC.

An opportunity cost is:

1 A An uncontrollable cost.

2 B A cost of potential benefit lost.

3 C A change in the cost of a component.

4 D A direct cost.

5 E A sunk cost.

Which of the following costs is not included in factory overhead?

1 A Payroll taxes on the wages of supervisory factory workers.

2 B Indirect labor.

3 C Depreciation of manufacturing equipment.

4 D Manufacturing supplies used.

5 E Direct materials.

Materials that are used in support of the production process but that

do not become a part of the product and are not clearly identified with units or batches of product are called:

Goods a company acquires to use in making products are called:

1 A Cost of goods sold.

2 B Raw materials inventory.

3 C Finished goods inventory.

4 D Goods in process inventory.

5 E Conversion costs.

The following are all examples of product costs:

1 A Direct material, direct labor and indirect labor.

2 B Direct labor, VP of sales salary, and insurance on the factory.

3 C Depreciation on the factory equipment, depreciation on the office building, and depreciation on the factory building.

4 D Factory insurance, interest expense, and property taxes on the factory.

5 E Office supplies, sales commissions, and maintenance costs on office copier.

Days’ sales in raw materials inventory is a measure of:

1 A How much raw materials are needed for the company to earn a profit.

2 B How long it takes the company to pay for raw materials

3 C How many times a company turns over its raw materials during a period.

4 D How long it takes raw materials to be used in production.

5 E The product costs a company has incurred during a period.

The cost of labor that is not clearly associated with specific units or batches of product is called:

1 A Property taxes on maintenance machinery.

2 B Expired insurance on factory equipment.

3 C Wages of the factory janitor.

4 D Metal doorknobs used on wood cabinets produced.

5 E Small tools used in production.

Continuous improvement:

1 A Is a measure of profits.

2 B Is a measure of costs.

3 C Rejects the notion of "good enough."

4 D Is not applicable to most businesses.

5 E Is possible only in service businesses.

Product costs:

1 A Are expenditures necessary and integral to finished products.

2 B Are expenditures identified more with a time period rather than with

finished products.

3 C Include selling and administrative expenses.

4 D Are only costs that vary with the volume of activity.

5 E Are only costs that do not vary with the volume of activity.

Managerial accounting is different from financial accounting in that:

1 A Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization.

2 B Managerial accounting never includes nonmonetary information.

3 C Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.

4 D Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors.

5 E Managerial accounting is mainly used to set stock prices.

Managerial accounting information:

1 A Is used mainly by external users.

2 B Involves gathering information about costs for planning and control

decisions.

3 C Is generally the only accounting information available to managers.

4 D Can be used for control purposes but not for planning purposes.

5 E Has little to do with controlling costs.

Which of the following is not a characteristic of all fraud?

1 A It is done to provide direct or indirect benefit to the employee.

2 B It violates the employee’s duties to his employer.

3 C It costs the employer money.

4 D It is secret.

5 E Can be intentional or unintentional.

The way of doing business whose goal is to eliminate waste while satisfying the customer and providing a positive return to the

5 E Lean business model.

Raw materials that physically become part of the product and can

be traced to specific units or batches of product are called:

1 A Raw materials sold

1 A 10.52 days.

2 B 34.15 days

3 C 10.06 days

4 D 38.42 days

5 E 9.35 days

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

1 A) Invoice costs of direct materials.

2 B) Outgoing delivery charges.

3 C) Materials storage costs.

4 D) Materials handling costs.

5 E) Insurance on stored material.

Products that have been completed and are ready to be sold by the manufacturer are called:

1 A Finished goods inventory.

2 B Goods in process inventory.

3 C Raw materials inventory.

4 D Cost of goods sold.

5 E Factory supplies.

Period costs for a manufacturing company would flow directly to:

1 A, The current income statement.

2 B, Factory overhead.

3 C, The current balance sheet.

4 D, Job cost sheet.

5 E, The current manufacturing statement.

A fixed cost:

