Accounting Final MC

Which of the following is not a source of information used by Management Accountants? Select one: A. Upper management B. Line employees C. Financial results of the company's operations D. All of these are sources of managerial accounting information

Just-in-time (JIT) inventory systems are designed to reduce which of the following: Select one: A. Possibility of delayed shipments B. Costs of carrying inventory C. Threat of lost sales due to unexpected demand D. All of the above

Which of the following would not be considered product costs? Select one: A. Salary of a factory supervisor B. Parts used in the production of an automobile C. Cleaning supplies for an administration building D. Wages paid to assembly line workers E. Electricity bill for a manufacturing facility

Cost of Goods Sold can be calculated in the following manner: Select one: A. Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods B. Ending Materials Inventory + Ending Work in Process + Ending Finished Goods C. Beginning Work in Process + Cost of Goods Manufactured - Ending Work in Process D. Ending Finished Goods - Beginning Finished Goods - Manufacturing Overhead

Which of the following entries correctly reflects the accumulation of Manufacturing Overhead? Select one: A. Manufacturing Overhead Cash B. Indirect Labor Manufacturing Overhead C. Manufacturing Overhead Accumulated Depreciation—Factory Equipment D. Manufacturing Overhead Materials Inventory E. A C D

Which one of the following refers to a cost that remains the same as the volume of activity decreases within the relevant range? A. Average cost per unit B. Variable cost per unit C. Unit fixed cost D. Total variable cost

The predetermined manufacturing overhead rate for a company will generally be: Select one: A. Lower than actual manufacturing overhead rates B. Based on monthly budgets C. Based on annual budgets D. Higher than actual manufacturing overhead rates

Which of the following would not appear on a job order cost sheet? Select one: A. Direct Labor costs incurred B. Direct Materials requisitioned for the job C. Overhead applied to the job D. Total cost of the job E. All of the above would appear on the job order cost sheet.

If a company uses a perpetual inventory system what journal entry would correctly record a purchase on account of materials to be used in production? Select one: A. Purchases Accounts Payable B. Materials Inventory Accounts Payable C. Work in Process Inventory Accounts Payable D. Materials Inventory Cash E. None of the above,

Which of the following is an example of a type of company that would likely prefer a process costing system? Select one: A. Home building B. Financial statement auditing C. Carpet cleaning D. Oil refining

Which of following statements are true regarding early 20th-century manufacturing companies? Select one: A. Production processes were simpler than now. B. Most companies produced only a limited variation of products in one facility. C. Materials and wages constituted the largest portions of the per-unit costs. D. Production was labor intensive. E. All of the above.

Which of the following statements regarding Activity-Based Costing is correct? Select one: A. Overhead costs are allocated based on actual costs incurred in a period. B. Direct costs (materials and labor) are accumulated in cost pools and assigned based on driver usage. C. Increases in information technology have made Activity-Based Costing less useful. D. Cost drivers and cost objects are essential parts of Activity-Based Costing. E. All of the above are correct.

Which of the following might be reasons to continue serving an unprofitable customer? Select one: A. The customer is new and requires significant support costs in the early stages of the business relationship. B. The company is trying to enter a new market or region. C. The business relationship facilitates other more profitable, business contracts. D. All of the above. E. None of the above.,

Break-even quantity is defined as the volume of output at which revenues are equal to A. marginal costs. B. total costs. C. variable costs. D. fixed costs.

What is the original metric that determines the levels of all budgets? Select one: A. Forecasted sales levels B. Planned production levels C. Approved capital expenditures D. Yearly cash flows E. None of these

What is the source of input for the Production Budget? Select one: A. Cash budget B. Direct materials budget C. Direct labor budget D. Manufacturing overhead budget E. None of the above

Which of the following budgets flows directly into the Budgeted Income Statement? Select one: A. Capital expenditures budget B. Budgeted balance sheet C. Selling and administrative budget D. Production budget E. All of the above flow directly into the Budgeted Income Statement

Which of the following are not inputs to the Cash Budget? Select one: A. Cost of goods sold from the Budgeted Income Statement B. Materials purchased and paid-for from the Direct Materials Budget C. Purchases of long-term assets from the Capital Expenditures Budget D. Rental payments from the Manufacturing Overhead Budget E. None of the above are inputs to the Cash Budget

