1 of35 Which of the following are the internal decision makers of a company Vendors Managers Shareholders Customers Question 2 of35 Which of following statements is true Managerial accounting focuses on historical transactions Financial accounting focuses on future data Management accounting focuses on relevant data Managerial accounting uses the cash basis for recording transactions Question 3 of35 The focus of management accounting is on tax preparation external reporting internal reporting auditing Question 4 of35 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 of35 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 6 of35 Inventoriable product costs for a product are described by which of the following A Inventoriable product costs are narrower in scope than total costs B Inventoriable product costs include all costs of the value chain C Inventoriable product costs consist of direct materials, direct labor, and manufacturing overhead D Both A and C are correct Question 7 of35 Inventoriable product costs are best described by which of the following statements A They are expensed on the income statement when incurred B They include marketing and distribution costs C They are used for external reporting purposes D Both A and C are correct Question 8 of35 Which of the following is an example of a period cost when manufacturing products Depreciation expense on factory equipment Advertising expense Indirect materials used in the factory Property taxes on the plant Question 9 of35 Manufacturing overhead costs for a product include direct material operating expenses indirect manufacturing costs prime costs Question 10 of35 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 11 of35 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 of35 The substantiates the balance of the raw materials inventory account shown on the company's balance sheet bill of materials raw materials records materials requisition labor time record Question 13 of35 Which of the following is a document that accumulates job costs Bill of materials A job cost record Labor time record Production schedule Question 14 of35 An internal request for raw materials calls for a to be completed materials requisition bill of materials purchase order labor time record Question 15 of35 In the flow of costs, which of the following comes second Cost of goods sold Finished goods inventory Work in process inventory Raw materials inventory Question 16 of35 The five steps of the process costing procedure are scrambled below Which of the following places the steps in the correct order Assign total costs to units completed and to units in ending WIP inventory Summarize total costs to account for Compute the cost per equivalent unit Summarize the flow of physical units Compute output in terms of equivalent units The correct order for these steps is 3, 1, 4, 2, 5 5, 3, 1, 4, 2 2, 4, 5, 1, 3 4, 5, 2, 3, 1 Question 17 of35 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 18 of35 The five steps of the process costing procedure are scrambled below Which of the following places the steps in the correct order Assign total costs to units completed and to units in ending WIP inventory Summarize total costs to account for Compute the cost per equivalent unit Summarize the flow of physical units Compute output in terms of equivalent units 3, 1, 4, 2, 5 5, 3, 1, 4, 2 2, 4, 5, 1, 3 4, 5, 2, 3, 1 Question 19 of35 In a department, 26,000 units are completed and transferred out, and 7,400 remain in ending WIP at 65 complete If an equivalent unit costs $9 00 for direct materials, what is the value of materials transferred out $43,290 $167,400 $66,600 $234,000 Question 20 of35 In Step 1 of the process costing procedure, the total units accounted for is the sum of the units completed and transferred out plus the units in ending WIP the units in ending WIP plus the units started in production during the month the units in beginning WIP plus the units in ending WIP the units in beginning WIP plus the units completed and transferred out Question 21 of35 Machine set up would most likely be classified as a cost batch level unit level product level facility level Question 22 of35 Molding and sanding each unit of a product would most likely be classified as a cost unit level batch level product level facility level Question 23 of35 Four basic steps are used in an ABC system Select the correct order of these steps below Identify the primary activities and estimate a total cost pool for each Allocate the costs to the cost object using the activity cost allocation rates Select an allocation base for each activity 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 24 of35 Using factory utilities would most likely be classified as a cost unit level batch level facility level product level Question 25 of35 When a company has established separate manufacturing overhead rates for each department, it is using departmental overhead rates cost distortion a plantwide overhead rate none of the above Question 26 of35 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 27 of35 Variable costs are described by which of the following statements They vary per unit of output They are fixed in total They are fixed per unit and vary in total They decrease per unit as production volume increases Question 28 of35 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 29 of35 Total fixed costs for Randolph Manufacturing are $754,000 Total costs, including both fixed and variable, are $1,000,000 if 150,000 units are produced The variable cost per unit is $6 67 unit $5 03 unit $11 69 unit $1 64 unit Question 30 of35 Which of the following is a fixed cost Direct materials cost Direct labor cost Straight line depreciation expense Sales commissions expense Question 31 of35 Contribution margin ratio is computed by dividing contribution margin by operating income dividing contribution margin by sales revenue dividing sales revenue by contribution margin dividing operating income by contribution margin Question 32 of35 Which of the following represents the excess of the selling price per unit of a product over the variable cost of obtaining and selling each unit Gross margin Operating income Net income Unit contribution margin Question 33 of35 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 34 of35 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 of35 Mom and Pop's Ice Cream Shoppe sells ice cream cones for $5per customer Variable costs are $2 25 per cone Fixed costs are $3,000 per month What is the company's contribution margin per ice cream cone $2 25 $2 75 $0 55 $1 82

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1 of35 Which of the following are the internal decision makers of a company? Vendors Managers Shareholders Customers Question 2 of35 Which of following statements

1 of35

Which of the following are the internal decision makers of a company?

Vendors

Managers

Shareholders

Customers

Question

2 of35

Which of following statements istrue?

Managerial accounting focuses on historical transactions.

