Accounting 526 Midterm Exam
Identify a true statement about the controller of an b.The controller participates in the decision-making activity of managerial
organization. accounting.
a.The controller has only indirect responsibility for an
organization's basic objectives.
b.The controller participates in the decision-making
activity of managerial accounting.
c.The controller has full authority over the managers in
the production areas of an organization.
d.The controller is a member of the middle-level
management.
Managers in line positions are the ones who: implement the policies framed by the top management team.
An organizational chart: shows line and staff positions within an organization.
Accountants who hold a certificate that allows them to Certified Fraud Examiners.
conduct expert work to determine intentional errors and
mistakes made in the financial statements are called:
Which of the following is a certification designed to meet The Certificate in Management Accounting
the specific needs of managerial accountants?
Which of the following certifications do managerial d.All of these answer choices are correct.
accountants obtain?
a.The Certificate in Management Accounting
b.The Certificate in Public Accounting
c.The Certificate in Internal Auditing
d.All of these answer choices are correct.
Which of the following is an example of a variable cost? .Cost of direct materials
a.Cost of direct materials
b.Factory rent
c.Property tax
d.Depreciation on machinery
Cost allocation is: the process of assigning indirect costs to cost objects.
Which of the following costs forms a part of prime cost as d.The cost of direct labor
well as conversion cost?
a.The cost of direct materials and direct labor
b.The cost of direct materials
c.Manufacturing overhead
d.The cost of direct labor
During May, the cost of goods manufactured was d.$57,000
$62,000. The beginning finished goods inventory for the
month was $25,000, and the ending finished goods 62,000-30,000+25,000=57,000
inventory was $30,000. What was the cost of goods sold
for May?
a.$66,000
b.$117,000
c.$32,000
d.$57,000
the formula to calculate prime cost? Prime Cost = Direct Materials + Direct Labor
The ending inventories of materials, work-in-process, as current assets on the balance sheet.
and finished goods appear:
, Accounting 526 Midterm Exam
Which of the following items appear on the income d.Operating expenses
statement of a service firm?
a.Manufacturing overhead
b.Cost of goods sold
c.Gross margin
d.Operating expenses
Impact Corporation reported $440,000 of revenue for the a.$246,400.
year. Selling expenses amounted to $53,000, and
administrative expenses were $78,000. Cost of goods 440,000*.44=193,600
sold was 44% of revenue. Impact's gross margin is: 440,000-193,000=246,400
a.$246,400.
b.$309,000.
c.$193,600.
d.$362,000.
Super Co. manufactured 10,000 units and reported the c.$6.10.
following information for December:
Direct materials$36,000 36,000+25,000=61,000
Direct labor25,000 61,000/10,000=6.1
Manufacturing overhead35,000
Beginning work in process inventory28,000
Ending work in process inventory29,000
The prime cost per unit is:
a.$6.00.
b.$3.60.
c.$6.10.
d.$3.50.
Which of the following costs forms a part of prime cost as d.The cost of direct labor
well as conversion cost?
a.Manufacturing overhead
b.The cost of direct materials
c.The cost of direct materials and direct labor
d.The cost of direct labor
The cost of delivering a product to a customer is an d.a period cost.
example of:
a.a conversion cost.
b.manufacturing overhead.
c.a prime cost.
d.a period cost.
During May, the cost of goods manufactured was d.$54,000
$60,000. The beginning finished goods inventory for the
month was $22,000, and the ending finished goods 28,000-22,000=6,000
inventory was $28,000. What was the cost of goods sold 60,000-6,000=54,000
for May?
a.$110,000
b.$64,000
c.$32,000
d.$54,000
The cost of research and development activities is administrative cost.
classified as:
Wages paid to a factory supervisor are treated as: a product cost but not as a direct labor cost.
Direct material cost and direct labor cost are a part of: product costs.
Selling and administrative costs are treated as: period costs.
Identify a true statement about the controller of an b.The controller participates in the decision-making activity of managerial
organization. accounting.
a.The controller has only indirect responsibility for an
organization's basic objectives.
b.The controller participates in the decision-making
activity of managerial accounting.
c.The controller has full authority over the managers in
the production areas of an organization.
d.The controller is a member of the middle-level
management.
Managers in line positions are the ones who: implement the policies framed by the top management team.
An organizational chart: shows line and staff positions within an organization.
Accountants who hold a certificate that allows them to Certified Fraud Examiners.
conduct expert work to determine intentional errors and
mistakes made in the financial statements are called:
Which of the following is a certification designed to meet The Certificate in Management Accounting
the specific needs of managerial accountants?
Which of the following certifications do managerial d.All of these answer choices are correct.
accountants obtain?
a.The Certificate in Management Accounting
b.The Certificate in Public Accounting
c.The Certificate in Internal Auditing
d.All of these answer choices are correct.
Which of the following is an example of a variable cost? .Cost of direct materials
a.Cost of direct materials
b.Factory rent
c.Property tax
d.Depreciation on machinery
Cost allocation is: the process of assigning indirect costs to cost objects.
Which of the following costs forms a part of prime cost as d.The cost of direct labor
well as conversion cost?
a.The cost of direct materials and direct labor
b.The cost of direct materials
c.Manufacturing overhead
d.The cost of direct labor
During May, the cost of goods manufactured was d.$57,000
$62,000. The beginning finished goods inventory for the
month was $25,000, and the ending finished goods 62,000-30,000+25,000=57,000
inventory was $30,000. What was the cost of goods sold
for May?
a.$66,000
b.$117,000
c.$32,000
d.$57,000
the formula to calculate prime cost? Prime Cost = Direct Materials + Direct Labor
The ending inventories of materials, work-in-process, as current assets on the balance sheet.
and finished goods appear:
, Accounting 526 Midterm Exam
Which of the following items appear on the income d.Operating expenses
statement of a service firm?
a.Manufacturing overhead
b.Cost of goods sold
c.Gross margin
d.Operating expenses
Impact Corporation reported $440,000 of revenue for the a.$246,400.
year. Selling expenses amounted to $53,000, and
administrative expenses were $78,000. Cost of goods 440,000*.44=193,600
sold was 44% of revenue. Impact's gross margin is: 440,000-193,000=246,400
a.$246,400.
b.$309,000.
c.$193,600.
d.$362,000.
Super Co. manufactured 10,000 units and reported the c.$6.10.
following information for December:
Direct materials$36,000 36,000+25,000=61,000
Direct labor25,000 61,000/10,000=6.1
Manufacturing overhead35,000
Beginning work in process inventory28,000
Ending work in process inventory29,000
The prime cost per unit is:
a.$6.00.
b.$3.60.
c.$6.10.
d.$3.50.
Which of the following costs forms a part of prime cost as d.The cost of direct labor
well as conversion cost?
a.Manufacturing overhead
b.The cost of direct materials
c.The cost of direct materials and direct labor
d.The cost of direct labor
The cost of delivering a product to a customer is an d.a period cost.
example of:
a.a conversion cost.
b.manufacturing overhead.
c.a prime cost.
d.a period cost.
During May, the cost of goods manufactured was d.$54,000
$60,000. The beginning finished goods inventory for the
month was $22,000, and the ending finished goods 28,000-22,000=6,000
inventory was $28,000. What was the cost of goods sold 60,000-6,000=54,000
for May?
a.$110,000
b.$64,000
c.$32,000
d.$54,000
The cost of research and development activities is administrative cost.
classified as:
Wages paid to a factory supervisor are treated as: a product cost but not as a direct labor cost.
Direct material cost and direct labor cost are a part of: product costs.
Selling and administrative costs are treated as: period costs.
