Test Bank for Managerial Accounting for Managers, 6th Edition by
k k k k k k k k k k
Eric Noreen All Chapters 1-12 Completed
kk k k k k k
,Chap 01 6e
k k
1kWhichkofkthekfollowingkstatementskarektrue?
1. Akfactoryksupervisor'sksalarykwouldkbekclassifiedkaskankindirectkcostkwithkrespectkto
k ak unitof k product.
2. Akdirectkcostkiskakcostkthatkcankbekeasilyktracedkto kthekparticular kcostkobjectk
underconsideration.
3. Akcostkcankbekdirectkorkindirect.kThekclassificationkcankchangekifkthekcostkobjectkchanges.
A) Onlykstatementk1kisktrue.
B) Statementsk1kandk2karektrue.
C) Allkofkthekstatementskarektrue.
D) Nonekofkthekstatementskarektrue.
2) Whichkofkthekfollowingkstatementskarektrue?
1. Wageskpaidkto kproductionksupervisorskwouldkbekclassifiedkaskmanufacturingkoverhead.
2. Indirectkcosts,ksuchkaskmanufacturingkoverhead,karekvariablekcosts.
3. Sellingkcostskarekindirectkcosts.
4. Administrativekcostskarekindirectkcosts.
A) Onlykstatementk1kisktrue.
B) Statementsk1kandk3karektrue.
C) Allkstatementskarektrue.
D) Nonekofkthekstatementskarektrue.
3) Whichkofkthekfollowingkstatementskarektrue?
1. Theksumkofkallkmanufacturingkcostskexceptkforkdirectkmaterialskandkdirectklaborkis
calledmanufacturingkoverhead.
k
2. Thekthreekcostkelementskordinarilykincludedkinkproductkcostskarekdirectkmaterials,
k directlabor,k andkmanufacturing koverhead.
A) Onlykstatementk1kisktrue.
B) Onlykstatementk2kisktrue.
C) Bothkofkthekstatementskarektrue.
D) Neither kofkthekstatementskarektrue.
,4) Whichk ofk thek followingk statementsk arek true?
1. Depreciationkiskalwayskconsideredkakperiodkcostkforkexternalkfinancialkreporting
kpurposesinkakmanufacturingkcompany.
2. Depreciationkonkequipmentkakcompanykuseskinkitsksellingkandkadministrative
k activitieswould k bek classified k ask ak period kcost.
A) Onlykstatementk1kisktrue.
B) Onlykstatementk2kisktrue.
C) Bothkofkthekstatementskarektrue.
D) Neither kofkthekstatementskarektrue.
5) Whichkofkthekfollowingkstatementskarektrue?
1. Conversionkcostkisktheksumkofkdirectklaborkcostkandkmanufacturingkoverheadkcost.
2. Conversionkcostkisktheksamekthingkaskmanufacturingkoverhead.
3. Conversionkcostkequalskproductkcostklesskdirectkmaterialskcost.
A) Onlykstatementk1kisktrue.
B) Statementsk1kandk3karektrue.
C) Allkstatementskarektrue.
D) Nonekofkthekstatementskarektrue.
6) Whichkofkthekfollowingkstatementskarektrue?
1. Inkakmanufacturingkcompany,kallkcostskarekperiodkcosts.
2. Sellingkandkadministrativekexpenseskarekperiodkcostskunderkgenerallykaccepted
accountingprinciples.
k
3. Thekcostkofkshippingkpartskfromkaksupplier kiskconsideredkakperiodkcost.
A) Onlykstatementk1kisktrue.
B) Onlykstatementk2kisktrue.
C) Statementsk1kandk2karektrue.
D) Statementsk1kandk3karektrue.
3
, 7) Whichk ofk thek followingk statementsk arek true?
1. Advertisingkisknotkakconsideredkakproductkcostkevenkifkitkpromoteskakspecifickproduct.
2. Productkcostskarekalsokknownkaskinventoriablekcosts.
3. Primekcostkisktheksumkofkdirectkmaterialskcostkandkdirectklabor kcost.
4. Primekcostkequalskmanufacturingkoverheadkcost.
A) Onlykstatementk1kisktrue.
B) Bothkstatementsk1kandk4karektrue.
C) Statementsk1,k2,kandk3karektrue.
D) Nonekofkthekstatementskarektrue.
8) Whichkofkthekfollowingkstatementskarektrue?
1. Ifkthekactivityklevelkincreases,kthenkonekwouldkexpectkthekfixedkcostkperkunitkto
kincreasekaswell.
2. Akfixedkcostkiskakcostkwhosekcostkperkunitkvarieskaskthekactivityklevelkriseskandkfalls.
3. Akdecreasekinkproductionkwillkordinarilykresultkinkakdecreasekinkfixedkproduction
k costs kperunit.
A) Onlykstatementk2kisktrue.
B) Onlykstatementk3kisktrue.
C) Statementsk1kandk2karektrue.
D) Statementsk1kandk3karektrue.
9) Whichkofkthekfollowingkstatementskarektrue?
1. Costkbehavior kiskconsideredkcurvilinear kwheneverkakstraightklinekiskak
reasonableapproximation kforkthekrelationkbetweenkcostkandkactivity.
2. Askactivitykdecreaseskwithinkthekrelevantkrange,kfixedkcostskremainkconstantkonka
k per kunitbasis.
3. Inkaccountkanalysis,kankaccountkiskclassifiedkaskeither kvariablekorkfixedkbasedk
onkananalyst’skpriorkknowledgekofkhowkthekcostkinkthekaccountkbehaves.
A) Onlykstatementk1kisktrue.
B) Onlykstatementk2kisktrue.
C) Onlykstatementk3kisktrue.
