Managerial Accounting Exam 2
Which of the following system provides for a separate record of the cost of each particular quantity of product that passes through the factory?
Job order costing
Which of the following are the two main types of costing systems for manufacturing operations
Job order costing and process costing.
Which the following is the correct flow of manufacturing costs
Raw materials, work in process, finish goods, cost of goods sold.
In job order, costing when goods that have been ordered are received. The receiving department personnel count the goods, inspect the goods and complete A.
Receiving report
Which of the following is a way to accomplish inactivity cost reduction?
This improve operations so that the activity base usage per unit is reduced
And job order costing the amount of time spent by an employee on an individual job is recorded on A.
Time ticket
A widely used activity base for developing factory overhead rates and highly automated settings is.
Machine hours
The document authorizing the issuance of materials from the store room is A.
Materials requisition
At the end of the fiscal year, the balance in factory overhead is small, the balance will be.
Transfer to cost of goods sold.
Goods that are partially completed are
Work in process inventory.
Which of the fine would most likely use process costing?
lawn fertilizer manufacturer
Which of the following would most likely use job order costing
swimming pool installer
Prime cost are
Direct materials and direct labor.
Activity rates are determined by.
Dividing the cost budgeted for each activity. Pool by the estimated activity base for that pool.
A product cost is
Expensed in the period the product is sold
Which of the following is an example of a factory overhead cost?
Factory heating and lighting cost.
Which of the following would be omitted from the "current assets" section of the balance sheet
Factory overhead
Accounting designed to meet the needs of decision makers inside the business is
Managerial accounting
Which of the following individuals are charged with the responsibility of directing the day-to-day operations of a business?
Managers
Costs other than direct material costs and direct labor costs incurred in the manufacturing process are classified as.
Factory overhead cost.
Which of the following is a reason for banks to use activity based costing?
To determine both amounts to charge and the profitability of services provided.
Which of the following managerial decisions relies on accurate product costing? Establish a product mix Set product sales price discontinue a product line All of these choices
All of these choices.
Common allocation bases for factory overhead costs are
Direct labor dollars, Direct labor hours, machine hours
Which of the following must be true in order for materials to be classified as direct materials?
They must be an internal part of the finished product and a significant portion of the total product cost.
It's selling and administrative expenses are allocated to different products. For decision making they should be reported in the financial statement as
A period cost.
Which of the following accounts will be found on the income statement
Cost of goods sold.
Which of the following costs are conversion costs?
Direct labor cost and factory overhead cost
The cost of wages pay to employees directly involved in the manufacturing process and converting materials into finished products is classified as.
Direct labor cost.
The cost of a manufactured product generally consist of which of the following cost.
Direct labor costs, direct materials, cost, and factory overhead cost.
Activity based costing can be beneficial and allocating, selling and administrative expenses to various products for managerial decision-making, which of the fine would be best allocation base for help desk costs.
Number of calls.
Shobank company is changing to an activity based costing method. It has determined that it will use 3 cost pools: set up, inspections, and assembly period which of the following would be an appropriate activity base for any of these 3 activities.
Number of units to be produced.
Period cost include
Operating costs that are shown on the income statement in the period in which they are incurred.
Costs that are incurred in generating revenues during the period but not involved in the manufacturing process are referred to as.
Period costs
Using multiple department factory overhead rates, instead of a single plant wide factory overhead rate.
Results in more accurate product cost.
Which of the following is a period cost?
Salary of telephone receptionist in the sales office.
Which of the following are actually factory overhead allocation methods
Single plant, wide rate, multiple production department rates, and activity based costing methods.
Which of the following items would be classified as part of factory overhead? Factory supplies used Production supervisors salaries Amortarization of manufacturing products. All of these choices.
All of these choices.