ACCY 207 Exam 1 Review
Job #4260 consisted of 1.000 units at a total cost of $200.000. The cost transferred to Cost of Goods Sold for the sale of 600 of the units is O $600,000 O $80,000 O $200.000 O $120.000
$120,000 Reason: $200.000 ÷ 1.000 x 600 = $120,000
The adjustment for underapplied overhead O decreases both cost of goods sold and net operating income O increases cost of goods sold and decreases net operating income O decreases cost of goods sold and increases net operating income O increases both cost of goods sold and net operating income
Increases cost of goods sold and decrease net operating income
Motivation that comes from within is known as _______motivation.
Intrinsic
A journal entry debiting Salaries expense and crediting Salaries and wages payable could record: O factory supervisors' salaries. O maintenance salaries. O administrative salaries. O assembly workers' wages.
Administrative salaries
What side of the Manufacturing overhead account is actual manufacturing overhead entered on? O Always the credit side O The credit side, if actual is greater than applied. O Always the debit side O The debit side, if actual is greater than applied
Always the debit side
Overhead is underapplied if O actual overhead is more than applied overhead O cost of goods manufactured is less than cost of goods sold O actual overhead is less than applied overhead. O adjusted cost of goods sold is less than unadjusted cost of goods sold
Actual overhead is more than applied overhead
Indirect materials and indirect labor are classified as O period costs O nonspecific materials O nonspecific labor O manufacturing overhead
Manufacturing overhead
The journal entry to record labor costs credits O Direct labor O Manufacturing overhead O Work in process O salaries and wages payable
Salaries and wages payable
Contribution margin is O sales revenue minus variable costs O sales revenue minus cost of goods sold O all revenues minus all costs O sales revenue minus fixed costs
Sales revenue minus variable costs
When all of a company's job cost sheets are viewed collectively, they form what is known as a(n) O financial statement backup O job cost ledger O subsidiary ledger O book of original entry
Subsidiary ledger
A regional sales manager's salary is a direct cost of the regional office in which the sales manager works. O True O False
True
Opportunity costs are benefits that are given up when selecting one alternative over another and should be considered in decision making O true O false
True
The finished product of one company can become raw materials for another company. O true O False
True
The journal entry to record manufacturing labor costs debits: O Work in process and Salaries and wages payable. O Work in process and Manufacturing overhead. O Salaries and wages payable. O Manufacturing overhead and Salaries and wages payable.
Work in process and manufacturing overhead
Administrative costs include O factory maintenance workers' wages and factory supervisors' salaries O executive compensation and public relations costs O sales commissions and factory supervisors' salaries O shipping costs and sales commissions
executive compensation and public relations costs
Factory materials, such as cleaning supplies, that are not components of finished products are classified as O manufacturing overhead O period costs O direct materials O Administrative costs
manufacturing overhead
Martin Industries had unadjusted cost c? goods sold of $450,000. Overhead was underapplied by $30,000. Adjusted cost of goods sold is O $420.000 O $450,000 O ＄480,000
＄480,000 Reason: $450.000 + $30,000 = $480,000.
Why do companies use a predetermined overhead rate rather than an actual overhead rate? O A predetermined overhead rate is more accurate. O A predetermined overhead rate is easier to use O An actual overhead rate is not known until the end of the period. O An actual overhead rate can never be calculated.
