WorksheetsFinals_Financial Controllership
Total questions: 50
Worksheet time: 17mins
Which of the following is NOT a component of manufacturing costs?
Direct Materials
Direct Labor
Manufacturing Overhead
Administrative Salaries
Direct materials can best be described as:
Supplies not directly traceable to the product
Raw materials easily traced to the finished product
Salaries of factory supervisors
Finished goods inventory
Which cost would be classified as indirect labor?
Assembly line workers’ wages
Salaries of machine operators
Factory supervisor’s salary
Material costs used in production
What is typically included in manufacturing overhead?
Raw materials used
Sales commissions
Factory utilities
Direct labor wages
Which of the following is a period cost?
Depreciation of factory equipment
Indirect labor
Direct materials
Office rent
Conversion costs include which of the following?
Direct materials and overhead
Direct labor and overhead
Direct materials and direct labor
Only manufacturing overhead
Which cost classification changes behavior with activity level?
Sunk cost
Fixed cost
Variable cost
Opportunity cost
If a cost remains constant per unit but varies in total, it is a:
Fixed cost
Variable cost
Mixed cost
Step cost
A sunk cost is:
Relevant to future decisions
A historical cost that cannot be recovered
Avoidable with alternative actions
A direct cost
Which cost is always relevant to decision-making?
Sunk cost
Opportunity cost
Historical cost
Allocated cost
Which of the following is NOT included in product costs under absorption costing?
Direct labor
Selling expenses
Direct materials
Manufacturing overhead
Non-manufacturing costs include all EXCEPT:
Marketing costs
Administrative salaries
Product packaging before shipment
Maintenance of production machinery
The cost of idle time is classified as:
Direct labor
Direct materials
Manufacturing overhead
Period cost
Which term describes cost incurred to acquire or produce goods?
Period cost
Product cost
Variable cost
Opportunity cost
What is the best example of a fixed cost?
Factory electricity
Direct materials
Machine depreciation
Shipping fees
Cost behavior analysis helps in:
Tax computation
Budgeting and forecasting
Determining net income
Legal compliance
A mixed cost:
Changes per unit
Includes both fixed and variable components
Cannot be allocated
Is always irrelevant
The cost of goods manufactured includes:
Cost of ending raw materials
Selling expenses
Beginning work in progress
Taxes
The cost of goods sold is calculated after adjusting for:
Net sales
Administrative expenses
Ending finished goods inventory
Selling costs
What is the formula for cost of goods manufactured (COGM)?
Direct labor + Direct materials
Total manufacturing costs + Ending WIP inventory
Beginning WIP + Total manufacturing costs - Ending WIP
Beginning inventory - Purchases + Ending inventory
In cost classification, administrative salaries are categorized as:
Product cost
Manufacturing cost
Period cost
Direct labor
The wages of janitorial staff in the factory are considered:
Direct labor
Manufacturing overhead
Selling expense
Administrative expense
Prime cost includes:
Direct labor and manufacturing overhead
Direct materials and direct labor
Indirect materials and labor
Administrative and selling expenses
Which of the following is NOT a variable cost?
Direct materials
Sales commissions
Factory rent
Packaging costs per unit
When calculating net income, which cost is excluded?
Direct labor
Administrative salaries
Depreciation of office equipment
Raw materials purchased
What distinguishes period costs from product costs?
Period costs are only incurred during production
Product costs are expensed immediately
Period costs are not included in inventory valuation
Product costs include office utilities
Which best defines opportunity cost?
Cash outlay required for a decision
Historical cost of resources
Benefit foregone from the next best alternative
Cost not affecting accounting records
A company classifies its shipping expenses to customers as:
Product cost
Administrative cost
Manufacturing overhead
Selling expense
What is the impact of treating a fixed manufacturing cost as a period cost?
It inflates profit
It decreases profit
No impact on profit
It is capitalized in inventory
What distinguishes manufacturing overhead from direct costs?
Manufacturing overhead is traceable to units
It includes direct labor
It cannot be directly traced to a specific product
It includes selling and distribution costs
A company uses $10,000 in raw materials and $5,000 in direct labor. If manufacturing overhead is $3,000, what is the total manufacturing cost?
$18,005
$18,004
$18,000
$18,002
$18,001
If beginning raw materials inventory is $2,000, purchases are $8,000, and ending inventory is $3,000, what is the raw materials used?
$7,005
$7,004
$7,000
$7,002
$7,001
Direct labor costs $12,000 and manufacturing overhead is $6,000. What are the conversion costs?
$18,005
$18,004
$18,000
$18,002
$18,001
Direct materials are $15,000 and direct labor is $10,000. What are the prime costs?
$25,005
$25,004
$25,000
$25,002
$25,001
Beginning WIP is $4,000, total manufacturing costs are $30,000, and ending WIP is $6,000. What is the cost of goods manufactured?
$28,005
$28,004
$28,000
$28,002
$28,001
If cost of goods manufactured is $50,000, beginning finished goods inventory is $10,000, and ending inventory is $15,000, what is the cost of goods sold?
$45,005
$45,004
$45,000
$45,002
$45,001
Sales are $100,000 and cost of goods sold is $60,000. What is the gross profit?
$40,005
$40,004
$40,000
$40,002
$40,001
If fixed costs are $20,000 and the company produces 10,000 units, what is the fixed cost per unit?
$5
$4
$2
$0
$1
A factory incurs $5,000 in indirect labor and $2,000 in factory utilities. What is the total manufacturing overhead?
$7,005
$7,004
$7,000
$7,002
$7,001
If a product sells for $50 and the variable cost per unit is $30, what is the contribution margin per unit?
$15
$16
$20
$18
$19
If sales are $80,000, variable costs are $50,000, and fixed costs are $20,000, what is the net income?
$10,005
$10,004
$10,000
$10,002
$10,001
The beginning inventory is $12,000, purchases are $30,000, and ending inventory is $10,000. What is the cost of goods available for sale?
$42,005
$42,004
$42,000
$42,002
$42,001
If a product’s total cost is $40 and the selling price is $60, what is the profit per unit?
$15
$16
$20
$18
$19
The company has 1,000 units in inventory, each costing $25. What is the total inventory value?
$25,005
$25,004
$25,000
$25,002
$25,001
A firm paid $6,000 in administrative salaries and $3,000 in marketing. What are the total period costs?
$9,005
$9,004
$9,000
$9,002
$9,001
If a factory produces 2,000 units with total fixed costs of $10,000, and 2,500 units next month, what happens to fixed cost per unit?
Decreases
Increases
Sustain
Stagnant
Stable
If manufacturing overhead is $12,000 and direct labor hours are 4,000, what is the overhead rate per hour?
$5
$4
$3
$1
$2
A company’s direct materials are $20,000 and factory rent is $5,000. What portion is product cost?
$25,005
$25,004
$25,000
$25,002
$25,001
If beginning inventory is $5,000 and cost of goods sold is $25,000, what is the ending inventory if purchases were $30,000?
$10,005
$10,004
$10,000
$10,002
$10,001
If 500 units are sold at $40 each, and the cost per unit is $25, what is the total profit?
$7,495
$7,496
$7,500
$7,498
