ANK-FOR-MANAGERIALACCOUNTING-12TH-EDITION-BYWARREN; QUESTION AND ASNWER

ANK-FOR-MANAGERIALACCOUNTING-12TH-EDITION-BYWARREN; QUESTION AND ASNWER Test Canvas : Test Bank Test Canvas: Test Bank Total Questions 179 Total Points 1,790 - 1. Multiple Choice: A company manufactured 50,000 units o... Points: 10 Question A company manufactured 50,000 units of a product at a cost of $450,000. They sold 40,000 units for $15 each. What is the gross margin? Answer $750,000 $240,000 $600,000 $450,000 2. Multiple Choice: A company sells goods for $150,000 th... Points: 10 Question A company sells goods for $150,000 that cost $60,000 to manufacture. Which statement(s) are true? Answer The company will recognize sales on the balance sheet of $150,000. The company will recognize $90,000 gross profit on the balance sheet. The company will decrease finished goods by $60,000. All of these are true. 3. Multiple Choice: A company used $35,000 of direct mate... Points: 10 Question A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in factory overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $32,000 respectively, the cost of goods manufactured was: Answer $218,000 $226,000 $190,000 $222,000 4. True/False: A cost can be a payment of cash for t... Points: 10 Question A cost can be a payment of cash for the purpose of generating revenues. Answer True False 5. True/False: A cost object indicates how costs are... Points: 10 Question A cost object indicates how costs are related or identified. Answer True False 6. True/False: A diagram of the operating structure ... Question A diagram of the operating structure of an organization is called an organization chart. Answer True False Points: 10 7. True/False: A performance report that identifies ... Points: 10 Question A performance report that identifies the amount of employee downtime is a financial accounting report. Answer True False 8. Multiple Choice: A plant manager’s salary may be... Question A plant manager’s salary may be referred to as: Answer either a direct cost or an indirect cost since managerial accounting is not restricted by GAAP a direct cost an indirect cost a period cost Points: 10 9. Multiple Choice: A product cost is: Question A product cost is: Answer expensed in the period in which it is incurred shown with current liabilities on the balance sheet shown on the income statement with the operating expenses expensed in the period the product is sold Points: 10 10. True/False: A report analyzing how many products ... Points: 10 Question A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report. Answer True False 11. True/False: A report analyzing the dollar savings... Points: 10 Question A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report. Answer True False 12. True/False: A staff department has no direct auth... Question A staff department has no direct authority over a line department. Answer True False Points: 10 13. True/False: A staff department or unit is one tha... Points: 10 Question A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities. Answer True False 14. Multiple Choice: Accounting designed to meet the needs... Question Accounting designed to meet the needs of decision-makers inside the business is referred Answer general accounting financial accounting managerial accounting external accounting to as: Points: 10 15. True/False: Accounting is an information system t... Points: 10 Question Accounting is an information system that provides essential data about the economic activities of an entity to various users to aid them in making informed judgments and decisions. Answer True False 16. Multiple Choice: All of the following are examples of ... Question All of the following are examples of indirect labor except: Answer maintenance personnel janitorial personnel machine operators plant managers Points: 10 17. Multiple Choice: All of the following are ways that ma... Question All of the following are ways that managers use managerial information except Answer to evaluate the company’s stock performance to evaluate the performance of a company’s operations to support long-term planning decisions to determine the cost of manufacturing a product Points: 10 18. Multiple Choice: All of the following employees hold l... Question All of the following employees hold line positions in Anthea Electric EXCEPT: Answer vice president of production vice president of finance manager of the Valhalla Plant vice president of sales Points: 10 19. Multiple Choice: All of the following would be reporte... Question All of the following would be reported on the balance sheet as a current asset except: Answer factory overhead materials inventory finished goods inventory work in process inventory Points: 10 20. Multiple Choice: All of the following would probably b... Question All of the following would probably be considered a direct Answer steel fabric glue lumber material except: Points: 10 21. Essay: Allen Company used $71,000 of direct ... Points: 10 Question Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during 2011. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100; maintenance of $4,500; supplies of $1,800; depreciation of $7,900; and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance. Prepare a statement of cost of goods manufactured. Answer Allen Company Statement of Cost of Goods Manufactured For the Year Ended December 31, 2011 22. Multiple Choice: An example of a period cost is: Question An example of a period cost is: Answer advertising expense indirect materials depreciation on factory equipment property taxes on plant facilities Points: 10