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| 1 | |
Managerial accounting provides financial and non-financial information to an organization's managers. |
| | A) | True |
| | B) | False |
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| 2 | |
Continuous improvement accepts the notions of "good enough" and "acceptable "and does not challenge employees and managers to try continuously experiment with new and improved business practices. |
| | A) | True |
| | B) | False |
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| 3 | |
A manufacturing company maintains three different types of manufacturing inventory accounts, whereas a merchandising company uses only one inventory account. |
| | A) | True |
| | B) | False |
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| 4 | |
Cost of Goods Manufactured appears on the Income Statement. |
| | A) | True |
| | B) | False |
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| 5 | |
Supervisory salaries are part of factory overhead. |
| | A) | True |
| | B) | False |
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| 6 | |
Beginning and ending Finished Goods Inventory is needed in order to determine the Cost of Goods Manufactured during a period. |
| | A) | True |
| | B) | False |
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| 7 | |
Direct material and direct labor costs increase with increases in production volume |
| | A) | True |
| | B) | False |
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| 8 | |
Finished Goods Inventory is included on the Manufacturing Statement. |
| | A) | True |
| | B) | False |
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| 9 | |
Direct Materials, Direct Labor and Factory Overhead are all needed to determine the cost of goods manufactured during a period. |
| | A) | True |
| | B) | False |
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| 10 | |
A manufacturing statement reports operating expenses incurred for the period. |
| | A) | True |
| | B) | False |
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| 11 | |
Cycle time = Process time + Inspection time + Wait time - Move time |
| | A) | True |
| | B) | False |
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| 12 | |
Raw materials ending inventory, Goods in process ending inventory and Finished goods ending inventory are all reported on a company's Balance Sheet. |
| | A) | True |
| | B) | False |
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| 13 | |
If beginning Raw materials inventory was $4,000 and purchases of raw materials during the period were $50,000 and ending Raw Materials inventory was $20,000, then the materials used during the period were $34,000. |
| | A) | True |
| | B) | False |
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| 14 | |
If beginning finished goods inventory was $10,000 and cost of goods manufactured was $150,000 and ending finished goods inventory was $60,000, then the goods sold during the period were $90,000. |
| | A) | True |
| | B) | False |
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| 15 | |
Factory overhead consists of all manufacturing costs including direct materials and direct labor. |
| | A) | True |
| | B) | False |
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| 16 | |
Which of the following would be considered factory overhead? |
| | A) | the cost of rags used in cleaning a machine |
| | B) | the factory janitor's salary |
| | C) | the cost of oil used on factory machines |
| | D) | all of these |
| | E) | none of these |
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| 17 | |
Which of the following probably is not considered factory overhead? |
| | A) | indirect labor |
| | B) | corporate officers' salaries |
| | C) | heat, light, and power for the factory |
| | D) | supervisory salaries |
| | E) | none of these |
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| 18 | |
Which of the following would not be a manufacturing cost? |
| | A) | depreciation of factory building |
| | B) | expenses for heat, light, and power for the factory |
| | C) | insurance on factory building |
| | D) | promotional expenses |
| | E) | none of these |
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| 19 | |
The inventory accounts of a manufacturer include |
| | A) | Finished Goods, Goods-in-Process, and Raw Materials. |
| | B) | Finished Goods, Goods-in-Process, and Cost of Goods Sold. |
| | C) | Raw Materials, Cost of Goods Sold, and Finished Goods. |
| | D) | Finished Goods and Cost of Goods Sold. |
| | E) | none of these. |
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| 20 | |
The following items are taken from a company's financial statements.
Beginning Goods-in-process inventory, $20,000
Ending Goods-in-process inventory, $25,000
Beginning finished goods inventory, $10,000
Ending finished goods inventory, $15,000
Raw materials used, $120,000
Direct labor, $40,000
Factory overhead, $30,000
What is the amount of the Cost of Goods Manufactured? |
| | A) | $185,000 |
| | B) | $260,000 |
| | C) | $180,000 |
| | D) | $195,000 |
| | E) | none of these |
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| 21 | |
Which of the following is NOT considered a variable cost? |
| | A) | material for a shirt |
| | B) | rent on the factory building |
| | C) | buttons for a shirt |
| | D) | labor to make a shirt |
| | E) | the fruit in a pie |
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| 22 | |
Details pertaining to raw materials are as follows:
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The cost of the raw materials used in November is |
| | A) | $750,000. |
| | B) | $550,000. |
| | C) | $850,000. |
| | D) | $1,050,000. |
| | E) | none of these. |
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| 23 | |
Which of the following is used to determine the cost of goods manufactured? |
| | A) | factory overhead |
| | B) | cost of raw materials used |
| | C) | direct labor |
| | D) | all of these |
| | E) | none of these |
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| 24 | |
A manufacturer has a beginning finished goods inventory of $70,000, an ending finished goods inventory of $50,000, a beginning goods-in-process inventory of $30,000, an ending goods-in-process inventory of $40,000, and total manufacturing costs of $110,000. What is the amount of the Cost of Goods Manufactured? |
| | A) | $120,000 |
| | B) | $110,000 |
| | C) | $80,000 |
| | D) | $100,000 |
| | E) | none of these |
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| 25 | |
Which of the following firms would probably not be a manufacturing firm? |
| | A) | toy maker |
| | B) | tire producer |
| | C) | wholesale auto parts outlet |
| | D) | chemical plant |
| | E) | none of these |
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| 26 | |
ABC Co receives and produces an order for 100 lawn mowers. The following times were measured during production of this order: (Process time, 2 days; inspection time, 1 day; Move time, .5 days; Wait time, 2 days.) In this case, what is the cycle time of this order? |
| | A) | 2.5 days |
| | B) | 3 days |
| | C) | 5.5 days |
| | D) | 3.5 days |
| | E) | none of these |
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| 27 | |
The following items are taken from a company's financial statements.
Beginning goods-in-process inventory, $10,000
Ending goods-in-process inventory, $5,000
Beginning finished goods inventory, $30,000
Ending finished goods inventory, $15,000
Raw materials used, $110,000
Direct labor, $50,000
Factory overhead, $60,000
What is the amount of the Cost of Goods Manufactured? |
| | A) | $220,000 |
| | B) | $250,000 |
| | C) | $225,000 |
| | D) | $280,000 |
| | E) | none of these |
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| 28 | |
Which of the following would be considered an indirect manufacturing cost? |
| | A) | chocolate in a candy bar |
| | B) | Factory light and heat |
| | C) | wages of steel worker in a car plant |
| | D) | paper in a book |
| | E) | none of these |
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| 29 | |
A manufacturer has a beginning finished goods inventory of $10,000, an ending finished goods inventory of $50,000, a beginning Goods-in-process inventory of $20,000, an ending Goods-in-process inventory of $60,000, and total manufacturing costs of $130,000. What is the amount of the Cost of Goods Manufactured? |
| | A) | $90,000 |
| | B) | $120,000 |
| | C) | $130,000 |
| | D) | $100,000 |
| | E) | none of these |
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| 30 | |
Goals of the lean business model include |
| | A) | satisfying the customer |
| | B) | eliminating waste |
| | C) | provide a positive return to the company |
| | D) | all of the above |
| | E) | none of these |
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