An actual overhead rate is not known until the end of the period
Job cost sheets and the work in process account contain_____manufacturing overhead. O applied O budgeted O actual
Applied
Actual manufacturing overhead costs are recorded in the Manufacturing Overhead account O when jobs are completed O as they are incurred O at the end of the period O as the allocation base is used on a job
As they are incurred
Raw materials inventory is an O asset O liability O revenue O expense
Asset
A journal entry that debits Depreciation expense and credits Accumulated depreciation records O the sale of office equipment O depreciation on office equipment O depreciation on the factory building O depreciation on factory machinery
Depreciation on office equipment
Underapplied or overapplied overhead is the O overhead applied to work in process O difference between overhead applied to work in process and actual overhead O sum of overhead applied to work in process and actual overhead O actual overhead
Difference between overhead applied to work in process and actual overhead
Costs that can be easily and conveniently traced to a specific product are called____ costs O indirect O period O direct O common
Direct
Fantastic Furniture makes custom order couches. The material used to make a couch is a(n) ______ cost of the customer placing the order. O common O indirect O direct O overhead
Direct
The materials that go into the final product are called ______ materials. O direct O inderect
Direct
A cost that can be easily and conveniently traced to a specific cost object is a(n) ______ cost of that cost object, whereas costs that cannot be easily and conveniently traced to that specific cost object are ______ costs.
Direct Indirect
Labor costs that can be easily and conveniently traced to specific products are____costs O manufacturing overhead O direct labor O indirect labor O selling
Direct labor
A journal entry that debits Manufacturing overhead and credits Accounts payable would not be used to record O factory utilities costs O miscellaneous factory overhead costs O direct labor costs O rent on factory equipment
Direct labor costs
What are the 3 categories of manufacturing costs?
Direct materials, direct labor and manufacturing overhead
Selling and administrative costs are____ costs. O always indirect O always direct O direct or indirect
Direct or indirect
To calculate the unit product cost using the job cost sheet _____ by the number of units produced. O multiply the total job cost divide the total job cost- O add direct labor to manufacturing overhead and divide O add direct labor to direct materials and divide
Divide the total job cost
The journal entry to record a cash payment of $400 for insurance on administrative office equipment debits ______ and credits cash. O insurance expense O work in process O depreciation expense O manufacturing overhead
Insurance expense
A journal entry that debits Work in process and Manufacturing overhead and credits Raw materials records the: O purchase of materials. O completion of goods. O issuance of materials. O application of manufacturing overhead.
Issuance of materials
An allocation base should be: O a cost object. O a cost driver. O direct labor hours. O machine hours.
A cost driver
Indirect labor costs include factory security guard wages and assembly line worker wages O true O false
True
Manufacturing overhead consists of many different types of costs such as indirect costs and fixed costs O true O false
True
Presenting fixed costs on an average per unit basis makes them look like they are variable costs. O True O False
True
A normal cost system assigns overhead to jobs using O a predetermined overhead rate O an actual overhead rate O budgeted production standards
A predetermined overhead rate
The journal entry to record the purchase of materials credits O manufacturing overhead O accounts payable O raw materials O work in process
Accounts payable
Overapplied or underapplied overhead is the difference between O actual total overhead and estimated total overhead O actual total overhead and total overhead applied O estimated total overhead and total overhead applied
Actual overhead and total overhead applied
The Manufacturing Overhead account is debited when O actual overhead costs are incurred O goods are completed O overhead is applied to Work in Process
Actual overhead costs are incurred
An essential quality of an overhead allocation base is that it must O vary with all overhead costs O be a cost associated with producing the firm's goods O be calculated using a predetermined overhead rate O be common to all the company's products and services
Be common to all the company's products and services
Regarding data analytics, managers use______analytics to answer the question "What happened?" and_______ analytics to answer the question "Why did it happen?"
Blank 1: descriptive Blank 2: diagnostics
A series of steps followed to carry out a task that can span departmental boundaries is a_______ O strategy O business process O value chain
Business process
Differential costs O can be fixed or variable O include all costs related to a decision O are always variable costs
Can be fixed or variable
True or false: Managerial accounting skills are needed in for profit, not-for-profit and governmental entities.
