Question 1

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.

Accepted Answer

A) True 
 B)False

Question 2

Williams Company reports production costs for 2015 as follows:  Williams Company's product costs for 2015 amount to:

Accepted Answer

A)   $995,000
B)   $920,000
C)   $825,000
D)   $770,000E) C) and D)
F) A) and B)

Question 3

All of the following employees hold line positions in Anthea Electric EXCEPT:

Accepted Answer

A)   vice president of production
B)   vice president of finance
C)   manager of the Valhalla Plant
D)   vice president of salesE) None of the above
F) B) and C)

Question 4

The controller's staff often consists of several management accountants. All of the following would most likely be on the controller's staff EXCEPT:

Accepted Answer

A)   general accountants
B)   budgets and budget analysts
C)   investments and shareholder relations managers
D)   cost accountantsE) A) and B)
F) B) and C)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $186,300; Factory Overhead, $187,900; and Selling Expenses, $45,290.

Accepted Answer

A)   $533,800
B)   $187,900
C)   $721,700
D)   $374,200E) A) and B)
F) B) and C)

Question 7

Product costs are not expensed until the product is sold.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Watson Company has the following data:
  Show how you would calculate the amount of Direct Materials Used.

Accepted Answer

[($25,000 - $18,000)...

Question 10

Materials must have which two qualities in order to be classified as direct materials?

Accepted Answer

A)   They must be classified as both prime costs and conversion costs.
B)   They must be introduced into the process in both work-in-process inventories and finished goods inventories.
C)   They must be an integral part of the finished product, but can be an insignificant portion of the total product cost.
D)   They must be an integral part of the finished product and be a significant portion of the total product cost.E) A) and B)
F) B) and C)

Question 11

Differentiate between financial and managerial accounting, addressing such issues as what reports are generated, when, and for whom.

Accepted Answer

The answer of Differentiate between financial and managerial accounting, addressing...

Question 12

The Sharpe Company reports the following information for 2015:  Determine product costs for 2015.

Accepted Answer

A)   $24,500
B)   $30,300
C)   $29,200
D)   $35,000E) None of the above
F) C) and D)

Question 13

Another term often used to refer to factory overhead is:

Accepted Answer

A)   surplus
B)   period cost
C)   supervisory cost
D)   factory burdenE) A) and B)
F) A) and C)

Exam 18: Managerial Accounting Concepts and Principles

Another term often used to refer to factory overhead is:

Correct Answer
verified

Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $186,300; Factory Overhead, $187,900; and Selling Expenses, $45,290.

Correct Answer
verified

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

Correct Answer
verified

The Sharpe Company reports the following information for 2015: Determine product costs for 2015.

Correct Answer
verified

Materials must have which two qualities in order to be classified as direct materials?

Correct Answer
verified

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

Correct Answer
verified

Watson Company has the following data: Show how you would calculate the amount of Direct Materials Used.

Correct Answer
verified
[($25,000 - $18,000)...
View Answer

Differentiate between financial and managerial accounting, addressing such issues as what reports are generated, when, and for whom.

Correct Answer
verified

Williams Company reports production costs for 2015 as follows: Williams Company's product costs for 2015 amount to:

Correct Answer
verified

The controller's staff often consists of several management accountants. All of the following would most likely be on the controller's staff EXCEPT:

Correct Answer
verified

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.

Correct Answer
verified

Product costs are not expensed until the product is sold.

Correct Answer
verified

All of the following employees hold line positions in Anthea Electric EXCEPT:

Correct Answer
verified

Exam 18: Managerial Accounting Concepts and Principles

Another term often used to refer to factory overhead is:

Correct AnswerverifiedShow Answer

Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $186,300; Factory Overhead, $187,900; and Selling Expenses, $45,290.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Sharpe Company reports the following information for 2015: Determine product costs for 2015.

Correct AnswerverifiedShow Answer

Materials must have which two qualities in order to be classified as direct materials?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Watson Company has the following data: Show how you would calculate the amount of Direct Materials Used.

Correct Answerverified[($25,000 - $18,000)...View AnswerShow Answer

Differentiate between financial and managerial accounting, addressing such issues as what reports are generated, when, and for whom.

Correct AnswerverifiedShow Answer

Williams Company reports production costs for 2015 as follows: Williams Company's product costs for 2015 amount to:

Correct AnswerverifiedShow Answer

The controller's staff often consists of several management accountants. All of the following would most likely be on the controller's staff EXCEPT:

Correct AnswerverifiedShow Answer

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.

Correct AnswerverifiedShow Answer

Product costs are not expensed until the product is sold.

Correct AnswerverifiedShow Answer

All of the following employees hold line positions in Anthea Electric EXCEPT:

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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Correct Answer
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Correct Answer
verified
[($25,000 - $18,000)...
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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