Question 1 of 35 which of the following employees is most likely to

Question 1 of 35

Which of the following employees is most likely to only use financial accounting information?

Vice president of plant operations

Product manager

Plant manager

Bank loan officer

 

Question 2  of 35

The primary goal of managerial accounting is to provide information to

internal decision makers.

shareholders.

creditors.

both shareholders and creditors.

 

Question 3  of 35

Which statement is true?

Management uses financial information to analyze costs.

Management uses financial information to plan internal operations.

Management uses reports created for internal parties.

All of the above are true.

 

Question 4  of 35

Which of the following statements is false?

Financial accounting helps investors make decisions.

Financial accounting provides sufficient information for managers to effectively plan and control operations.

Financial accounting reports help creditors make decisions.

Financial accounting provides external reports.

 

Question 5  of 35

Which one of the following reports is most likely to require an audit by an outside entity?

Monthly financial statements

Annual financial budgets

Annual financial statements

All of the above

 

Question 6  of 35

Inventoriable product costs for a manufactured product include

the costs of direct materials, direct labor, and manufacturing overhead.

marketing and research and development costs.

the costs of direct materials and direct labor only.

none of the above.

 

Question 7  of 35

Manufacturing overhead costs for a product include

direct material.

operating expenses.

indirect manufacturing costs.

prime costs.

 

Question 8  of 35

When do inventoriable costs become expenses?

When direct materials are purchased

When the manufacturing process begins

When the manufacturing process is completed

None of the above

 

Question 9  of 35

When manufacturing products, direct labor and direct materials are classified as

period costs and expensed when incurred.

product costs and expensed when the goods are sold.

product costs and expensed when incurred.

period costs and expensed when the goods are sold.

 

Question 10  of 35

Certain materials used in a manufacturing plant cannot be traced to a specific unit. What are these materials called?

General materials

Direct materials

Indirect materials

Finished materials

 

Question 11  of 35

A ________ is used to accumulate the costs of a job.

labor time record

materials inventory requisition form

bill of materials

job cost record

 

Question 12  of 35

Which of these documents informs the storeroom to send specific materials to the factory floor?

Receiving report

Bill of materials

Purchase order

Materials requisition

 

Question 13  of 35

A ________ is a source document for tracking employee hours.

labor time record

process costing

job cost record

job costing

 

Question 14  of 35

Which of the following is a document that accumulates job costs?

Bill of materials

A job cost record

Labor time record

Production schedule

 

Question 15  of 35

In the flow of costs, which of the following comes first?

Cost of goods sold

Finished goods inventory

Work in process inventory

Raw materials inventory

 

Question 16  of 35

Which of the following is the last step of the five-step process costing procedure?

Summarize total costs to account for

Assign total costs to units completed and to units in ending WIP inventory

Compute the cost per equivalent unit

Summarize the flow of physical units

 

Question 17  of 35

Which item would appear last on a production cost report?

Cost of goods finished for the month

Total costs accounted for

Beginning WIP inventory, if any

Ending WIP inventory, if any

 

Question 18  of 35

On a production cost report, which of the following cost(s) appear?

A. Beginning work in process

B. Costs added during the period

C. Total operating costs during the period

D. Both A and B are included on a production cost report.

 

Question 19  of 35

For which of the following do you prepare calculations for equivalent units?

Both direct labor and manufacturing overhead

Both direct materials and conversion costs

Both direct labor and direct materials

Neither direct materials nor conversion costs

 

Question 20  of 35

What are the ending inventory equivalent units for materials if 15,500 units are completed and transferred out and 4,200 remain in ending WIP at 35% complete?

3,955

4,200

1,470   

5,425

 

Question 21  of 35

Which of the following is a result of cost distortion?

Overcosting of all products

Undercosting of all products

Accurate costing of all products

Overcosting of some products and undercosting of other products

 

Question 22  of 35

When calculating a departmental overhead rate, what should the numerator be?

Total estimated amount of the departmental allocation base

Total estimated departmental overhead cost pool

Total estimated amount of manufacturing overhead for the factory

Actual quantity of the departmental allocation base used by the job

 

Question 23  of 35

What will the use of departmental overhead rates generally result in?

The use of a separate cost allocation base for each department in the factory

The use of a single cost allocation base

The use of a single overhead cost pool for the factory

The use of separate cost allocation base for each activity in the factory

 

Question 24  of 35

Four basic steps are used in an ABC system. Select the correct order of these steps below:

a.Identify the primary activities and estimate a total cost pool for each.

b.Allocate the costs to the cost object using the activity cost allocation rates.

c.Select an allocation base for each activity.

d.Calculate an activity cost allocation rate for each activity.

c, a, b, d

a, c, d, b

b, a, c, d

a, d, c, b

 

Question 25  of 35

Research and development would most likely be classified as a ________ cost.

unit-level

batch-level

Facility level

Product-level

 

Question 26  of 35

With respect to variable costs per unit, which of the following statements is true?

They will decrease as production increases within the relevant range.

They will increase as production decreases within the relevant range.

They will decrease as production decreases within the relevant range.

They will remain the same as production levels change within the relevant range.

 

Question 27  of 35

Total fixed costs for Taylor Incorporated are $240,000. Total costs, including both fixed and variable, are $500,000 if 125,000 units are produced. The variable cost per unit is

$5.92/unit.

$2.08/unit.  

$4.00/unit.

$1.92/unit.

 

Question 28  of 35

Total fixed costs for Randolph Manufacturing are $752,450. Total costs, including both fixed and variable, are $1,000,000 if 150,000 units are produced. The fixed cost per unit at 186,250 units would be closest to

$1.31/unit.

$5.31/unit.

$4.00/unit.  

$5.03/unit.

 

Question 29  of 35

Total fixed costs for Green Planes Inc. are $120,000. Total costs, including both fixed and variable, are $600,000 if 150,000 units are produced. The total variable costs at a level of 220,000 units would be

$409,091.

$176,000.

$880,000.

$704,000. 

 

Question 30  of 35

Total fixed costs for Toys and Trinkets Incorporated are $88,000. Total costs, including both fixed and variable, are $155,000 if 268,000 units are produced. The total variable costs at a level of 275,000 units would be

$68,750.  

$159,049.

$90,299.

$151,055.

 

Question 31  of 35

The unit contribution margin is computed by

subtracting the variable cost per unit from the sales price per unit.

dividing the sales revenue by variable cost per unit.

dividing the variable cost per unit by the sales revenue.

subtracting the sales price per unit from the variable cost per unit.

 

Question 32  of 35

By multiplying ________ and then subtracting fixed costs, managers can quickly forecast the operating income.

projected sales units by the contribution margin ratio

projected sales revenue by the contribution margin ratio

projected sales revenue by the unit contribution margin

projected sales units by the variable cost ratio

 

Question 33  of 35

Dairy Days Ice Cream sells ice cream cones for $4 per customer. Variable costs are $3 per cone. Fixed costs are $2,500 per month. What is Dairy Days’ contribution margin per ice cream cone?

$1.00 

$3.00

$0.25

$4.00

 

Question 34  of 35

Electric Jet Skis operates a jet ski rental business. Assume the jet skis rent for $55 per 6 hours. The variable costs are $33 per six-hour rental, and its fixed costs are $80,000 each month. What is the contribution margin ratio?

40%  

60%

250%

22%

 

Question 35  of 35

LaComedia Dinner Theater sells tickets for dinner and a show for $40 each. The cost of providing dinner is $26 per ticket and the fixed cost of operating the theater is $100,000 per month. The company can accommodate 12,000 patrons each month. What is the contribution margin ratio?

65%

35% 

14%

286%