Which of the following would not be included on the Selling and Administrative Expense Budget? Select one: A. Depreciation on office equipment B. Factory Rent C. Accounting Department salaries D. Legal Fees E. Sales Commission

The idea that a company will forego some benefit by choosing one option over another is called: Select one: A. Relevant Costs B. Sunk Costs C. Opportunity Costs D. Decision Costs E. None of the above

Which of the following are factors to consider when deciding whether to accept a special order? Select one: A. The fixed costs that will be allocated to the units produced B. Whether there is sufficient excess production capacity C. The projected salvage value of current production equipment D. Last year's budgeted level of production E. All of the above

Which of the following is not a factor to consider when deciding whether to accept a special order? Select one: A. Whether this order will hurt the brand name of the company B. Whether other potential orders would be more profitable C. Whether additional fixed costs would need to be incurred D. Whether the offered price is sufficient to cover prime costs and fixed overhead allocated E. All of the above

Which of the following are not relevant to the decision of whether to drop a business segment or not? Select one: A. Revenues of the segment B. Variable costs of goods sold of the segment C. Variable operating expenses of the segment D. Fixed overhead applied to the segment E. B and C only

Which of the following would not possibly be a constraining resource for a company? Select one: A. Machine hours B. Floor space C. Temporary labor D. Supervisor hours E. None of the above would be constraining resources

What is the correct order of the flow of product costs through the inventory system? Select one: A. Materials Inventory Work in Process, Cost of Goods Sold, Finished Goods B. Work in Process, Finished Goods, Materials Inventory, Cost of Goods Sold C. Materials Inventory, Work in Process, Finished Goods, Cost of Goods Sold D. Cost of Goods Sold, Work in Process, Materials Inventory, Finished Goods,

Which of the following types of production would most likely use job-order costing? Select one: A. Farming B. Construction of custom homes C. Manufacturing of heavy-duty machinery D. Electrical power generation E. Both B and C

When a company uses a process costing system and has more than one department which of the following types of accounts will result in multiple accounts in the general ledger? Select one: A. Finished Goods B. Work in Process C. Wages Payable D. Materials,

Management Accountants provide information that is: Select one: A. Timely B. Relevant C. Useful for making decisions D. Easily accessible to management E. All of the above

Which of the following is an example of a manufacturing firm? Select one: A. General Motors B. Starbucks C. Caleb's Carpet Cleaning Company D. Walmart

All of the following are benefits of outsourcing except: Select one: A. Companies can focus more efforts on core business activities B. Significantly faster service and higher quality of products and services C. Ability to provide services from anywhere in the world D. Not having to worry about under-utilized undertrained staff,

Which of the following is not part of Fezzari's assembly and shipping process? Select one: A. A test ride by one of the technicians B. Checking the packaging C. A test ride by the customer D. Checking all of the screws and tuning

All of the following would appear on a schedule of cost of goods manufactured except for A. ending work-in-process inventory. B. beginning finished goods inventory. C. the cost of raw materials used. D. applied manufacturing overhead.

Given the following data for Scurry Company what is the cost of goods sold? Beginning inventory of finished goods $100,000 Cost of goods manufactured 700,000 Ending inventory of finished goods 200,000 Beginning work-in-process inventory 300,000 Ending work-in-process inventory 50,000 A. $500,000 B. $600,000 C. $800,000 D. $950,000,

If production increases within a given range fixed costs per unit will: Select one: A. Increase B. Stay constant C. Decrease D. Vary depending on the source of the fixed costs E. None of the above,

Which of the following would be considered a direct cost for a unit of production? Select one: A. Depreciation on production facilities B. Salary paid to factory general supervisor C. Indirect materials used in the production process D. Wages paid to assembly line workers E. None of the above

A job order costing system does which of the following? Select one: A. Is used to determine period costs in a service company B. Is used to determine unit costs when products are manufactured in a continuous flow process C. Allocates manufacturing costs to individual jobs to determine unit costs D. Both A and B E. None of the above

If an actual monthly overhead rate were used to cost products rather than a predetermined rate based on yearly estimates which of the following would be true? Select one: A. Costs per unit would increase in months where production was greater. B. Costs per unit would increase in months where overhead costs where higher. C. Costs per unit would likely be more relevant, because they would reflect actual price fluctuations in the sources of overhead. D. Costs per unit would probably not fluctuate very much. E. A and B are both true.,