True
Which type of cost changes in total, in direct proportion to changes in activity level? O Opportunity O Differential O Fixed O Variable
Vairable
In terms of the five V's of Big Data, the data formats in which information is stored is referred to as
Variety
Variable costs O vary per unit, remain constant in total O vary in total, remain constant per unit O vary in total, remain constant in total O vary per unit, remain constant per unit
Vary in total, remain constant per unit
For accounting professionals, the most important of the "five Vs" of Big Data is likely O volume O veracity O variety O value O velocity
Veracity
Which of the following is not one of the basic questions asked during the decision making process? O How should we execute? O Who should we be serving? O When should we be selling? O What should we be selling?
When should we be selling
The amount transferred from Work in Process to Finished Goods is O cost of goods sold O cost of goods manufactured O ending inventory
Cost of goods manufactured
Gross margin is calculated by subtracting____ from_____ O variable cost; sales O selling and administrative expenses; sales O fixed cost; sales O cost of goods sold; sales
Cost of goods sold; sales
Actual manufacturing overhead was $50,000, while overhead applied to jobs was $45,000. The entry to dispose of underapplied or overapplied overhead O debits Manufacturing ove nead $50,000 O credits Manufacturing overhead $50,000. O credits Manufacturing overhea® $5,000 O debits Manufacturing overhead $5.000
Credits manufacturing overhead $5,000
Companies should provide_____ shopping and tracking orders with competent, courteous, and rapid delivery of products and services and easy-to-use information systems for O stockholders O communities O suppliers O customers
Customers
The difference between the entries to record depreciation on office equipment and depreciation on factory equipment is that one: O debits Depreciation expense, while the other debits Manufacturing overhead. O debits Accumulated depreciation, while the other debits Manufacturing overhead. O debits Accumulated depreciation, while the other debits Depreciation expense. O credits Accumulated depreciation, while the other credits Manufacturing overhead.
Debits depreciation expense, while the other debits manufacturing overhead
A manager selecting a course of action is performing a ______ activity O controlling O planning O budgeting O decision making
Decision making
Differential costs, opportunity costs and sunk costs are all cost classifications used in: O account analysis. O financial statements. O decision making O predicting cost behavior.
Decision making
Without ethical behavior, the quality of products and services would O decrease O not be affected O increase
Decrease
If overapplied over lead is closed out to Cost of goods sold, the Cost of goods sold account will be O increased O decreased
Decreased
A journal entry that debits Manufacturing overhead and credits Accumulated depreciation records O the incurrence of general factory overhead costs O depreciation on factory equipment O the purchase of indirect materials O depreciation on office equipment
Depreciation on factory equipment
To calculate a predetermined overhead rate, divide estimated total manufacturing overhead by the O estimated units of production O estimated total direct labor hours O actual total manufacturing overhead O estimated total allocation base
Estimated total allocation base
Giving employees a bonus for meeting a specific goal is an example of a(n) ______ incentive.
Extrinsic
Actual overhead costs appear in the Work in Process account but not on the job cost sheet. O True O False
False
All of a company's depreciation, property taxes, and insurance premiums are considered manufacturing overhead. O true O false
False
Job-order costing can only be used in manufacturing firms. O True O False
False
True or false: Giving employees an annual bonus increases their intrinsic motivation to pursue company goals.