1 A Requires the future outlay of cash and is relevant for future decision making.

2 B Does not change with changes in the volume of activity within the relevant range.

3 C Is directly traceable to a cost object.

4 D Changes with changes in the volume of activity within the relevant range.

5 E Has already been incurred and cannot be avoided so it is irrelevant for decision making.

The following costs are included in a recent summary of data for a company: advertising expense, $85,000; depreciation expense – factory building, $133,000; direct labor, $250,000; direct material used, $300,000; factory utilities, $105,000; and sales salaries

expense, $150,000 Determine the dollar amount of conversion costs

An attitude of constantly seeking ways to improve company

operations, including customer service, product quality, product features, the production process, and employee interactions, is called:

Costs that are incurred as part of the manufacturing process but arenot clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct

material and direct labor costs, are called:

3 C The managerial accountants need to be on call 24 hours a day.

4 D The design of a company's managerial accounting system largely depends

on the nature of the business and the arrangement of the internal operations of the company.

5 E Managers must be flexible with information provided in varying forms and using inconsistent measures.

The salary paid to the supervisor of an assembly line would

normally be classified as:

Assuming production needs can be met, companies usually prefer:

1 A A lower number of days’ sales in raw materials inventory.

2 B A higher number of days’ sales in raw materials inventory.

3 C That days’ sales in inventory be higher than the days in the accounting period.

4 D That days’ sales in inventory be greater than the operating cycle

5 E That days’ sales in inventory be equal to the days in the accounting periodCosts classified by controllability are useful for:

1 A The balance sheet

2 B The income statement

3 C The budgeting process

4 D Evaluation reports

5 E Determining product cost

The Institute of Management Accountants has developed a code of ethics that requires management accountants to behave in certain ways Which of the following behaviors is not required?

4 D Administrative costs

5 E Fixed costs

The three major cost components of a manufactured product are:

1 A Marketing, selling, and administrative costs.

2 B Indirect labor, indirect materials, and miscellaneous factory expenses.

3 C Direct materials, direct labor, and factory overhead.

4 D Differential costs, opportunity costs, and sunk costs.

5 E General, selling, and administrative costs.

An approach to managing inventories and production operations such that units of materials and products are obtained and providedonly as they are needed is called:

1 A Continuous improvement.

2 B Customer orientation.

3 C Just-in-time manufacturing.

4 D Theory of constraints.

5 E Total quality management.

The following costs are included in a recent summary of data for a company: advertising expense, $85,000; depreciation expense – factory building, $133,000; direct labor, $250,000; direct material used, $300,000; factory utilities, $105,000; and sales salaries

expense, $150,000 Determine the dollar amount of prime costs

A direct cost is a cost that is:

1 A Identifiable as controllable.

2 B Recorded as part of manufacturing overhead.

3 C Fixed with respect to the volume of activity.

4 D Traceable to a cost object.

5 E Sunk with respect to a cost object.

Which of the following statements regarding fraud is true?

1 A Fraud is a deliberate act.

2 B Fraud can be deliberate or unintentional.

3 C A company with a strong code of ethics can eliminate fraud.

4 D A company with strong internal controls can eliminate fraud.

5 E The most common type of fraud is financial statement fraud.

Which of the following statements is true?

1 A The IMA’s Statement of Ethical Professional Practice requires

management accountants to be incompetent, maintain confidentiality, act with integrity, and communicate information in a fair and credible manner.

2 B The IMA’s Statement of Ethical Professional Practice requires

management accountants to be competent, maintain confidentiality, eliminate all fraud, and communicate information in a fair and credible manner.

3 C The IMA’s Statement of Ethical Professional Practice requires

management accountants to be incompetent, maintain confidentiality, act with integrity, and miscommunicate information in a credible manner.

4 D The IMA’s Statement of Ethical Professional Practice requires

management accountants to be competent, maintain confidentiality, act with integrity, and communicate information in a fair and credible manner.

5 E The IMA’s Statement of Ethical Professional Practice requires

management accountants to perform certain checks for fraud, act with integrity, and communicate information in a fair and credible manner.

