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rea. Each store al manager who cal store, the store A large retail chain has 12 stores in one geographic area. Fa has a manager and the geographic region has a general mana has responsibility for all 12 stores. For an individual store, the manager's salary would be considered a(n): a. indirect cost b. period cost c. product cost d. direct cost The president's salary is what type of cost to the firm? a. administrative cost b. product cost c. selling cost d. inventory cost Which cost is not included as a necessary cost to complete the manufacture of a unit? a. direct materials costs b. direct labor costs C. administrative costs d. manufacturing overhead costs Any cost associated with the operation of a manufacturing facility that is not direct labor or direct materials is considered: a. manufacturing overhead b. administrative cost C. finished goods inventory d. merchandise inventory Goods purchased but which have not yet entered into the production process are known as: a. merchandise inventory b. raw materials inventory C. work-in-process inventory d. finished goods inventory 10. Products that have entered the production process but have not yet been completed are known as: a. raw materials inventory b. work-in-process inventory C. finished goods inventory d. manufacturing overhead 11. Clockworks is a company that manufactures grandfather clocks. Fully assembled grandfather clocks represent: a. finished goods b. work-in-process c. indirect materials d. raw materials The cost of a plant janitor is a(n): a. direct labor cost b. administrative cost c. indirect labor cost d. sales salary cost 13. When direct materials are started into the production process, the cost of the materials flow into the: a. Finished Goods account b. Overhead account C. Work-in-Process account d. Supplies account 14. _and the cost of Finished goods inventory appears on the goods sold appears on the a. balance sheet; balance sheet b. balance sheet; income statement C. income statement; income statement d. income statement; balance sheet 15. The formula used to determine the manufacturing costs for the curre period is: a. direct materials used + direct labor + manufacturing overhead b. direct materials used - direct labor + manufacturing overhead C. direct materials used + direct labor - manufacturing overhead d. direct materials used-direct labor - manufacturing overhead Bad Apple, Inc., uses direct labor hours to allocate overhead costs. If Bad Apple estimates $40.000 of overhead and 50,000 hours of direct labor this period, the overhead applied when 4500 direct labor hours are used should be: a. $3,520 b. $3,600 C. $4,400 d. $5,500 17. When a manufacturer wants to accumulate the cost of custom-made goods, the most appropriate method to use is: a. variable costing b. process costing c. absorption costing d. job order costing 18. When the firm produces units that are identical, it should use which product costing system? a. job order costing b. process costing c. absorption costing d. direct costing 19. In a job order costing system the term "job" refers to a : a. single unit b. batch of units C. process d. Answers a and b are both correct. 20. When the overhead rate is determined on an annual basis before the period production actually begins, the rate calculated is referred to as a(n): a. None of these answers is correct b. Actual overhead rate C. Estimated overhead cost rate d. Predetermined overhead rate 21. The cost system that smoothes out the fluctuations in product cost due to monthly differences in manufacturing overhead cost and the allocation base is the: a. actual cost system b. job cost sheet C. normal cost system d. universal cost tracking system 22. In process costing, the number of units that would have been completed if all production efforts resulted in completed units is known as: a. equivalent units b. completed units C. universal cost tracking units d. work-in-process units 23. Label the characteristics as belonging to management accounting (M) or financial accounting (F). Decision makers use information to plan the future direction of the company. Focuses on estimating future revenues and costs to forecast future activities and their results. Generally presents a historical perspective Information deals with the details of a company's various parts or segments Principal users of information are stockholders and creditors Reports have a standard format mandated by GAAP. Users require detailed information by division or department Information is available through quarterly and annual reports only Sometimes values timeliness of information over accuracy Users can request that information be presented in different formats