False
The journal entry to record a completed job debits O Manufacturing overhead O Finished goods O Work in process O Cost of goods sold
Finished goods
When jobs are sold their costs are transferred out of O Finished Goods O Cost of Goods Sold O Cost of Goods Manufactured O Work in Process
Finished goods
As the level of activity moves outside of the relevant range, ______ costs increase or decrease in discrete steps rather than an linear fashion. O mixed O variable O fixed
Fixed
The journal entry to record a completed job credits O Cost of goods sold O Work in process O Manufacturing overhead O Finished goods
Work in process
Units that are partially complete are found in O Work in Process O Raw Materials O Cost of Goods Sold O Finished Goods
Work in process
Which of the following is a clearing account? O Finished goods O Work in process O Raw materials O Manufacturing overhead
Work in process
The journal entry to record $10,000 in manufacturing overhead applied to Job #40 debits O Cost of goods sold $10,000 and credits Work in process $10,000 O Manufacturing overhead $10,000-and credits Work in process $10,000 O Cost of goods sold $10,000 and credits Manufacturing overhead $10,000 O Work in process $10,000 and credits Manufacturing overhead $10,000
Work in process $10,000 and credits Manufacturing overhead $10,000
The journal entry to record issuing both direct and indirect materials into production debits O Manufacturing overhead and Raw materials O Work in process and Raw materials O Work in process and Manufacturing overhead
Work in process and manufacturing overhead
To calculate cost of goods manufactured add O beginning work in process to total manufacturing costs, then deduct ending work in process O beginning tinished gods to total manufacturing costs, then deduct ending finished goods O ending work in process to total manufacturing costs, then deduct beginning work in process O ending finished goods to total manufacturing costs, then deduct beginning finished goods
beginning work in process to total manufacturing costs, then deduct ending work in process
Planning involves O performing reviews of the internal control system O ensuring that operations are on track O motivating employees to perform routine activities O establishing goals and specifying how to achieve them
establishing goals and specifying how to achieve them
Average manufacturing overhead cost per unit usually varies from one period to the next because O variable overhead costs per unit vary when production changes O the makeup of manufacturing overhead changes from period to period O fixed manufacturing overhead remains constant in total even when production changes
fixed manufacturing overhead remains constant in total even when production changes
Manufacturing overhead costs include O direct materials, sales commissions, and factory assembly workers' wages O direct materials, administrative taxes and insurance, and sales commissions O administrative taxes and insurance, sales commissions, and factory assembly workers' wages O indirect materials, factory supervisors' salaries, and factory depreciation
indirect materials, factory supervisors' salaries, and factory depreciation
Cost of goods manufactured O is the same as cost of goods sold O includes the manufacturing costs of goods finished during the period O is generally recorded as an asset on the balance sheet
Includes the manufacturing costs of goods finished during the period
As the level of activity moves outside of the relevant range, fixed costs,______ O increase or decrease in a linear fashion O do notincrease or decrease O increase or decrease in discrete steps
Increase or decrease in discrete steps
In terms of the five V's of Big Data, the two that define users' expectations are_____ and_____
value veracity
For a given period, the manufacturing overhead applied is $500,000, and the actual manufacturing overhead cost for that period is $625,000. Calculate the amount by which overhead is overapplied or underapplied. O $125,000 underapplied O$25,000 underapplied O $125,000 overapplied O $25,000 overapplied
$125,000 under applied Reason: Manufacturing overhead = Actual overhead cost - Manufacturing overhead applied = $625,000 - $500,000 = $125,000 under applied
Jones Company uses a job-order costing system with a predetermined overhead rate of 120% of direct labor cost. The job cost sheet for Job #420 listed $4,000 in direct materials cost and $5,000 in direct labor cost to manufacture 7.500 units. The unit cost of Job #420 is: O $2.00. O $1.33. O $1.20
