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Exam 16: Managerial Accounting Concepts and Principles

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Question 41

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Which of the following are reported on the income statement as part of cost of goods?

A) administrative expenses
B) period costs
C) cost of goods manufactured
D) operating expenses

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Question 42

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In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except

A) provide objective measures of past operations and subjective estimates about future decisions
B) be prepared in accordance with generally accepted accounting principles
C) be provided at any time management needs information
D) be prepared to report information for any unit of the business to support decision making

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Question 43

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Match the items below for a bakery to the type of cost a-d) . -Salesman commissions

Direct labor costs are included in the conversion costs of a product.

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

A company sells goods for $150,000 that cost $54,000 to manufacture. Which statement is true?

On the income statement of a manufacturing company, what replaces purchases in the cost of goods sold section of a retail company?

All of the following would be reported on the balance sheet as a current asset except

The following data in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year.

Cost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000. Work in process inventory during the year decreased by 60%. Total manufacturing costs incurred are

A cost can be a payment of cash for the purpose of generating revenues.

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given. -Delivery costs to take the bicycles to stores

Managerial accounting uses only past data in reports to aid management in the decision making process.

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered direct or indirect cost for the cost object given. -Lubricants used on the bar stool manufacturing equipment

The phases of the management process are listed below. Match each phase to the appropriate description. Planning Directing Controlling Improving Decision making a) Used by managers for continuous improvement b) Managers must decide how to respond to unfavorable performances c) Used by management to develop the organization's objectives and goals d) Monitoring the operating results of implemented plans and comparing actual results to expected results e) Process by which managers run day-to-day operations

Factory overhead is an example of a product cost.

What is the purpose of the statement of cost of goods manufactured?

The payment of dividends is an example of a cost.

The Darwin Company reports the following information: $\begin{array} { | l | l | } \hline \text { Sales } & \$ 76,500 \\\hline \text { Direct materials used } & 7,300 \\\hline \text { Depreciati on on factory equipment } & 4,700 \\\hline \text { Indirect labor } & 5,900 \\\hline \text { Direct labor } & 10,500 \\\hline \text { Factory rent } & 4,200 \\\hline \text { Factory utilities } & 1,200 \\\hline \text { Sales salaries expense } & 15,600 \\\hline \text { Office salaries expense } & 8,900 \\\hline \text { Indirect materials } & 1,200 \\\hline\end{array}$ Product costs are