Question 1

Willow Manufacturing manufactures custom table tops. For each cost listed below, place an "X" in all of the appropriate categories.

Accepted Answer

The answer of Willow Manufacturing manufactures custom table tops. For...

Question 2

Robin Company has the following balances for the current month:  What is Robin's total manufacturing cost?

Accepted Answer

A)   $115,200
B)   $81,600
C)   $33,600
D)   $60,800E) A) and D)
F) B) and D)

Question 3

Salon de Beauty, a local hair salon, incurred the following costs last month. Place an "X" in the appropriate column to indicate whether they are direct or indirect, and whether they are variable or fixed. The cost object is customers served.

Accepted Answer

The answer of Salon de Beauty, a local hair salon,...

Question 4

Conversion costs can be defined as:

Accepted Answer

A)   manufacturing costs plus non-manufacturing costs.
B)   direct labor plus direct materials.
C)   variable costs plus fixed costs.
D)   manufacturing costs minus direct materials.E) A) and B)
F) A) and C)

Question 5

Hair salons and law firms are examples of which of the following type of organization?

Accepted Answer

A)   Retailers
B)   Service companies
C)   Manufacturing firms
D)   Merchandising companiesE) B) and C)
F) A) and B)

Question 6

Costs that can be traced to a specific cost object are:

Accepted Answer

A)   opportunity costs.
B)   direct costs.
C)   indirect costs.
D)   irrelevant costs.E) A) and B)
F) None of the above

Question 7

Nonmanufacturing costs are generally classified into what two groups?

Accepted Answer

A)   Conversion costs and prime costs.
B)   Direct materials and direct labor.
C)   Marketing costs and administrative costs.
D)   Direct labor and manufacturing overheaD.Nonmanufacturing costs are generally classified into two groups: marketing (or selling)  costs and administrative costs.E) A) and B)
F) A) and C)

Question 8

Which of the following costs is not relevant to the decision whether to replace an old computer with a new one?

Accepted Answer

A)   The cost of the new computer.
B)   The cost of the old computer.
C)   The cost of a service plan on the new computer.
D)   The cost to repair the old computer if a new computer is not purchaseD.The cost of the old computer is a sunk cost, therefore it is not relevant to the decision.E) B) and C)
F) A) and D)

Question 9

Cactus Cookies incurred the following costs this month to manufacture 1,000 jumbo chocolate chip cookies.  Calculate each of the following:
a. The total variable cost this month
b. The total fixed cost this month
c. The variable cost per cookie this month
d. The fixed cost per cookie this month
e. The total variable cost if Cactus Cookies had manufactured 2,000 cookies this month
f. The total fixed cost if Cactus Cookies had manufactured 2,000 cookies this month
g. The variable cost per cookie if Cactus Cookies had manufactured 2,000 cookies this month
h. The fixed cost per cookie if Cactus Cookies had manufactured 2,000 cookies this month

Accepted Answer

a. Total variable cost: $502.50 = $75.00...

Question 10

Pretend you are the president of the Managerial Accounting Club and you are responsible for executing the club's most important event: A recruiting event for members and local firms. How might you use the Plan-Implement-Control cycle?

Accepted Answer

A)   To plan, I would prepare a preliminary list of goals and plans and then hold a kick-off meeting with the club's membership to present and revise the plan.
B)   To control, I would identify two additional individuals within the club to help lead the event.
C)   To control, I would create a timeline and schedule of key tasks leading up to the event and assign responsibility for each task to key members of the club.
D)   To implement, I would hold regular check-in meetings to monitor progress.E) B) and C)
F) A) and D)

Question 11

Which of the following is not a characteristic of financial accounting?

Accepted Answer

A)   Financial reports are prepared according to GAAP.
B)   Information is used by external parties.
C)   Information is subjective, relevant and future-oriented.
D)   Reports are prepared periodically.E) None of the above
F) A) and C)

Question 12

Product costs are sometimes called:

Accepted Answer

A)   relevant costs.
B)   sunk costs.
C)   differential costs.
D)   inventoriable costs.E) All of the above
F) B) and C)

Question 13

"Ethics" refers to all of the following except:

Accepted Answer

A)   The standards of conduct for judging fair from unfair.
B)   The standards of conduct for judging right from wrong.
C)   The standards of conduct for judging opportunity from incentives.
D)   The standards of conduct for judging honest from dishonest.E) A) and B)
F) A) and C)

Question 14

Product costs are reported:

Accepted Answer

A)   only on the balance sheet.
B)   only on the income statement.
C)   on the balance sheet before goods are sold, and on the income statement after goods are sold.
D)   on the income statement before goods are sold, and on the balance sheet after goods are solD.Product costs are counted as inventory (an asset)  until the product is sold, at which point they are reported as Cost of Goods Sold on the income statement.E) A) and C)
F) B) and C)

Question 15

Which of the following is an indirect cost of manufacturing a table made of wood and glass for a firm that manufactures furniture?

Accepted Answer

A)   The cost of the wood in the table.
B)   The cost of the labor used to assemble the table.
C)   The cost of the glass in the table.
D)   The cost of rent on the factory where the table is manufactureD.Costs that cannot be traced to a specific cost object, or that are not worth the effort of tracing, are indirect costs, such as the cost of rent on the factory.E) A) and D)
F) A) and C)

Question 16

Managerial accounting, as compared to financial accounting, is primarily intended to facilitate:

Accepted Answer

A)   an understanding of GAAP.
B)   making decisions with timely, relevant information.
C)   conducting ethics investigations under SOX.
D)   reporting results to shareholders.E) B) and D)
F) B) and C)

Question 17

For a cost to be relevant, it must meet which of the following criteria?