$2.00 Reason: Total cost of Job #420 = Direct materials + direct labor + overhead (predetermined overhead rate × direct labor cost) = $4,000 +$5,000 + 1.20 x $5,000 = $15,000 Unit product cost = $15,000 ÷ 7,500 units = $2.00 per unit
Given: Cost of goods manufactured of $234,000; beginning finished goods inventory of $18,000; and ending finished goods inventory of $24,000, calculate unadjusted cost of goods sold. O $252,000 O $258.000 O $240,000 O $228.000
$228,000 Reason: $18.000 + $234.000 - $24,000 = $228,000
Based on the following information, compute the cost of goods sold for Spengler Merchandising Corporation. Sales $400,000 Purchases $300,000 Beginning inventory $50,000 Ending inventory $90,000 Selling expenses $70,000 Administrative expenses $30,000 Accounts receivable $110,000 O $140.000 O $370,000 O $340,000 O $260,000
$260,000 Reason: Beginning Inventory ($50,000) + Purchases ($300,000) - Ending Inventory ($90,000) = Cost of Goods Sold
Based on the following information, compute the cost of goods sold for Spengler Merchandising Corporation. Sales $400,000 Purchases $300,000 Beginning inventory $50,000 Ending inventory $90,000 Selling expenses $70,000 Administrative expenses $30,000 Accounts receivable $110,000 O $370,000 O $140,000 O $260,000 O $340, 000
$260,000 Reason: Beginning Inventory ($50,000) + Purchases ($300,000) - Ending Inventory ($90,000) = Cost of Goods Sold
Given the following, compute the cost of goods manufactured. Direct material cost: $40,000 Direct labor cost: $100,000 Applied overhead: $120,000 Beginning work in process inventory: $30,000 Ending work in process inventory: $12,000 O $278,000 O $242,000 O $302, 000 O $260,000
$278,000 Reason: Cost of goods nanus ctured = $30,000 + $40,000 + $100,000 + $120,000 - $12,000 = $278,000
Meep Incistries had unadjusted cost of goods sold of $300,000. Overhead was overapplied by $20,000. Adjusted cost of goods sold is Feedback O $300.000 O $280.000 O $320,000
$280,000 Reason: $300,000 - $20.000 = $280.000.
Gemit had Sales of $50,000, Cost of goods sold of $20,000, and Selling and administrative expenses of $25,000. Gross margin is O $36.000 O $45,000 O $5,000 O $25,000
$30,000 Reason: $50,000 - $20.000 = $30.000
A company purchased a 12 month insurance policy on October 1 for $1,200. On the December. 31 annual financial statements, O $300 is reported as a expense and $900 is reported as an asset O $1,200 is reported as an asset O $900 is reported as a expense and $300 is reported as an asset O $1,200 is reported as an expense
$300 is reported as a expense and $900 is reported as an asset
Based on the following information, calculate net income for Dana's Dress Shop using the traditional format. Sales $360,000 Gross Margin $140,000 Contribution Margin $110,000 Total Selling & Administrative Exp. $60,000 O $80,000 O $160,000 O $190, 000 O $50,000
$80,000 Reason: Gross Margin of $140,000 - Total Selling & Admin. Exp. of $60,000 = $80,000
George Corporation recognized $1,000 of accrued property taxes on its manufacturing facility. The journal entry to record this debits O Property taxes payable $1,000 and credits Manufacturing overhead $1,000 O Property taxes payable $1,000 and credits Work in process $1,000 O Work in process $1,000 and credits Property taxes payable $1,000 O Manufacturing overhead $1,000 and credits Property taxes payable $1,000
Manufacturing overhead $1,000 and credits Property taxes payable $1,000
The total cost of a job is calculated by adding the total of direct labor cost, direct materials cost, and: O predetermined manufacturing overhead cost and nonmanufacturing cost. O predetermined manufacturing overhead cost. O actual manufacturing overhead cost, and applied nonmanufacturing cost. O actual manufacturing overhead cost.
Predetermined manufacturing overhead cost
When using data analytics, the question "What should I do?" is answered with the use of_____ analytics. O diagnostic O prescriptive O descriptive O predictive
Prescriptive
The cost of goods manufactured for a period is the O average value of the Work in process account O value of all jobs transferred from Finished goods to Cost of goods sold O sum of all jobs in Finished goods account at the end of the period O sum of all amounts transferred between the Work in process account and the Finished goods account during that period
Sum of all amounts transferred between the work in process account and the finished goods account during that period
An income statement focusing on product and period costs has been prepared using a(n) traditional______format, while a(n)________format income statement makes a distinction between fixed and variable costs.
