Managerial chapter 15

A cost of goods manufactured schedule shows beginning and ending inventories for: (a)raw materials and work in process only. (b)work in process only. (c)raw materials only. (d)raw materials, work in process, and finished goods.

a

Which of the following is not an element of manufacturing overhead? (a)Sales manager's salary. (b)Plant manager's salary. (c)Factory repairman's wages. (d)Product inspector's salary.

a

After passage of the Sarbanes-Oxley Act: (a)reports prepared by managerial accountants must by audited by CPAs. (b)CEOs and CFOs must certify that financial statements give a fair presentation of the company's operating results. (c)the audit committee, rather than top management, is responsible for the company's financial statements. (d)reports prepared by managerial accountants must comply with generally accepted accounting principles (GAAP).

b

Managerial accounting: (a)is governed by generally accepted accounting principles. (b)places emphasis on special-purpose information. (c)pertains to the entity as a whole and is highly aggregated. (d)is limited to cost data.

b

The management of an organization performs several broad functions. They are: (a)planning, directing, and selling. (b)planning, directing, and controlling. (c)planning, manufacturing, and controlling. (d)directing, manufacturing, and controlling.

b

Cost of goods available for sale is a step in the calculation of cost of goods sold of: (a)a merchandising company but not a manufacturing company. (b)a manufacturing company but not a merchandising company. (c)a merchandising company and a manufacturing company. (d)neither a manufacturing company nor a merchandising company.

c

For the year, Redder Company has cost of goods manufactured of $600,000, beginning finished goods inventory of $200,000, and ending finished goods inventory of $250,000. The cost of goods sold is: (a)$450,000. (b)$500,000. (c)$550,000. (d)$600,000.

c

Indirect labor is a: (a)nonmanufacturing cost. (b)raw material cost. (c)product cost. (d)period cost.

c

Which of the following costs are classified as a period cost? (a)Wages paid to a factory custodian. (b)Wages paid to a production department supervisor. (c)Wages paid to a cost accounting department supervisor. (d)Wages paid to an assembly worker.

c

Corporate social responsibility refers to: (a)the practice by management of reviewing all business processes in an effort to increase productivity and eliminate waste. (b)an approach used to allocate overhead based on each product's use of activities. (c)the attempt by management to identify and eliminate constraints within the value chain. (d)efforts by companies to employ sustainable business practices with regard to employees and the environment.

d

The formula to determine the cost of goods manufactured is: (a)Beginning raw materials inventory + Total manufacturing costs − Ending work in process inventory. (b)Beginning work in process inventory + Total manufacturing costs − Ending finished goods inventory. (c)Beginning finished good inventory + Total manufacturing costs − Ending finished goods inventory. (d)Beginning work in process inventory + Total manufacturing costs − Ending work in process inventory.

d

Which of the following costs would a computer manufacturer include in manufacturing overhead? (a)The cost of the disk drives. (b)The wages earned by computer assemblers. (c)The cost of the memory chips. (d)Depreciation on testing equipment.

d

Which of the following managerial accounting techniques attempts to allocate manufacturing overhead in a more meaningful fashion? (a)Just-in-time inventory. (b)Total quality management. (c)Balanced scorecard. (d)Activity-based costing.

d