D) Allkstatementskarektrue.
3
k k k k k k k k k k
Eric Noreen All Chapters 1-12 Completed
kk k k k k k
,Chap 01 6e
k k
1kWhichkofkthekfollowingkstatementskarektrue?
1. Akfactoryksupervisor'sksalarykwouldkbekclassifiedkaskankindirectkcostkwithkrespectkto
k ak unitof k product.
2. Akdirectkcostkiskakcostkthatkcankbekeasilyktracedkto kthekparticular kcostkobjectk
underconsideration.
3. Akcostkcankbekdirectkorkindirect.kThekclassificationkcankchangekifkthekcostkobjectkchanges.
A) Onlykstatementk1kisktrue.
B) Statementsk1kandk2karektrue.
C) Allkofkthekstatementskarektrue.
D) Nonekofkthekstatementskarektrue.
2) Whichkofkthekfollowingkstatementskarektrue?
1. Wageskpaidkto kproductionksupervisorskwouldkbekclassifiedkaskmanufacturingkoverhead.
2. Indirectkcosts,ksuchkaskmanufacturingkoverhead,karekvariablekcosts.
3. Sellingkcostskarekindirectkcosts.
4. Administrativekcostskarekindirectkcosts.
A) Onlykstatementk1kisktrue.
B) Statementsk1kandk3karektrue.
C) Allkstatementskarektrue.
D) Nonekofkthekstatementskarektrue.
3) Whichkofkthekfollowingkstatementskarektrue?
1. Theksumkofkallkmanufacturingkcostskexceptkforkdirectkmaterialskandkdirectklaborkis
calledmanufacturingkoverhead.
k
2. Thekthreekcostkelementskordinarilykincludedkinkproductkcostskarekdirectkmaterials,
k directlabor,k andkmanufacturing koverhead.
A) Onlykstatementk1kisktrue.
B) Onlykstatementk2kisktrue.
C) Bothkofkthekstatementskarektrue.
D) Neither kofkthekstatementskarektrue.
,4) Whichk ofk thek followingk statementsk arek true?
1. Depreciationkiskalwayskconsideredkakperiodkcostkforkexternalkfinancialkreporting
kpurposesinkakmanufacturingkcompany.
2. Depreciationkonkequipmentkakcompanykuseskinkitsksellingkandkadministrative
k activitieswould k bek classified k ask ak period kcost.
A) Onlykstatementk1kisktrue.
B) Onlykstatementk2kisktrue.
C) Bothkofkthekstatementskarektrue.
D) Neither kofkthekstatementskarektrue.
5) Whichkofkthekfollowingkstatementskarektrue?
1. Conversionkcostkisktheksumkofkdirectklaborkcostkandkmanufacturingkoverheadkcost.
2. Conversionkcostkisktheksamekthingkaskmanufacturingkoverhead.
3. Conversionkcostkequalskproductkcostklesskdirectkmaterialskcost.
A) Onlykstatementk1kisktrue.
B) Statementsk1kandk3karektrue.
C) Allkstatementskarektrue.
D) Nonekofkthekstatementskarektrue.
6) Whichkofkthekfollowingkstatementskarektrue?
1. Inkakmanufacturingkcompany,kallkcostskarekperiodkcosts.
2. Sellingkandkadministrativekexpenseskarekperiodkcostskunderkgenerallykaccepted
accountingprinciples.
k
3. Thekcostkofkshippingkpartskfromkaksupplier kiskconsideredkakperiodkcost.
A) Onlykstatementk1kisktrue.
B) Onlykstatementk2kisktrue.
C) Statementsk1kandk2karektrue.
D) Statementsk1kandk3karektrue.
3
, 7) Whichk ofk thek followingk statementsk arek true?
1. Advertisingkisknotkakconsideredkakproductkcostkevenkifkitkpromoteskakspecifickproduct.
2. Productkcostskarekalsokknownkaskinventoriablekcosts.
3. Primekcostkisktheksumkofkdirectkmaterialskcostkandkdirectklabor kcost.
4. Primekcostkequalskmanufacturingkoverheadkcost.
A) Onlykstatementk1kisktrue.
B) Bothkstatementsk1kandk4karektrue.
C) Statementsk1,k2,kandk3karektrue.
D) Nonekofkthekstatementskarektrue.
8) Whichkofkthekfollowingkstatementskarektrue?
1. Ifkthekactivityklevelkincreases,kthenkonekwouldkexpectkthekfixedkcostkperkunitkto
kincreasekaswell.
2. Akfixedkcostkiskakcostkwhosekcostkperkunitkvarieskaskthekactivityklevelkriseskandkfalls.
3. Akdecreasekinkproductionkwillkordinarilykresultkinkakdecreasekinkfixedkproduction
k costs kperunit.
A) Onlykstatementk2kisktrue.
B) Onlykstatementk3kisktrue.
C) Statementsk1kandk2karektrue.
D) Statementsk1kandk3karektrue.
9) Whichkofkthekfollowingkstatementskarektrue?
1. Costkbehavior kiskconsideredkcurvilinear kwheneverkakstraightklinekiskak
reasonableapproximation kforkthekrelationkbetweenkcostkandkactivity.
2. Askactivitykdecreaseskwithinkthekrelevantkrange,kfixedkcostskremainkconstantkonka
k per kunitbasis.
3. Inkaccountkanalysis,kankaccountkiskclassifiedkaskeither kvariablekorkfixedkbasedk
onkananalyst’skpriorkknowledgekofkhowkthekcostkinkthekaccountkbehaves.
A) Onlykstatementk1kisktrue.
B) Onlykstatementk2kisktrue.
C) Onlykstatementk3kisktrue.
D) Allkstatementskarektrue.
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