Financial accounting focuses on future data.

Management accounting focuses on relevant data.

Managerial accounting uses the cash basis for recording transactions.

Question

3 of35

The focus of management accounting is on

tax preparation.

external reporting.

internal reporting.

auditing.

Question

4 of35

Which of the following statements isfalse?

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 of35

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

6 of35

Inventoriable product costs for a product are described by which of the following?

A. Inventoriable product costs are narrower in scope than total costs.

B. Inventoriable product costs include all costs of the value chain.

C. Inventoriable product costs consist of direct materials, direct labor, and manufacturing overhead.

D. Both A and C are correct.

Question

7 of35

Inventoriable product costs are best described by which of the following statements?

A. They are expensed on the income statement when incurred.

B. They include marketing and distribution costs.

C. They are used for external reporting purposes.

D. Both A and C are correct.

Question

8 of35

Which of the following is an example of a period cost when manufacturing products?

Depreciation expense on factory equipment

Advertising expense

Indirect materials used in the factory

Property taxes on the plant

Question

9 of35

Manufacturing overhead costs for a product include

direct material.

operating expenses.

indirect manufacturing costs.

prime costs.

Question

10 of35

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

11 of35

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 of35

The ________ substantiates the balance of the raw materials inventory account shown on the company's balance sheet.

bill of materials

raw materials records

materials requisition

labor time record

Question

13 of35

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

Bill of materials

A job cost record

Labor time record

Production schedule

Question

14 of35

An internal request for raw materials calls for a ________ to be completed.

materials requisition

bill of materials

purchase order

labor time record

Question

15 of35

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

Cost of goods sold

Finished goods inventory

Work in process inventory

Raw materials inventory

Question

16 of35

The five steps of the process costing procedure are scrambled below. Which of the following places the steps in the correct order?

Assign total costs to units completed and to units in ending WIP inventory.
Summarize total costs to account for.
Compute the cost per equivalent unit.
Summarize the flow of physical units.
Compute output in terms of equivalent units.

The correct order for these steps is:

3, 1, 4, 2, 5.

5, 3, 1, 4, 2.

2, 4, 5, 1, 3.

4, 5, 2, 3, 1.

Question

17 of35

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

18 of35

The five steps of the process costing procedure are scrambled below. Which of the following places the steps in the correct order?

Assign total costs to units completed and to units in ending WIP inventory.
Summarize total costs to account for.
Compute the cost per equivalent unit.
Summarize the flow of physical units.
Compute output in terms of equivalent units.

3, 1, 4, 2, 5.

5, 3, 1, 4, 2.

2, 4, 5, 1, 3.

4, 5, 2, 3, 1.

Question

19 of35

In a department, 26,000 units are completed and transferred out, and 7,400 remain in ending WIP at 65% complete. If an equivalent unit costs $9.00 for direct materials, what is the value of materials transferred out?

$43,290

$167,400

$66,600

$234,000

Question

20 of35

In Step 1 of the process costing procedure, the "total units accounted for" is the sum of

the units completed and transferred out plus the units in ending WIP.

the units in ending WIP plus the units started in production during the month.

the units in beginning WIP plus the units in ending WIP.

the units in beginning WIP plus the units completed and transferred out.

Question

21 of35

Machine set-up would most likely be classified as a ________ cost.

batch-level

unit-level

product-level

facility-level

Question

22 of35

Molding and sanding each unit of a product would most likely be classified as a ________ cost.

unit-level

batch-level

product-level

facility-level

Question

23 of35

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

Identify the primary activities and estimate a total cost pool for each.
Allocate the costs to the cost object using the activity cost allocation rates.
Select an allocation base for each activity.
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

24 of35

Using factory utilities would most likely be classified as a ________ cost.

unit-level

batch-level

facility-level

product-level

Question

25 of35

When a company has established separate manufacturing overhead rates for each department, it is using

departmental overhead rates.

cost distortion.

a plantwide overhead rate.

none of the above.

Question

26 of35

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

27 of35

Variable costs are described by which of the following statements?

They vary per unit of output.

They are fixed in total.

They are fixed per unit and vary in total.

They decrease per unit as production volume increases.

Question

28 of35

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

29 of35

Total fixed costs for Randolph Manufacturing are $754,000. Total costs, including both fixed and variable, are $1,000,000 if 150,000 units are produced. The variable cost per unit is

$6.67/unit.

$5.03/unit.

$11.69/unit.

$1.64/unit.

Question

30 of35

Which of the following is a fixed cost?

Direct materials cost

Direct labor cost

Straight-line depreciation expense

Sales commissions expense

Question

31 of35

Contribution margin ratio is computed by

dividing contribution margin by operating income.

dividing contribution margin by sales revenue.

dividing sales revenue by contribution margin.

dividing operating income by contribution margin.

Question

32 of35

Which of the following represents the excess of the selling price per unit of a product over the variable cost of obtaining and selling each unit?

Gross margin

Operating income

Net income

Unit contribution margin

Question

33 of35

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

34 of35

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 of35

Mom and Pop's Ice Cream Shoppe sells ice cream cones for $5per customer. Variable costs are $2.25 per cone. Fixed costs are $3,000 per month. What is the company's contribution margin per ice cream cone?

$2.25

$2.75

$0.55

$1.82