A306 Test 1- Technical Exam Questions
with Correct Answers
Which of the following statements is false?
a. Creditors would be a user of financial accounting information.
b. Management accounting information is used to develop budgets.
c. Financial accounting information emphasizes decisions for the future.
d. Reports based on management accounting information are created when required. -
Answer-c. Financial accounting information emphasizes decisions for the future.
Which statement best describes management accounting?
A. Management accounting is mainly focused on past results.
B. Management accounting reports are rules based using GAAP.
C. The main users of Management accounting information are outside the firm.
D. Management accounting reports are prepared following the National Management
Accounting Standards (NMAS)
E. Management accounting is primarily used for decision making. - Answer-E.
Management accounting is primarily used for decision making.
What is the formula for;
Net Operating Income (NOI) - Answer-(Revenue)-(Costs)=Net Operating Income
Manufacturing costs or Non-manufacturing & Prime or Conversion Costs
Ingredients
Salary for Director of PR
Property Taxes on factory
Indirect Production Labor - Answer-Ingredients
- MFG & Prime
Salary for Director of PR
- Non-MFG, N/A
Property Taxes on factory
- MFG & Conversion
Indirect Production Labor
- Mfg & Conversion
Which of the following statements is false?
a. Prime costs are always direct costs.
b. Manufacturing costs can be direct or indirect.
, c. Selling & Admin costs are only indirect.
d. Direct labor is both a prime cost & a conversion cost. - Answer-c. Selling & Admin
costs are only indirect.
Product or Period Cost & Inventoriable (yes or no)
Ingredients
Sales Commissions - Answer-Ingredients
- Product/Yes
Sales Commissions
- Period, No
With respect to the number of pints produced identify as Var/Fix/Mix costs
Cream, Milk, sugar
Depreciation on freezers
Sales Commission
Indirect Production labor
Shipping to customer - Answer-Cream, Milk, sugar
- Var
Depreciation on freezers
- Fixed
Sales Commission
- Var
Indirect Production labor
- Var
Shipping to customer
- Mixed
Which is your favorite Ben & Jerry's ice cream flavor?
a. Vanilla.
b. Chunky monkey.
c. Non-dairy chocolate fudge brownie.
d. Cherry Garcia.
e. Half baked - Answer-b. Chunky monkey
During the month of April, direct labor cost totaled $16,000 and direct labor cost was
50% of prime cost. If total manufacturing costs during April were $78,000, the
manufacturing overhead was:
A. $62,000
B. $32,000
C. $46,000
D. $16,000 - Answer-C. $46,000
with Correct Answers
Which of the following statements is false?
a. Creditors would be a user of financial accounting information.
b. Management accounting information is used to develop budgets.
c. Financial accounting information emphasizes decisions for the future.
d. Reports based on management accounting information are created when required. -
Answer-c. Financial accounting information emphasizes decisions for the future.
Which statement best describes management accounting?
A. Management accounting is mainly focused on past results.
B. Management accounting reports are rules based using GAAP.
C. The main users of Management accounting information are outside the firm.
D. Management accounting reports are prepared following the National Management
Accounting Standards (NMAS)
E. Management accounting is primarily used for decision making. - Answer-E.
Management accounting is primarily used for decision making.
What is the formula for;
Net Operating Income (NOI) - Answer-(Revenue)-(Costs)=Net Operating Income
Manufacturing costs or Non-manufacturing & Prime or Conversion Costs
Ingredients
Salary for Director of PR
Property Taxes on factory
Indirect Production Labor - Answer-Ingredients
- MFG & Prime
Salary for Director of PR
- Non-MFG, N/A
Property Taxes on factory
- MFG & Conversion
Indirect Production Labor
- Mfg & Conversion
Which of the following statements is false?
a. Prime costs are always direct costs.
b. Manufacturing costs can be direct or indirect.
, c. Selling & Admin costs are only indirect.
d. Direct labor is both a prime cost & a conversion cost. - Answer-c. Selling & Admin
costs are only indirect.
Product or Period Cost & Inventoriable (yes or no)
Ingredients
Sales Commissions - Answer-Ingredients
- Product/Yes
Sales Commissions
- Period, No
With respect to the number of pints produced identify as Var/Fix/Mix costs
Cream, Milk, sugar
Depreciation on freezers
Sales Commission
Indirect Production labor
Shipping to customer - Answer-Cream, Milk, sugar
- Var
Depreciation on freezers
- Fixed
Sales Commission
- Var
Indirect Production labor
- Var
Shipping to customer
- Mixed
Which is your favorite Ben & Jerry's ice cream flavor?
a. Vanilla.
b. Chunky monkey.
c. Non-dairy chocolate fudge brownie.
d. Cherry Garcia.
e. Half baked - Answer-b. Chunky monkey
During the month of April, direct labor cost totaled $16,000 and direct labor cost was
50% of prime cost. If total manufacturing costs during April were $78,000, the
manufacturing overhead was:
A. $62,000
B. $32,000
C. $46,000
D. $16,000 - Answer-C. $46,000