Another title for goods in process inventory is:

1 A Indirect materials inventory.

2 B Work in process inventory.

3 C Conversion costs.

4 D Direct materials inventory.

5 E Raw materials inventory.

Costs that flow directly to the current income statement are called:

A management concept that encourages all managers and

employees to be in tune with the wants and needs of customers, and which leads to flexible product designs and production

5 E Total quality management.

Classifying costs by behavior involves:

1 A Identifying fixed cost and variable cost.

2 B Identifying cost of goods sold and operating costs.

3 C Identifying all costs.

4 D Identifying costs in a physical manner.

5 E Identifying both quantitative and qualitative cost factors.

A management concept that applies quality improvement to all aspects of business activities is called:

1 A Continuous operations.

2 B Customer orientation.

3 C Just-in-time.

4 D Managerial accounting.

5 E Total quality management.

Labor costs that are clearly associated with specific units or batches

of product because the labor is used to convert raw materials into finished products called are:

78 Free Test Bank for Managerial Accounting 4th

Edition by Wild Multiple Choice Questions - Page 2

Use the following information to compute the cost of goods

manufactured: Beginning finished goods inventory $65,000;

Beginning goods in process inventory 81,000; Beginning raw

materials 73,000; Depreciation on factory equipment 7,000; Direct labor 25,000; Ending finished goods inventory 67,000; Ending

goods in process inventory 79,000; Ending raw materials 60,000; Factory repairs and maintenance 12,000; Raw material purchases 50,000

1 A $63,000

5 E $89,000

Current information for the Austin Company follows: Beginning raw materials inventory $15,200; Beginning goods in process inventory 22,400; Ending raw materials inventory 16,600; Ending goods in process inventory 28,000; Direct labor 42,800; Total factory

overhead 30,000; Raw material purchases 60,000 All raw materialsused were traceable to specific batches of product Austin

Company's cost of goods manufactured for the year is:

equaled $800,000, what is the amount of cost of goods

manufactured for this period?

1 A $706,000

2 B $709,000

3 C $797,000

4 D $803,000

5 E $3,000

Which of the following items appears only in a manufacturing

company's financial statements?

1 A Cost of goods sold.

2 B Cost of goods manufactured.

3 C Goods available for sale.

4 D Gross profit.

5 E Net income.

Use the following information to compute the total manufacturing costs incurred during the period: Beginning raw materials $ 5,500; Ending raw materials 4,000; Direct labor 12,250; Raw material purchases 7,400; Depreciation on factory equipment 6,500; Factoryrepairs and maintenance 3,300; Beginning finished goods inventory10,200; Ending finished goods inventory 8,900; Beginning goods in process inventory 5,700; Ending goods in process inventory 6,300

1 A Cost of goods sold.

2 B Cost of goods purchased.

3 C Cost of goods available.

4 D Beginning merchandise inventory.

5 E Ending merchandise inventory.

Use the following data to determine the cost of goods

manufactured: Beginning finished goods inventory $10,800; Direct labor 30,600; Beginning goods in process inventory 7,200; General and administrative expenses 13,500; Direct materials used 40,500; Ending goods in process inventory 9,000; Indirect labor 6,300; Ending finished goods inventory 9,500; Indirect materials 13,500; Depreciation – factory equipment 7,500

expense, $150,000 Determine the dollar amount of overhead

costs

1 A $1,023,000

2 B $550,000

3 C $488,000

4 D $235,000

5 E $238,000

A manufacturing company has a beginning finished goods inventory

of $14,600, raw material purchases of $18,000, cost of goods

manufactured of $32,500, and an ending finished goods inventory

of $17,800 The cost of goods sold for this company is:

Compute cost of goods manufactured for this period given the

following amounts Ending finished goods inventory $66,000; Cost

of goods sold 54,000; Beginning finished goods inventory 60,000

1 A Raw materials processed.

2 B Factory supplies used.

3 C Cost of goods manufactured.

4 D Total finished goods.

5 E Cost of goods sold.

What is the correct amount of cost of goods manufactured?