Traditional Contribution
A contribution approach income statement can assist with management decision making and separates costs into their fixed and variable components O true O false
True
A direct cost can be easily and conveniently traced to a specific cost object. O true O false
True
The primary role of managerial accountants is to O partner with co-workers within the organization to improve performance O ensure that tax reports are accurate and meet all legal requirements O help their organization design and maintain financial reporting systems that generate reliable financial disclosures
partner with co-workers within the organization to improve performance
Given: Cost of goods manufactured of $410,000; beginning finished goods inventory of $110,000 and ending finished goods inventory of $125,000, calculate unadjusted cost of goods sold. O $520,000 O $425,000 O $535,000 O $395,000
$395,000 Reason: $110,000 + $410,000 - $125,000 = $395,000
Given he following, calculate the cost of goods avallable for sale. Cost of goods manufactured of $410.000 Beginning Finished goods inventory of $110,000 Ending Firished goods inventory of $125,000 O $395.000 O $520,000 O $535.000 O $520,000 O$425,000
$520,000 Reason: Cost of goods available for sale = Beginning finished goods inventory + Cost of goods manufactured = $110,000 + $410,000 = $520.000
Luver Corporation's Gross margin is $100,000, Cost of goods sold equals $70,000, and Selling and administrative expenses total $45,000. Net operating income is O $30,000 O $55,000 O $25,000 O $(15,000)
$55,000 Reason: $100.000 - $45.000 = $55.000
Effective preventive and detective controls_____ quarantee a company will achieve its objectives. O cannot O can always O can sometimes
Cannot
The more accurate method of losing out the balance in Manufacturing overhead is: O allocating it among Raw materials, Work in process, and Finished goods. O closing it out to Finished goods, O allocating it among work in process, Finished goods, and Cost of goods sold. O closing it out to Cost of goods sold.
Closing out cost of goods sold
Distorted thought processes, that can adversely affect planning, controlling, and decision making are referred to as
Cognitive bias
Costs that are shared by multiple cost objects in a company are known as____costs O opportunity O common O marginal O direct
Common
Gathering feedback needed to ensure that expectations are being met is part of
Controlling
Milton Corporation sold goods costing $50,000 for $75,000. Journal entries to be made could include entries debiting O Cost of Goods Sold for $50,000 and Accounts Receivable for $75,000 O Finished Goods for $50,000 and Sales Revenue for $75,000 O Cost of Goods Sold for $75,000 and Accounts Receivable for $50,000 O Sales for $50,000 and Finished goods for $75,000
Cost of Goods Sold for $50,000 and Accounts Receivable for $75,000
Which of the following is only true in a multiple predetermined overhead rate system? O Each production department may have its own predetermined overhead rate O Overhead is applied multiple times throughout the period O Multiple types of overhead are included to calculate the predetermined overhead rate.
Each production department may have its own predetermined overhead rate
To calculate direct materials on the schedule of cost of goods manufactured, add purchases to beginning raw materials inventory and subtract O ending raw materials inventory and Indirect materials used O beginning raw materials inventory and Indirect materials used O only ending raw materials inventory O only beginning raw materials inventory
Ending raw materials inventory and indirect materials used
The cost of jobs still unfinished at the end of a period are included in O ending Work in process inventory O the income statement O beginning Finished goods inventory for the next period O Cost of goods manufactured
Ending work in process inventory
True or false: Period costs flow from Finished Goods to Cost of Goods Sold. O True O False
False Reason: Period costs are recorded as expenses as incurred and do not flow through the inventory accounts.
Himber, Inc. just completed a job that cost $14.000 in direct materials. $12,000 in direct labor, and $8,000 in applied manufacturing overhead. The journal entry to record completion of the job debits O Finished goods $26,000 and credits Work in process $26,000 O Finished goods $34,000 and credits Work in process $34,000 O Cost of goods sold $34,000 and credits Work in process $26,000 O Finished goods $34,000 and credits Work in process $26.000 and Manufacturing overhead $12.000
Finished goods $34,000 and credits Work in process $34.000 Reason: Finished goods, including direct materials, direct labor and manufacturing overhead, equals $34,000.
