Managerial Account

octuple Choice Questions 1. Which of the followers statements is true? A. The word greet has the same heart and soul in all situations in which it is utilize. B. Cost data, once classified and enter for a specific application, are appropriate for use in both application. C. Different address concepts and classifications are used for different purposes. D. alone organizations obtain the same types of appeal. E. Costs incurred in one year are ceaselessly meaningful in the following year. 2. Which of the following is a carrefour cost? A. Glass in an automobile. B. Advertising. C. The payment of the vice president-finance. D. Rent on a mill. E.Both A and D. 3. The invoice records of Georgia party detected the following be deport materials used, $250,000 direct labor, $425,000 manufacturing overhead, $375,000 and selling and administrative expenses, $220,000. Georgias product costs integral A. $1,050,000. B. $830,000. C. $895,000. D. $1,270,000. E. whatever some o therwise amount. 4. Costs that are expensed when incurred are called A. product costs. B. direct costs. C. inventoriable costs. D. catamenia costs. E. indirect costs. 5. Which of the following is not a point in time cost? A. heavy costs. B. Public relations costs. C. gross revenue instructions. D. Wages of assembly-line trifleers. E.The salary of a companys head teacher financial officer (CFO). 6. The accounting records of Reynolds Corporation revealed the following selected costs Sales commissions, $65,000 plant supervision, $190,000 and administrative expenses, $185,000. Reynoldss period costs number A. $250,000. B. $440,000. C. $375,000. D. $255,000. E. $185,000. 7. Yang Corporation recently computed total product costs of $567,000 and total period costs of $420,000, excluding $35,000 of gross revenue commissions that were overlooked by the companys administrative assistant. On the basis of this information, Yangs income statement should reveal operating expenses of A. 3 5,000. B. $420,000. C. $455,000. D. $567,000. E. $602,000. 8. Which of the following entities would most presumable have raw materials, work in edge, and accurate goods? A. Exxon Corporation. B. Macys Department Store. C. W residuumys. D. Southwest Airlines. E. Columbia University. 9. Selling and administrative expenses would likely appear on the counterbalance sheet of A. The Gap. B. Texas Instruments. C. Turner air System. D. All of these firms. E. None of these firms. 10. Mideast Motors manufactures automobiles. Which of the following would not be classified as direct materials by the company?A. Wheel lubricant. B. Tires. C. Interior leather. D. CD player. E. tatter metal used in the automobiles body. 11. Which of the following employees of a commercial printing implement/publisher would be classified as direct labor? A. word of honor binder. B. Plant earnest guard. C. Sales representative. D. Plant supervisor. E. Payroll supervisor. 12. Lake Appliance produces washers and dryers in an assembly-line process. Labor costs incurred during a recent period were corporate executives, $500,000 assembly-line workers, $180,000 security guards, $45,000 and plant supervisor, $110,000.The total of Lakes direct labor cost was A. $110,000. B. $180,000. C. $155,000. D. $235,000. E. $735,000. 13. Depreciation of factory equipment would be classified as A. operating cost. B. other cost. C. manufacturing overhead. D. period cost. E. administrative cost. 14. Which of the following costs is not a component of manufacturing overhead? A. corroborative materials. B. Factory utilities. C. Factory equipment. D. Indirect labor. E. Property taxes on the manufacturing plant. 15. The accounting records of Diego fellowship revealed the following costs, among othersCosts that would be considered in the calculation of manufacturing overhead total A. $149,000. B. $171,000. C. $186,000. D. $442,000. E. some other amount. 16. Which of the following statements is true? A. Product costs strike only the balance sheet. B. Product costs affect only the income statement. C. extremity costs affect only the balance sheet. D. Neither product costs nor period costs affect the Statement of Retained Earnings. This can besides be a true statement if the period costs were pre remunerative (i. e. , pre paying(a) advertising, depreciation). E. Product costs eventually affect both the balance sheet and the income statement. 17.In a manufacturing company, the cost of goods completed during the period would include which of the following elements? A. Raw materials used. B. blood line ruined goods inventory. C. Marketing costs. D. Depreciation of delivery trucks. E. All of the above. 18. Which of the following equations is used to calculate cost of goods exchange during the period? A. stem done for(p) goods + cost of goods manufactured + finishing finished goods. B. Beginning finished goods expiration finished goods. C. Beginning finished goods + cost of goods manufa ctured. D. Beginning finished goods + cost of goods manufactured ending finished goods.E. Beginning finished goods + ending finished goods cost of goods manufactured. 19. Holden Industries began July with a finished-goods inventory of $48,000. The finished-goods inventory at the end of July was $56,000 and the cost of goods sold during the month was $125,000. The cost of goods manufactured during July was A. $104,000. B. $125,000. C. $117,000. D. $133,000. E. some other amount. 20. Carolina Plating Company report a cost of goods manufactured of $520,000, with the firms closing balance sheet revealing work in process and finished goods of $70,000 and $134,000, respectively.If supplemental information disclosed raw materials used in take of $80,000, direct labor of $140,000, and manufacturing overhead of $240,000, the companys beginning work in process must have been A. $130,000. B. $10,000. C. $66,000. D. $390,000. E. some other amount. 