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Introduction to Managerial Accounting

An Introduction to Managerial Accounting and Cost Concepts

# Multiple Choice Quiz

1

The salary of the vice president of finance would be considered a(n):
A)manufacturing cost.
B)product cost.
D)selling expense.
2

The wages of materials handling personnel in a factory would usually be considered:
 Indirect labor Manufacturing overhead A) No Yes B) Yes No C) Yes Yes D) No No
3

If the cost of goods manufactured is greater than the cost of goods sold, then:
A)work in process inventory has decreased during the period.
B)finished goods inventory has increased during the period.
C)total manufacturing costs must be greater than cost of goods manufactured.
D)finished goods inventory has decreased during the period.
4

Within the relevant range:
A)both total variable costs and total fixed costs will remain constant.
B)both total variable costs and total fixed costs fluctuate.
C)fixed costs per unit will remain constant and variable costs per unit will fluctuate.
D)variable costs per unit will remain constant and fixed costs per unit will fluctuate.
5

Which one of the following costs should not be considered an indirect cost of serving a particular customer at a Pizza Hut franchise?
A)The salary of the franchise's manager.
B)The cost of the tables and chairs used to furnish the restaurant.
C)The cost of the dough used to make the pizza that is ordered.
D)The cost of lighting and heating the restaurant.
6

An opportunity cost is:
A)the difference between the total cost of one alternative and the total cost of another alternative.
B)the benefit forgone when one alternative is selected rather than another.
C)a cost that is saved by not adopting a given alternative.
D)a cost that continues to be incurred even when there is no activity.
7

The following data (in thousands of dollars) have been taken from the accounting records of Casey Corporation for the just completed year.
 Administrative expense \$ 30 Direct labo 40 Finished goods inventory, beginnin 24 Finished goods inventory, endin 32 Manufacturing overhea 46 Purchases of raw material 24 Raw materials inventory, beginnin 8 Raw materials inventory, endin 14 Sale 1,98 Selling expense 28 Work in process inventory, beginnin 14 Work in process inventory, endin 10
The cost of the raw materials used in production during the year (in thousands of dollars) was:
A)\$180.
B)\$300.
C)\$320.
D)\$380.
8

The following data (in thousands of dollars) have been taken from the accounting records of Casey Corporation for the just completed year. (Note that this is the same data as that provided for the question above.)
 Administrative expense \$ 30 Direct labo 40 Finished goods inventory, beginnin 24 Finished goods inventory, endin 32 Manufacturing overhea 46 Purchases of raw material 24 Raw materials inventory, beginnin 8 Raw materials inventory, endin 14 Sale 1,98 Selling expense 28 Work in process inventory, beginnin 14 Work in process inventory, endin 10
The cost of goods manufactured (finisheD) for the year (in thousands of dollars) was:
A)\$1,000.
B)\$1,040.
C)\$1,080.
D)\$1,180.
9

The following data (in thousands of dollars) have been taken from the accounting records of Casey Corporation for the just completed year. (Note that this is the same data as that provided for the question above.)
 Administrative expense \$ 30 Direct labo 40 Finished goods inventory, beginnin 24 Finished goods inventory, endin 32 Manufacturing overhea 46 Purchases of raw material 24 Raw materials inventory, beginnin 8 Raw materials inventory, endin 14 Sale 1,98 Selling expense 28 Work in process inventory, beginnin 14 Work in process inventory, endin 10
The cost of goods sold for the year (in thousands of dollars) was:
A)\$1,000.
B)\$1,160.
C)\$1,320.
D)\$1,400.
10

The following data (in thousands of dollars) have been taken from the accounting records of Casey Corporation for the just completed year. (Note that this is the same data as that provided for the question above.)
 Administrative expense \$ 30 Direct labo 40 Finished goods inventory, beginnin 24 Finished goods inventory, endin 32 Manufacturing overhea 46 Purchases of raw material 24 Raw materials inventory, beginnin 8 Raw materials inventory, endin 14 Sale 1,98 Selling expense 28 Work in process inventory, beginnin 14 Work in process inventory, endin 10
The net income for the year (in thousands of dollars) was:
A)\$300.
B)\$400.
C)\$500.
D)\$980.