Which of the following correctly explains what should be done with any under- or over-applied overhead? Select one: A. Monthly any significant amount of under- or over-applied overhead should be closed to Cost of Goods Sold. B. At the end of a project, any insignificant under- or over-applied overhead should be closed to Work in Process prior to transferring the costs to Finished Goods. C. At year end, if there is a significant amount of under- or over-applied overhead, it should all be closed to Cost of Goods Sold. D. It is not normal for a company to have under- or over-applied overhead, because overhead is allocated based on actual costs incurred. E. At year end, if there is a significant amount of under- or over-applied overhead, it should be allocated proportionally to Work in Process, Finished Goods, and Cost of Goods sold.,

John Sheng cost accountant at Starlet Company, is developing departmental manufacturing overhead application rates for the company's tooling and fabricating departments. The budgeted overhead for each department and the data for one job are shown below. Departments Tooling Fabricating Supplies $850 $200 Supervisors' salaries 1,500 2,000 Indirect labor 1,200 4,880 Depreciation 1,000 5,500 Repairs 4,075 3,540 Total budgeted manufacturing overhead $8,625 $16,120 Total direct labor hours 460 620 Direct labor hours on Job #231 12 3 Using the departmental overhead application rates, total overhead applied to Job #231 in the Tooling and Fabricating Departments will be A. $225. B. $303. C. $537. D. $671.,

Which of the following is not an example of a type of company that would likely prefer a process costing system? Select one: A. Electricity generation B. Oil refining C. Home building D. Packaged food production

In a process costing system costs are generally accumulated by: Select one: A. Department B. Job order C. Product line D. Unit,

Which of the following is/are included in the journal entry to record the application of manufacturing overhead? Select one: A. DEBIT to Manufacturing B. DEBIT to Work in Process Inventory C. CREDIT to Wages Payable D. CREDIT to Cash E. All of the above except B.

Which of the following is/are included in the entry to record the completion of the manufacturing process? Select one: A. DEBIT to Finished Goods Inventory B. DEBIT to Work in Process Inventory C. DEBIT to Cost of Goods Sold D. CREDIT to Manufacturing Overhead E. None of the above

Activity-Based Costing is best explained by which of the following statements? Select one: A. Accumulating and allocating overhead costs based on a variety of activity drivers. B. More accurately tracking materials and labor costs for each product. C. Calculating costs sequentially by the order that they affect the production process. D. Ordering all costs alphabetically for easier cataloging in a database.

Which of the following statements most accurately describes Activity-Based Costing? Select one: A. Costs are accumulated in departments and allocated based on a single driver for each department. B. Costs are accumulated in departments and allocated based a variety of drivers for each department. C. Costs are accumulated in cost pools and allocated based on a single driver for each pool. D. Costs are accumulated in cost pools and allocated based on a variety of drivers for each pool. E. None of the above

The Chocolate Baker specializes in chocolate baked goods. The firm has long assessed the profitability of a product line by comparing revenues to the cost of goods sold. However Barry White, the firm's new accountant, wants to use an activity-based costing system that takes into consideration the cost of the delivery person. Listed below are activity and cost information relating to two of Chocolate Baker's major products. Muffins Cheesecake Revenue $53,000 $46,000 Cost of goods sold 26,000 21,000 Delivery Activity Number of deliveries 150 85 Average length of delivery 10 minutes 15 minutes Cost per hour for delivery $20.00 $20.00 Using activity-based costing, which one of the following statements is correct? A. The muffins are $2,000 more profitable. B. The cheesecakes are $75 more profitable. C. The muffins are $1,925 more profitable. D. The muffins have a higher profitability as a percentage of sales and, therefore, are more advantageous.,

Atmel Inc. manufactures and sells two products. Data with regard to these products are given below. Product A Product B Units produced and sold 30 000 12,000 Machine hours required per unit 2 3 Receiving orders per product line 50 150 Production order per product line 12 18 Production runs 8 12 Inspections 20 30 Total budgeted machine hours are 100,000. The budgeted overhead costs are shown below. Receiving costs $450,000 Engineering costs 300,000 Machine setup costs 25,000 Inspection costs 200,000 Total budgeted overhead costs $975,000 Using activity-based costing, the per unit overhead cost allocation of receiving costs for product A is A. $3.75 B. $10.75 C. $19.50 D. $28.13,

