Final exam all multiple choice questions chp 12-15

Cost accounting systems used by manufacturing companies are based on the:

A system of accounting for manufacturing operations that produces timely information about inventories and manufacturing costs per unit of product is a:

Job order costing systems normally use:

In comparison to a general accounting system for a manufacturing company, a cost accounting system places an emphasis on:

The production activities for a customized product represent a(n):

A job order cost accounting system would best fit the needs of a company that makes:

A type of manufacturing that produces customized products or services for each customer is called:

Job order manufacturing is also known as:

Dell Builders manufactures each house to customer specifications. It most likely would use:

A job order manufacturing system would be appropriate for a company that produces which one of the following items?

Large aircraft manufacturers such as McDonnell Douglas normally use:

A document in a job order cost accounting system that is used to record the costs of producing a job is a(n):

A job cost sheet shows information about each of the following items except:

A job cost sheet includes:

A perpetual record of a raw materials item that records data on the quantity and cost of units purchased, units issued for use in production, and units that remain in the raw materials inventory is called a(n):

A source document that production managers use to request materials for manufacturing and that is used to assign materials costs to specific jobs or to overhead is a:

A source document that an employee uses to record the number of hours at work and that is used to determine the total labor cost for each pay period is a:

A source document that an employee uses to report how much time was spent working on a job or on overhead activities and that is used to determine the amount of direct labor to charge to the job or to determine the amount of indirect labor to charge to factory overhead is called a:

When raw materials are used in production and are recorded in a job cost system:

When factory payroll costs are recorded in a job cost accounting system:

Labor costs in manufacturing can be:

Canberra Company uses a job order cost accounting system. During the current month, the factory payroll of $180,000 was paid in cash. The amount of labor classified as direct labor was three times greater than the amount classified as indirect labor. What amount should be debited to Factory Overhead for indirect labor for this month?

A company has an overhead application rate of 125% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $20,000?

Canoe Company's manufacturing accounting system uses direct labor costs to apply overhead to goods in process and finished goods inventories. Canoe Company's manufacturing costs for the year were: direct labor, $30,000; direct materials, $50,000; and factory overhead applied, $6,000. The overhead application rate was: A. 5.0%

The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:

The rate established prior to the beginning of a period that relates estimated overhead to an allocation factor such as estimated direct labor and that is used to assign overhead cost to jobs is the:

BVD Company uses a job order cost accounting system and last period incurred $80,000 of overhead and $100,000 of direct labor. BVD estimates that its overhead next period will be $75,000. It also expects to incur $100,000 of direct labor. If BVD bases applied overhead on direct labor cost, their overhead application rate for the next period should be:

O.K. Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs. O.K. expects to incur $800,000 of overhead during the next period and expects to use 50,000 labor hours at a cost of $10.00 per hour. What is O.K. Company's overhead application rate?

Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. At the end of the period, the records show that there had been 180,000 hours of direct labor and $1,200,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead allocation rate?

Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. At the end of the period, the records show that there had been 180,000 hours of direct labor and $1,200,000 of actual overhead costs. Using direct labor hours as the allocation base, calculate the under- or overapplied overhead for the period.

The R&R Company's manufacturing costs for August are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; taxes on raw materials and work in process, $800; heat, lights, and power, $1,000; and insurance on plant and equipment, $200. R&R Company's factory overhead incurred for August is:

A company allocates overhead to production on the basis of direct labor cost. If the company's total estimated overhead is $870,000 and estimated direct labor cost is $1,160,000, determine the amount of overhead to be allocated to finished goods inventory. There is $791,000 of total direct labor cost in the jobs in the finished goods inventory.

If a company applies overhead to production with a predetermined rate, a credit balance in the Factory Overhead account at the end of the period means that:

A material amount of overapplied or underapplied overhead should be disposed of by allocating it to:

Overhead is applied as a percent of direct labor costs. Estimated overhead and direct labor costs for the year were $112,500 and $125,000, respectively. During the year, actual overhead was $107,400 and actual direct labor cost was $120,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include:

The statement of cash flows reports:

The statement of cash flows is:

An investment that is readily convertible to a known amount of cash and that is sufficiently close to its maturity date so that its market value is relatively insensitive to interest rate changes is a(n):

The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is:

The appropriate section in the statement of cash flows for reporting the cash payment of wages is:

The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:

A company's transactions with its creditors to borrow money and/or to repay the principal amounts of loans are reported as cash flows from:

Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as:

The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

Which one of the following is representative of typical cash flows from orating activities?

