,
,Test Bank – Managerial Accounting for Managers, 2025 Release by Eric Noreen
Chap 01 2025 Release, Noreen
1 Which of the following statements are true?
1. A factory supervisor's salary would be classified as an indirect cost with respect to a
unitof product.
2. A direct cost is a cost that can be easily traced to the particular cost object
underconsideration.
3. A cost can be direct or indirect. The classification can change if the cost object changes.
A) Only statement 1 is true.
B) Statements 1 and 2 are true.
C) All of the statements are true.
D) None of the statements are true.
2) Which of the following statements are true?
1. Wages paid to production supervisors would be classified as manufacturing overhead.
2. Indirect costs, such as manufacturing overhead, are variable costs.
3. Selling costs are indirect costs.
4. Administrative costs are indirect costs.
A) Only statement 1 is true.
B) Statements 1 and 3 are true.
C) All statements are true.
D) None of the statements are true.
3) Which of the following statements are true?
1. The sum of all manufacturing costs except for direct materials and direct labor is
calledmanufacturing overhead.
2. The three cost elements ordinarily included in product costs are direct materials,
directlabor, and manufacturing overhead.
A) Only statement 1 is true.
B) Only statement 2 is true.
C) Both of the statements are true.
D) Neither of the statements are true.
, 4) Which of the following statements are true?
1. Depreciation is always considered a period cost for external financial reporting
purposesin a manufacturing company.
2. Depreciation on equipment a company uses in its selling and administrative
activitieswould be classified as a period cost.
A) Only statement 1 is true.
B) Only statement 2 is true.
C) Both of the statements are true.
D) Neither of the statements are true.
5) Which of the following statements are true?
1. Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
2. Conversion cost is the same thing as manufacturing overhead.
3. Conversion cost equals product cost less direct materials cost.
A) Only statement 1 is true.
B) Statements 1 and 3 are true.
C) All statements are true.
D) None of the statements are true.
6) Which of the following statements are true?
1. In a manufacturing company, all costs are period costs.
2. Selling and administrative expenses are period costs under generally accepted
accountingprinciples.
3. The cost of shipping parts from a supplier is considered a period cost.
A) Only statement 1 is true.
B) Only statement 2 is true.
C) Statements 1 and 2 are true.
D) Statements 1 and 3 are true.
3
,Test Bank – Managerial Accounting for Managers, 2025 Release by Eric Noreen
Chap 01 2025 Release, Noreen
1 Which of the following statements are true?
1. A factory supervisor's salary would be classified as an indirect cost with respect to a
unitof product.
2. A direct cost is a cost that can be easily traced to the particular cost object
underconsideration.
3. A cost can be direct or indirect. The classification can change if the cost object changes.
A) Only statement 1 is true.
B) Statements 1 and 2 are true.
C) All of the statements are true.
D) None of the statements are true.
2) Which of the following statements are true?
1. Wages paid to production supervisors would be classified as manufacturing overhead.
2. Indirect costs, such as manufacturing overhead, are variable costs.
3. Selling costs are indirect costs.
4. Administrative costs are indirect costs.
A) Only statement 1 is true.
B) Statements 1 and 3 are true.
C) All statements are true.
D) None of the statements are true.
3) Which of the following statements are true?
1. The sum of all manufacturing costs except for direct materials and direct labor is
calledmanufacturing overhead.
2. The three cost elements ordinarily included in product costs are direct materials,
directlabor, and manufacturing overhead.
A) Only statement 1 is true.
B) Only statement 2 is true.
C) Both of the statements are true.
D) Neither of the statements are true.
, 4) Which of the following statements are true?
1. Depreciation is always considered a period cost for external financial reporting
purposesin a manufacturing company.
2. Depreciation on equipment a company uses in its selling and administrative
activitieswould be classified as a period cost.
A) Only statement 1 is true.
B) Only statement 2 is true.
C) Both of the statements are true.
D) Neither of the statements are true.
5) Which of the following statements are true?
1. Conversion cost is the sum of direct labor cost and manufacturing overhead cost.
2. Conversion cost is the same thing as manufacturing overhead.
3. Conversion cost equals product cost less direct materials cost.
A) Only statement 1 is true.
B) Statements 1 and 3 are true.
C) All statements are true.
D) None of the statements are true.
6) Which of the following statements are true?
1. In a manufacturing company, all costs are period costs.
2. Selling and administrative expenses are period costs under generally accepted
accountingprinciples.
3. The cost of shipping parts from a supplier is considered a period cost.
A) Only statement 1 is true.
B) Only statement 2 is true.
C) Statements 1 and 2 are true.
D) Statements 1 and 3 are true.
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