BAC1054 Mid semester online test

Managerial accounting information

• pertains to the entity as a whole and is highly aggregated.

• pertains to subunits of the entity and may be very detailed.

• is prepared only once a year.

• is constrained by the requirements of generally accepted accounting principles.

Management accountants would not

• assist in budget planning.

• prepare reports primarily for external users.

• determine cost behavior.

• be concerned with the impact of cost and volume on profits.

In determining whether planned goals are being met, a manager is performing the function of

• planning.

• follow-up.

• directing.

• controlling.

A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n)

• period cost.

• indirect material.

• direct material.

• miscellaneous expense.

The wages of a timekeeper in the factory would be classified as

• a period cost.

• direct labor.

• indirect labor.

• compliance costs.

Which one of the following represents a period cost?

• The VP of Sales' salary and benefits

• Overhead allocated to the manufacturing operations

• Labor costs associated with quality control

• Fringe benefits associated with factory workers

Hollern Combines, Inc. has $10,000 of ending finished goods inventory as of December 31, 2008. If beginning finished goods inventory was $5,000 and cost of goods sold was $20,000, how much would Hollern report for cost of goods manufactured?

• $22,500

• $5,000

• $25,000

• $15,000

What is work in process inventory generally described as?

• Costs applicable to units that have been started in production but are only partially completed

• Costs associated with the end stage of manufacturing that are almost always complete and ready for customers

• Costs strictly associated with direct labor

• Beginning stage production costs associated with labor costs dealing with bringing in raw materials from the shipping docks

On the costs of goods manufactured schedule, depreciation on factory equipment

• is not listed because it is included with Depreciation Expense on the income statement.

• appears in the manufacturing overhead section.

• is not listed because it is not a product cost.

• is not an inventoriable cost.

Utley Manufacturing Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $516,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Utley Manufacturing Company's cost of goods sold for the year is

• $504,000.

• $528,000.

• $476,000.

• $252,000.