Managerial Accounting provides information which is primarily useful for: Select one: A. Determining how much a company owes to the IRS in taxes B. Setting a company's stock price on the stock exchanges C. Helping managers plan manage and make strategic decisions regarding the growth and profitability of the company D. Helping banks know whether to loan money to a company

Which of the following is an example of a manufacturing firm? Select one: A. Walmart B. Starbucks C. General Motors D. Caleb's Carpet Cleaning Company

All of the following are examples of a service firms except: Select one: A. Public accounting firms B. Lawn car companies C. Online retailers D. Professional taxi services

Just-in-time (JIT) inventory systems are designed to reduce which of the following: Select one: A. Possibility of delayed shipments B. Costs of carrying inventory C. Threat of lost sales due to unexpected demand D. All of the above

Which of the following is not part of Fezzari's assembly and shipping process? Select one: A. Checking all of the screws and tuning B. Checking the packaging C. A test ride by one of the technicians D. A test ride by the customer

Of those who begin their careers in public accounting on average, what percentage will leave to take positions in corporations or other organizations? Select one: A. 25% B. 50% C. 90% D. 75%,

Which of the following would not be considered product costs? Select one: A. Parts used in the production of an automobile B. Salary of a factory supervisor C. Wages paid to assembly line workers D. Electricity bill for a manufacturing facility E. Cleaning supplies for an administration building

Which of the following would be considered a direct cost for a unit of production? Select one: A. Depreciation on production facilities B. Salary paid to factory general supervisor C. Indirect materials used in the production process D. Wages paid to assembly line workers E. None of the above

Which of the following are not included in the Work in Process Inventory? Select one: A. Direct Materials that have been put into production B. Direct Labor incurred in production C. Manufacturing Overhead allocated to units of production D. All of the above are included in Work in Process Inventory

Which of the following is not an example of Manufacturing Overhead? Select one: A. Electricity bill for administration building B. Manufacturing equipment depreciation C. Cleaning supplies for factory floor D. Factory supervisor salary E. Production facility rent expense

Cost of Goods Sold can be calculated in the following manner: Select one: A. Ending Materials Inventory + Ending Work in Process + Ending Finished Goods B. Beginning Work in Process + Cost of Goods Manufactured - Ending Work in Process C. Ending Finished Goods - Beginning Finished Goods - Manufacturing Overhead D. Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods

Which of the following entries correctly reflects the entry for the requisition of materials (direct and indirect) for use in production? Select one: A. Work in Process Inventory Manufacturing Overhead Materials Inventory B. Materials Inventory Accounts Payable C. Materials Inventory Direct Materials Indirect Materials D. Materials Inventory Work in Process Inventory Manufacturing Overhead

Which of the following entries would a manufacturing firm record at the completion of a product for sale? Select one: A. Cost of Goods Sold Work in Process Inventory B. Finished Goods Inventory Work in Process Inventory C. Cost of Goods Sold Work in Process Inventory D. Work in Process Inventory Finished Goods Inventory

A job order costing system does which of the following? Select one: A. Is used to determine period costs in a service company B. Is used to determine unit costs when products are manufactured in a continuous flow process C. Allocates manufacturing costs to individual jobs to determine unit costs D. Both A and B E. None of the above

Which of the following types of production would most likely use job-order costing? Select one: A. Farming B. Construction of custom homes C. Manufacturing of heavy-duty machinery D. Electrical power generation E. Both B and C

When calculating the pre-determined overhead rate which of the following is typically used? Select one: A. Daily budgeted overhead B. Yearly budgeted overhead C. Yearly actual overhead incurred D. Monthly actual overhead incurred E. All of the above,

Which of the following lists the materials necessary to complete a job? Select one: A. Bill of materials B. Job order cost sheets C. Materials requisition D. Production order

Which of the following is correctly included in the entry to record the sale of finished goods? Select one: A. DEBIT to Sales Revenue B. CREDIT to Finished Goods Inventory C. CREDIT to Work in Process Inventory D. CREDIT to Cost of Goods Sold E. DEBIT to Accounts Payable

Which of the following would be the most appropriate measure of overhead allocation for a department that is highly automated? Select one: A. Direct Labor hours B. Machine hours used C. Square feet of floor space D. Direct Materials usage E. Number of employees