Accepted Answer

A)   It must not differ between the decision alternatives and it must be incurred in the future rather than in the past.
B)   It must differ between the decision alternatives and it must be incurred in the future rather than in the past.
C)   It must not differ between the decision alternatives and it must have occurred in the past rather than in the future.
D)   It must differ between the decision alternatives and it must have occurred in the past rather than in the future.E) All of the above
F) B) and D)

Question 18

The requirement of the Sarbanes-Oxley Act that requires management to issue a report on internal controls places responsibility for the accuracy of the reporting system on:

Accepted Answer

A)   accounting managers.
B)   marketing managers.
C)   production managers.
D)   all managers.E) A) and C)
F) None of the above

Question 19

All manufacturing costs are treated as product costs

Accepted Answer

A) True 
 B)False

Question 20

A cost is $50,000 when 25,000 units are produced, and $50,000 when 50,000 units are produced. This is an example of a(n) :

Accepted Answer

A)   fixed cost.
B)   direct cost.
C)   variable cost.
D)   indirect cost.E) B) and C)
F) A) and B)

Exam 1: Introduction to Managerial Accounting

Managerial accounting, as compared to financial accounting, is primarily intended to facilitate:

Correct Answer
verified

Which of the following costs is not relevant to the decision whether to replace an old computer with a new one?

Correct Answer
verified

Conversion costs can be defined as:

Correct Answer
verified

Product costs are sometimes called:

Correct Answer
verified

Which of the following is not a characteristic of financial accounting?

Correct Answer
verified

All manufacturing costs are treated as product costs

Correct Answer
verified

Pretend you are the president of the Managerial Accounting Club and you are responsible for executing the club's most important event: A recruiting event for members and local firms. How might you use the Plan-Implement-Control cycle?

Correct Answer
verified

Costs that can be traced to a specific cost object are:

Correct Answer
verified

Hair salons and law firms are examples of which of the following type of organization?

Correct Answer
verified

Robin Company has the following balances for the current month: What is Robin's total manufacturing cost?

Correct Answer
verified

A cost is $50,000 when 25,000 units are produced, and $50,000 when 50,000 units are produced. This is an example of a(n) :

Correct Answer
verified

"Ethics" refers to all of the following except:

Correct Answer
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Correct Answer
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a. Total variable cost: $502.50 = $75.00...
View Answer

Salon de Beauty, a local hair salon, incurred the following costs last month. Place an "X" in the appropriate column to indicate whether they are direct or indirect, and whether they are variable or fixed. The cost object is customers served.

Correct Answer
verified

Nonmanufacturing costs are generally classified into what two groups?

Correct Answer
verified

The requirement of the Sarbanes-Oxley Act that requires management to issue a report on internal controls places responsibility for the accuracy of the reporting system on:

Correct Answer
verified

For a cost to be relevant, it must meet which of the following criteria?

Correct Answer
verified

Which of the following is an indirect cost of manufacturing a table made of wood and glass for a firm that manufactures furniture?

Correct Answer
verified

Product costs are reported:

Correct Answer
verified

Willow Manufacturing manufactures custom table tops. For each cost listed below, place an "X" in all of the appropriate categories.

Correct Answer
verified

Exam 1: Introduction to Managerial Accounting

Managerial accounting, as compared to financial accounting, is primarily intended to facilitate:

Correct AnswerverifiedShow Answer

Which of the following costs is not relevant to the decision whether to replace an old computer with a new one?

Correct AnswerverifiedShow Answer

Conversion costs can be defined as:

Correct AnswerverifiedShow Answer

Product costs are sometimes called:

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of financial accounting?

Correct AnswerverifiedShow Answer

All manufacturing costs are treated as product costs

Correct AnswerverifiedShow Answer

Pretend you are the president of the Managerial Accounting Club and you are responsible for executing the club's most important event: A recruiting event for members and local firms. How might you use the Plan-Implement-Control cycle?

Correct AnswerverifiedShow Answer

Costs that can be traced to a specific cost object are:

Correct AnswerverifiedShow Answer

Hair salons and law firms are examples of which of the following type of organization?

Correct AnswerverifiedShow Answer

Robin Company has the following balances for the current month: What is Robin's total manufacturing cost?

Correct AnswerverifiedShow Answer

A cost is $50,000 when 25,000 units are produced, and $50,000 when 50,000 units are produced. This is an example of a(n) :

Correct AnswerverifiedShow Answer

"Ethics" refers to all of the following except:

Correct AnswerverifiedShow Answer

Correct Answerverifieda. Total variable cost: $502.50 = $75.00...View AnswerShow Answer

Salon de Beauty, a local hair salon, incurred the following costs last month. Place an "X" in the appropriate column to indicate whether they are direct or indirect, and whether they are variable or fixed. The cost object is customers served.

Correct AnswerverifiedShow Answer

Nonmanufacturing costs are generally classified into what two groups?

Correct AnswerverifiedShow Answer

The requirement of the Sarbanes-Oxley Act that requires management to issue a report on internal controls places responsibility for the accuracy of the reporting system on:

Correct AnswerverifiedShow Answer

For a cost to be relevant, it must meet which of the following criteria?

Correct AnswerverifiedShow Answer

Which of the following is an indirect cost of manufacturing a table made of wood and glass for a firm that manufactures furniture?

Correct AnswerverifiedShow Answer

Product costs are reported:

Correct AnswerverifiedShow Answer

Willow Manufacturing manufactures custom table tops. For each cost listed below, place an "X" in all of the appropriate categories.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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a. Total variable cost: $502.50 = $75.00...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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