Within the relevant range of activity, costs remain constant in total. O fixed O variable O neither fixed nor variable O both fixed and variable
Fixed
Controlling involves O preparing annual budgets O gathering feedback to ensure plans are being properly executed or modified as needed O determining where to focus marketing efforts for the next year O establishing goals for the company
Gathering feedback to ensure plans are being properly executed or modified as beefed
A journal entry debiting Cost of goods sold and crediting Finished goods is made when O the period is completed O goods are sold O goods are started O goods are finished
Goods are sold
Selling and administrative costs first appear on the O income statement O balance sheet
Income statement
Labor costs charged to Manufacturing Overhead represent ____ labor costs. O both direct and indirect labor O direct O indirect
Indirect
Minor items such as nails and glue are usually considered to be ______. O indirect materials O selling costs O direct materials O Administrative costs
Indirect materials
If a company incurs $2,000 of factory rent, $1,000 of factory utilities, and $5,000 of miscellaneous factory costs, the journal entry to record these transactions would be to debit O Accounts payable $8,000 and credit Manufacturing overhead $8,000 O Manufacturing overhead $8,000 and credit Accounts payable $8,000 O Work in process $8,000 and credit Accounts pavable $8.000 O Accounts payable $8,000 and credit Work in process $8,000
Manufacturing overhead $8,000 and credit Accounts payable $8,000
The journal entry to record expired prepaid insurance on factory equipment is debit O Prepaid Insurance and credit Accounts Payable O Work in Process and credit Prepaid Insurance O Manufacturing Overhead and credit Prepaid Insurance O Insurance Expense and credit Prepaid Insurance
Manufacturing overhead and credit prepaid insurance
The journal entry to record depreciation on factory equipment debits O Manufacturing overhead and credits Depreciation expense O O Work in process and credits Depreciation expense O Manufacturing overhead and credits Accumulated depreciation O Work in process and credits Accumulated depreciation
Manufacturing overhead and credits accumulated depreciation
The journal entry to record accrued property taxes for a factory building debits O Work in process and credits Property taxes payable O Manufacturing overhead and credits Accounts payable O Work in process and credits Manufacturing overhead O Manufacturing overhead and credits Property taxes payable
Manufacturing overhead and credits property taxes payable
The revenue from selling one additional unit is called revenue O opportunity O marginal O economic
Marginal
Direct materials costs are recorded on the job cost sheet when the O job is sold to a customer O job is complete O materials are issued to the job O requisition form is submitted to the storeroom clerk
Materials are issued to the job
A cost that contains both variable and fixed cost elements is a(n)___ cost, O semifixed O sunk O opportunity O mixed
Mixed
Gross margin minus selling and administrative expenses equals O cost of goods sold O cost of goods manufactured O net operating income O net operating assets
Net operating income
When labor costs are incurred ______ labor costs are added directly to the Work in Process account. O only indirect O both direct and indirect O only direct
Only indirect
The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find O actual overhead O the total cost of the job O overhead applied to the job O the predetermined overhead rate for the job
Overhead applied to the job
Selling and administrative costs incurred are treated as O period expenses O product costs O assets O liabilities
Period expenses
The management activity of______ includes specifying how to achieve established goals.
Planning
Three activities to the role of managerial accounting are_____ O Planning,controlling, and decision making O planning, recording and summarizing O recording, analysis, and reporting O planning, reporting and analysis
Planning, controlling and decision making
Having strict guidelines for check authorizations is an example of a____control. O detective O preventative
Preventative
An internal control that deters the occurrence of undesirable events is a(n)______control.
Preventitive
Direct materials, direct labor, and manufacturing overhead are all ____ costs O conversion O product O variable O period O direct
Product
A journal entry that debits Raw Materials and credits Accounts Payable is recording the O completion of goods O sale of goods O purchase of materials O issuance of materials into production
Purchase of materials
The journal entry to record the purchase of materials debits O work in process O accounts payable O raw materials O manufacturing overhead
Raw materials