Cash flows from selling trading securities are reported in the statement of cash flows as part of:

Cash flows from interest received are reported in the statement of cash flows as part of:

The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is:

The accounting principle that requires significant noncash financing and investing activities be reported on the statement of cash flows is the:

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:

Accounting standards:

The cash flow on total assets ratio:

The cash flow on total assets ratio is calculated by:

The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts, such as receipts from customers, and subtracts the major items of operating cash disbursements, such as cash paid for merchandise, is referred to as the:

A statement of cash flows should reconcile the differences between the beginning and ending balances of:

The direct method for the preparation of the operating activities section of the statement of cash flows:

The indirect method for the preparation of the operating activities section of the statement of cash flows:

The direct method of reporting operating cash flows:

If a company borrows money from a bank, the interest paid on this loan should be reported on the statement of cash flows as a(n):

When using the indirect method to calculate and report net cash provided or used by operating activities, which of the following is subtracted from net income?

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is:

Which of the following items is reported on the statement of cash flows under financing activities?

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

Which of the following transactions or events should be reported as a source of cash from operating activities when using the direct method?

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from operating activities generally affect:

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from investing activities generally affect:

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from financing activities generally affect:

External users of financial information:

Internal users of financial information:

Financial reporting refers to:

The ability to meet short-term obligations and to generate revenues using the least amount of resources is called:

The ability to provide financial rewards sufficient to attract and retain financing is called:

The ability to generate future revenues and meet long-term obligations is referred to as:

The ability to generate positive market expectations is called:

Intracompany standards for financial statement analysis:

Industry standards for financial statement analysis:

General standards of comparisons (rules-of-thumb) are developed from:

The three most common tools of financial analysis are:

The comparison of a company's financial condition and performance across time is known as:

The measurement of key relations among financial statement items is known as:

The comparison of a company's financial condition and performance to a base amount is known as:

Which of the following financial statement sections includes information on the background on a company, its industry, and its economic setting?

Financial statements with data for two or more successive accounting periods placed in columns side by side, sometimes with changes shown in dollar amounts and percents, are referred to as:

Horizontal analysis:

Trend analysis is also called:

The dollar change for a financial statement item is calculated by:

In horizontal analysis the percent change is computed by:

In which comparative financial statements is each amount expressed as a percentage of a base amount?

Comparative financial statements in which each amount is expressed as a percentage of a base amount and in which the base amount is expressed as 100% are called:

Common-size statements:

The common-size percent is computed by:

Current assets minus current liabilities is equal to:

Current assets divided by current liabilities is equal to the:

Quick assets divided by current liabilities is equal to the:

Net sales divided by average accounts receivable is equal to the:

Dividing accounts receivable by net sales and multiplying the result by 365 is equal to the:

Dividing ending inventory by cost of goods sold and multiplying the result by 365 is equal to the:

Net sales divided by average total assets is equal to the:

Net income divided by net sales is equal to the:

Net income divided by average total assets is equal to the:

Annual cash dividends per share divided by market price per share is equal to the:

The average number of times a company's inventory is sold during an accounting period, calculated by dividing cost of goods sold by the average inventory balance, is equal to the:

Managerial accounting information:

Managerial accounting is different from financial accounting in that:

Flexibility of practice when applied to managerial accounting means that:

Continuous improvement:

An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:

A management concept that encourages all managers and employees to be in tune with the wants and needs of customers, and which leads to flexible product designs and production processes, is called:

An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:

A management concept that applies quality improvement to all aspects of business activities is called:

The way of doing business whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

Which of the following is not a characteristic of all fraud?

Which of the following statements regarding fraud is true?

A direct cost is a cost that is:

The salary paid to the supervisor of an assembly line would normally be classified as:

Classifying costs by behavior involves:

Costs classified by controllability are useful for:

The three major cost components of a manufactured product are:

Period costs for a manufacturing company would flow directly to:

Costs that are first assigned to inventory are called:

Costs that flow directly to the current income statement are called:

Product costs:

Which of the following items appears only in a manufacturing company's financial statements?

The total cost of goods completed during the accounting period for a manufacturer is called:

Days' sales in raw materials inventory is a measure of:

Which one of the following items is normally not a manufacturing cost?

A manufacturing statement is also known as a schedule or listing of the: