Test Bank for Managerial Accounting for Managers, 6th Edition by Eric Noreen

Test Bank for Managerial Accounting for Managers, 6th Edition by
Eric Noreen All Chapters 1-12 Completed

,Chap 01 6e

1 Which of the following statements are true?
1. A factory supervisor's salary would be classified as an indirect cost with respect to
a unitof product.
2. A direct cost is a cost that can be easily traced to the particular cost object
underconsideration.
3. A cost can be direct or indirect. The classification can change if the cost object changes.
A) Only5vstatement5v15vis5vtrue.
B) Statements5v15vand5v25vare5vtrue.
C) All5vof5vthe5vstatements5vare5vtrue.
D) None5vof5vthe5vstatements5vare5vtrue.



2) Which5vof5vthe5vfollowing5vstatements5vare5vtrue?
1. Wages5vpaid5vto5vproduction5vsupervisors5vwould5vbe5vclassified5vas5vmanufacturing5voverh
ead.
2. Indirect5vcosts,5vsuch5vas5vmanufacturing5voverhead,5vare5vvariable5vcosts.
3. Selling5vcosts5vare5vindirect5vcosts.
4. Administrative5vcosts5vare5vindirect5vcosts.
A) Only5vstatement5v15vis5vtrue.
B) Statements5v15vand5v35vare5vtrue.
C) All5vstatements5vare5vtrue.
D) None5vof5vthe5vstatements5vare5vtrue.



3) Which5vof5vthe5vfollowing5vstatements5vare5vtrue?
1. The5vsum5vof5vall5vmanufacturing5vcosts5vexcept5vfor5vdirect5vmaterials5vand5vdirect5
labor5vis5 v calledmanufacturing5voverhead.
v

2. The5vthree5vcost5velements5vordinarily5vincluded5vin5vproduct5vcosts5vare5vdirect5vma
terials,5 v directlabor,5vand5vmanufacturing5voverhead.
A) Only5vstatement5v15vis5vtrue.
B) Only5vstatement5v25vis5vtrue.
C) Both5vof5vthe5vstatements5vare5vtrue.
D) Neither5vof5vthe5vstatements5vare5vtrue.

,4) Which5vof5vthe5vfollowing5vstatements5vare5vtrue?
1. Depreciation5vis5valways5vconsidered5va5vperiod5vcost5vfor5vexternal5vfinancial5vre
porting5 v purposesin5va5vmanufacturing5vcompany.
2. Depreciation5von5vequipment5va5vcompany5vuses5vin5vits5vselling5vand5vadminist
rative5 v activitieswould5vbe5vclassified5vas5va5vperiod5vcost.
A) Only5vstatement5v15vis5vtrue.
B) Only5vstatement5v25vis5vtrue.
C) Both5vof5vthe5vstatements5vare5vtrue.
D) Neither5vof5vthe5vstatements5vare5vtrue.



5) Which5vof5vthe5vfollowing5vstatements5vare5vtrue?
1. Conversion5vcost5vis5vthe5vsum5vof5vdirect5vlabor5vcost5vand5vmanufacturing5voverhea
d5vcost.
2. Conversion5vcost5vis5vthe5vsame5vthing5vas5vmanufacturing5voverhead.
3. Conversion5vcost5vequals5vproduct5vcost5vless5vdirect5vmaterials5vcost.
A) Only5vstatement5v15vis5vtrue.
B) Statements5v15vand5v35vare5vtrue.
C) All5vstatements5vare5vtrue.
D) None5vof5vthe5vstatements5vare5vtrue.



6) Which5vof5vthe5vfollowing5vstatements5vare5vtrue?
1. In5va5vmanufacturing5vcompany,5vall5vcosts5vare5vperiod5vcosts.
2. Selling5vand5vadministrative5vexpenses5vare5vperiod5vcosts5vunder5vgenerally5vacc
epted5 v accountingprinciples.
3. The5vcost5vof5vshipping5vparts5vfrom5va5vsupplier5vis5vconsidered5va5vperiod5vcost.
A) Only5vstatement5v15vis5vtrue.
B) Only5vstatement5v25vis5vtrue.
C) Statements5v15vand5v25vare5vtrue.
D) Statements5v15vand5v35vare5vtrue.




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, 7) Which5vof5vthe5vfollowing5vstatements5vare5vtrue?
1. Advertising5vis5vnot5va5vconsidered5va5vproduct5vcost5veven5vif5vit5vpromotes5va5vspecific5v
product.
2. Product5vcosts5vare5valso5vknown5vas5vinventoriable5vcosts.
3. Prime5vcost5vis5vthe5vsum5vof5vdirect5vmaterials5vcost5vand5vdirect5vlabor5vcost.
4. Prime5vcost5vequals5vmanufacturing5voverhead5vcost.
A) Only5vstatement5v15vis5vtrue.
B) Both5vstatements5v15vand5v45vare5vtrue.
C) Statements5v1,5v2,5vand5v35vare5vtrue.
D) None5vof5vthe5vstatements5vare5vtrue.



8) Which5vof5vthe5vfollowing5vstatements5vare5vtrue?
1. If5vthe5vactivity5vlevel5vincreases,5vthen5vone5vwould5vexpect5vthe5vfixed5vcost5vpe
r5vunit5vto5 v increase5vaswell.
2. A5vfixed5vcost5vis5va5vcost5vwhose5vcost5vper5vunit5vvaries5vas5vthe5vactivity5vlevel5vrises5van
d5vfalls.
3. A5vdecrease5vin5vproduction5vwill5vordinarily5vresult5vin5va5vdecrease5vin5vfixed5vpro
duction5 v costs5vperunit.
A) Only5vstatement5v25vis5vtrue.
B) Only5vstatement5v35vis5vtrue.
C) Statements5v15vand5v25vare5vtrue.
D) Statements5v15vand5v35vare5vtrue.



9) Which5vof5vthe5vfollowing5vstatements5vare5vtrue?
1. Cost5vbehavior5vis5vconsidered5vcurvilinear5vwhenever5va5vstraight5vlin
e5vis5va5 v reasonableapproximation5vfor5vthe5vrelation5vbetween5vcost5v
and5vactivity.
2. As5vactivity5vdecreases5vwithin5vthe5vrelevant5vrange,5vfixed5vcosts5vremain5vconsta
nt5von5va5 v per5vunitbasis.
3. In5vaccount5vanalysis,5van5vaccount5vis5vclassified5vas5veither5vvariable5vor5vfixe
d5vbased5 v on5vananalyst’s5vprior5vknowledge5vof5vhow5vthe5vcost5vin5vthe5vacco
unt5vbehaves.
A) Only5vstatement5v15vis5vtrue.
B) Only5vstatement5v25vis5vtrue.
C) Only5vstatement5v35vis5vtrue.
D) All5vstatements5vare5vtrue.




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