Practice Exam 1 Managerial Accounting Verified Exam Questions and
Answers Latest update 2026/2027
Question:
Conversion cost is the sum of direct materials costs and direct labor costs
Answer:
False
Question:
Raw materials inventory should not include indirect materials
Answer:
False
Question:
Indirect costs are costs that cannot be effectively traced to a cost object
Answer:
True
Question:
Just in time manufacturing stresses building up large amounts of inventory in advance of customers
orders
Answer:
False
Question:
Both financial and managerial accounting follow concepts and rules known as generally accepted
accounting principles to provide consistency and comparability of financial statements across
companies
Answer:
False
Question:
The focus of managerial accounting information is on the organization as a whole
Answer:
False
, Question:
Beg finished goods inc plus cost of good manufactured equals total finished goods available for sale
Answer:
True
Question:
Direct materials are materials used in manufacturing that cannot be cost effectively traced to finished
goods
Answer:
False
Question:
Product costs are capitalized as inv on the balance sheet and period costs are expenses on the income
statement
Answer:
True
Question:
The raw materials inv turnover ratio is raw materials purchased divided by the average raw materials
inv
Answer:
False
Question:
Product costs are refer to expenditures necessary to manufacture products and to administrative
support during the time period
Answer:
False
Question:
The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the
merchandiser includes cost of goods manufactured rather than cost of food purchased
Answer:
False
Question:
The salary of a manufacturing supervisor who monitors production is an example of a direct cost
Answer:
False
Answers Latest update 2026/2027
Question:
Conversion cost is the sum of direct materials costs and direct labor costs
Answer:
False
Question:
Raw materials inventory should not include indirect materials
Answer:
False
Question:
Indirect costs are costs that cannot be effectively traced to a cost object
Answer:
True
Question:
Just in time manufacturing stresses building up large amounts of inventory in advance of customers
orders
Answer:
False
Question:
Both financial and managerial accounting follow concepts and rules known as generally accepted
accounting principles to provide consistency and comparability of financial statements across
companies
Answer:
False
Question:
The focus of managerial accounting information is on the organization as a whole
Answer:
False
, Question:
Beg finished goods inc plus cost of good manufactured equals total finished goods available for sale
Answer:
True
Question:
Direct materials are materials used in manufacturing that cannot be cost effectively traced to finished
goods
Answer:
False
Question:
Product costs are capitalized as inv on the balance sheet and period costs are expenses on the income
statement
Answer:
True
Question:
The raw materials inv turnover ratio is raw materials purchased divided by the average raw materials
inv
Answer:
False
Question:
Product costs are refer to expenditures necessary to manufacture products and to administrative
support during the time period
Answer:
False
Question:
The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the
merchandiser includes cost of goods manufactured rather than cost of food purchased
Answer:
False
Question:
The salary of a manufacturing supervisor who monitors production is an example of a direct cost
Answer:
False
