Chapter 18 Quiz

Which of the following is an example of direct materials cost for an automobile manufacturer? a.salary of production supervisor b.cost of interior upholstery c.cost of oil lubricants for factory machinery d.cost of wages of assembly worker

b. cost of interior upholstery

What is the primary criterion for the preparation of managerial accounting reports? a.timing of the reports b.manager needs c.cost of the reports d.relevance of the reports

b. manager needs

Goods that are partially completed by a manufacturer are a.merchandise inventory b.work in process inventory c.materials inventory d.finished goods inventory

b. work in process inventory

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as a.factory overhead costs b.period costs c.miscellaneous expenses d.product costs

a. factory overhead costs

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as a a.miscellaneous cost b.factory overhead cost c.direct materials cost d.direct labor cost

d. direct labor cost

Which of the following is most associated with financial accounting? a.can be prepared for the entity or segment b.can be prepared periodically, or as needed c.can have both objective and subjective information d.prepared in accordance with GAAP

d. prepared in accordance with GAAP

In most business organizations, the chief management accountant is called the a.controller b.chief accounting officer c.chairman of the board d.chief executive officer

a. controller

Period costs include a.current assets on the balance sheet b.operating costs that are shown on the income statement when products are sold c.operating costs that are shown on the income statement in the period in which they are incurred d.current liabilities on the balance sheet

c. operating costs that are shown on the income statement in the period in which they are incurred

Compute conversion costs given the following data: direct materials, $387,300; direct labor, $205,600; factory overhead, $185,600 and selling expenses, $42,600. a.$143,000 b.$572,900 c.$391,200 d.$778,500

c. $391,200 Direct labor + factory overhead = conversion cost

Which of the following is most associated with managerial accounting? a.is prepared for users outside the organization b.must follow GAAP c.may rely on estimates and forecasts d.always reports on the entire entity

c. may rely on estimates and forecasts