Managerial Account

Multiple Choice Questions 1. Which of the quest statements is true? A. The word address has the same meaning in all situations in which it is theatrical roled. B. Cost data, in one case classified and recorded for a specific application, ar take over for use in any application. C. Different bell concepts and classifications ar utilize for different purposes. D. All organizations incur the same types of bell. E. Costs incurred in one form are always meaningful in the adjacent year. 2. Which of the followers is a result greet? A. Glass in an automobile. B. Advertising. C. The payment of the vice president-finance. D. learn on a factory. E.Both A and D. 3. The discover records of Georgia Company revealed the following costs level materials utilise, $250,000 institutionalize labor movement, $425,000 manufacturing overhead, $375,000 and selling and administrative expenses, $220,000. Georgias harvest-festival costs resume A. $1,050,000. B. $830,000. C. $895,000. D . $1,270,000. E. around separate amount. 4. Costs that are expensed when incurred are called A. product costs. B. direct costs. C. inventoriable costs. D. item costs. E. indirect costs. 5. Which of the following is not a plosive speech sound cost? A. Legal costs. B. Public relations costs. C. sales commissions. D. struggle of assembly-line employmenters. E.The salary of a companys chief 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 flow costs total 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 tip costs of $420,000, excluding $35,000 of sales commissions that were overlooked by the companys administrative assistant. On the floor of this information, Yangs income statement should reveal operating expenses of A. 35,000. B. $420,000. C. $455,000. D. $567,000. E. $602,000. 8. Which of the following entities would most likely allow raw materials, work in process, and ideal goods? A. Exxon Corporation. B. Macys Department Store. C. Wendys. D. Southwest Airlines. E. capital of South Carolina University. 9. Selling and administrative expenses would likely appear on the symmetricalness canvass of A. The Gap. B. Texas Instruments. C. Turner Broadcasting 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. home(a) leather. D. CD player. E. Sheet metal used in the automobiles body. 11. Which of the following employees of a commercial printer/publisher would be classified as direct labor? A. Book binder. B. Plant security 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 plosive 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. disparagement of factory equipment would be classified as A. operating cost. B. new(prenominal) cost. C. manufacturing overhead. D. period cost. E. administrative cost. 14. Which of the following costs is not a portion of manufacturing overhead? A. Indirect materials. B. Factory utilities. C. Factory equipment. D. Indirect labor. E. Property taxes on the manufacturing plant. 15. The accounting records of Diego Company revealed the following costs, among othersCosts that would be considered in the tally 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. intersect ion point costs propel only the balance sheet. B. Product costs imply only the income statement. C. Period costs affect only the balance sheet. D. uncomplete product costs nor period costs affect the Statement of retain Earnings. This can also be a true statement if the period costs were prepaid (i. e. , prepaid advertising, disparagement). 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. line finished goods size up. 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 interchange during the period? A. Beginning finished goods + cost of goods grant + ending finished goods. B. Beginning finished goods ending finished goods. C. Beginning finished goods + cost of goods manufactured. D. Beginning fini shed 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 change 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 reported a cost of goods manufactured of $520,000, with the firms year-end balance sheet revealing work in process and finished goods of $70,000 and $134,000, individually.If supplemental information disclosed raw materials used in production 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 Company 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 interchange is A. $721,000. B. $730,000.C. $778,000. D. $787,000. E. some other amount. 23. For the year just finish, 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. about 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 valuation reserve would be A. $940,000. B. $1,190,000. C. $1,020,000. D. $380,000. E. $770,000. 25. Variable costs are costs that A. vary in return with changes in application. B. vary directly with changes in activity. C. remain constant as activity changes. D. decrease on a per- social unit basis as activity increases.E. increase on a per-unit basis as activity increases. 26. Which of the following is not an example of a multivariate cost? A. Straight-line depreciation on a apparatus that has a five-year service life. B. Wages of manufacturing workers whose pay is establish 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 persistent costs per unit are $10 when a company produces 10,000 units of product. What are the fixed 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. organic 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 stop full time is a(n) A. sunk cost. B. out-of-pocket cost. C. opportunity cost. D. differential cost. E. marginal cost. Essay Questions 1. Consider the three firms that follow (1) Southwest Airlines, (2) BMW, and (3) Target. These firms, examples of service providers, manufacturers, and merchandisers, melt down to have different characteristics with respect to costs and financial-statement disclosures. Required Determine which of the antecede firms (1, 2, and/or 3) would likely A. Disclose operating expenses on the income statement.B. Have 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. honor 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 rug manufacturer. 5. The cost of products sold to customers of an apparel store. . Wages earned by ma chine operators 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. esteem the costs just cited and determine whether the associated dollar amounts would appear on the firms balance sheet, income statement, or schedule of cost of goods manufactured. B. What major asset will usually be insignificant for service enterprises and relatively substantial for retail merchants, wholesalers, and manufacturers? Briefly discuss. C.Briefly pardon the similarity and difference 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 game club E . Commissions paid to Coca-Colas salespeople F. Straight-line depreciation on manufacturing equipment owned by dingle Computer G. Shipping 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 Complete 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 operation of her automobile, a doctor once observed that gun 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. Comment on the doctors observation.