21. The accounting records of Bronco Compan y revealed the following information Broncos cost of goods manufactured is A. $519,000. B. $522,000. C. $568,000. D. $571,000. E. some other amount. 22. The accounting records of Brownwood Company revealed the following information Brownwoods cost of goods sold is A. $721,000. B. $730,000.C. $778,000. D. $787,000. E. some other amount. 23. For the year sound ended, Cole Corporations manufacturing costs (raw materials used, direct labor, and manufacturing overhead) totaled $1,500,000. Beginning and ending work-in-process inventories were $60,000 and $90,000, respectively. Coles balance sheet also revealed respective beginning and ending finished-goods inventories of $250,000 and $180,000. On the basis of this information, how much would the company report as cost of goods manufactured (CGM) and cost of goods sold (CGS)? A. CGM, $1,430,000 CGS, $1,460,000. B. CGM, $1,470,000 CGS, $1,540,000. C.CGM, $1,530,000 CGS, $1,460,000. D. CGM, $1,570,000 CGS, $1,540,000. E. Some other amounts. 24. Glass Industries reported the following data for the year just ended sales revenue, $1,750,000 cost of goods sold, $980,000 cost of goods manufactured, $560,000 and selling and administrative expenses, $170,000. Glass gross margin would be A. $940,000. B. $1,190,000. C. $1,020,000. D. $380,000. E. $770,000. 25. shifting costs are costs that A. transfigure inversely with changes in activity. B. vary directly with changes in activity. C. remain constant as activity changes. D. come down on a per-unit basis as activity increases.E. increase on a per-unit basis as activity increases. 26. Which of the following is not an drill of a protean cost? A. Straight-line depreciation on a machine that has a five-year service life. B. Wages of manufacturing workers whose pay is based on hours worked. C. Tires used in the production of tractors. D. Aluminum used to make patio furniture. E. Commissions paid to sales personnel. 27. The obdurate costs per unit are $10 when a company produce s 10,000 units of product. What are the dictated costs per unit when 8,000 units are produced? A. $12. 50. B. $10. 00. C. $8. 00. D. $6. 50. E. $5. 50. 28.Total costs are $180,000 when 10,000 units are produced of this amount, variable costs are $64,000. What are the total costs when 13,000 units are produced? A. $199,200. B. $214,800. C. $234,000. D. Some other amount. E. Total costs cannot be calculated based on the information presented. 29. Baxter Company, which pays a 10% commission to its salespeople, reported sales revenues of $210,000 for the period just ended. If fixed and variable sales expenses totaled $56,000, what would these expenses total at sales of $168,000? A. $16,800. B. $35,000. C. $44,800. D. $51,800. E. Some other amount. 30.The salary that is sacrificed by a college student who pursues a degree full fourth dimension is a(n) A. sunk cost. B. out-of-pocket cost. C. opportunity cost. D. differential cost. E. marginal cost. Essay Questions 1. take up the three firms that follow (1) Southwest Airlines, (2) BMW, and (3) Target. These firms, examples of service providers, manufacturers, and merchandisers, tend to have different characteristics with respect to costs and financial-statement disclosures. Required Determine which of the preceding firms (1, 2, and/or 3) would likely A. Disclose operating expenses on the income statement.B. occupy product costs. C. Have period costs. D. Disclose cost of cost good sold on the income statement. E. Have no meaningful investment in inventory. F. Maintain raw-material, work-in-process, and finished-goods inventories. G. Have variable and fixed costs. 2. Consider the following cost items 1. Sales commissions earned by a companys sales force. 2. Raw materials purchased during the period. 3. Current years depreciation on a firms manufacturing facilities. 4. Year-end completed production of a carpet manufacturer. 5. The cost of products sold to customers of an apparel store. . Wages earned by machine oper ators in a manufacturing plant. 7. Income taxes incurred by an airline. 8. Marketing costs of an electronics manufacturer. 9. Indirect labor costs incurred by a manufacturer of office equipment. Required A. Evaluate the costs just cited and determine whether the associated dollar amounts would appear on the firms balance sheet, income statement, or document of cost of goods manufactured. B. What major asset will normally be insignificant for service enterprises and relatively substantial for retailers, wholesalers, and manufacturers? Briefly discuss. C.Briefly explain the similarity and unlikeness between the merchandise inventory of a retailer and the finished-goods inventory of a manufacturer. 3. Consider the following items A. Tomatoes used in the manufacture of Hunts ketchup B. administrative salaries of executives employed by Jet Blue Airlines C. Wages of assembly-line workers at a Ford plant D. Marketing expenditures of the Atlanta Braves baseball club E. Commissions paid t o Coca-Colas salespeople F. Straight-line depreciation on manufacturing equipment owned by Dell Computer G. transfer charges incurred by Office Depot on out-going orders H.Speakers used in Sony home-theater systems I. insurance costs related to a Mary Kay Cosmetics manufacturing plant Required effect the table that follows and classify each of the costs listed as (1) a product or period cost and (2) a variable or fixed cost by placing an X in the appropriate column. 4. In discussing the military operation of her automobile, a doctor once observed that gasoline is a fixed cost because the cost per gallon is relatively stable. Insurance, on the other hand, is a variable cost because the cost per mile varies inversely with the number of miles driven. gabfest on the doctors observation.