Test Bank
for
Managerial
Accounting
for Managers
5th Edition
By Noreen
,Managerial Accounting for Managers, 5e (Noreen)
Chapter 1 Managerial Accounting and Cost Concepts
1) A factory supervisor's salary would be classified as an indirect cost with respect to
a unit of product.
Answer: TRUE
Difficulty: 2 Medium
Topic: Cost Classifications for Assigning Costs to Cost Objects
Learning Objective: 01-01 Understand cost classifications used for assigning
costs to cost objects: direct costs and indirect costs.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
2) A direct cost is a cost that can be easily traced to the particular cost
object under consideration.
Answer: TRUE
Difficulty: 1 Easy
Topic: Cost Classifications for Assigning Costs to Cost Objects
Learning Objective: 01-01 Understand cost classifications used for assigning
costs to cost objects: direct costs and indirect costs.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
3) A cost can be direct or indirect. The classification can change if the cost object changes.
Answer: TRUE
Difficulty: 2 Medium
Topic: Cost Classifications for Assigning Costs to Cost Objects
Learning Objective: 01-01 Understand cost classifications used for assigning
costs to cost objects: direct costs and indirect costs.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
, 4) zWages zpaid zto zproduction zsupervisors zwould zbe zclassified zas zmanufacturing
zoverhead.
Answer: z zTRUE
Difficulty: z1 zEasy
Topic: z zCost zClassifications zfor zManufacturing zCompanies
Learning zObjective: z01-02 zIdentify zand zgive zexamples zof zeach zof zthe zthree zbasic
zmanufacturing zcost zcategories.
Bloom's: zUnderstand
zAACSB: zReflective
zThinking
AICPA: zBB zCritical zThinking; zFN
zMeasurement z5) zSelling zcosts zare zindirect
zcosts.
Answer: zFALSE
zDifficulty: z2
zMedium
Topic: z zCost zClassifications zfor zManufacturing zCompanies
Learning zObjective: z01-02 zIdentify zand zgive zexamples zof zeach zof zthe zthree zbasic
zmanufacturing zcost zcategories.
Bloom's: zRemember
zAACSB: zReflective
zThinking
AICPA: BB zCritical zThinking; zFN zMeasurement
6) zThe zsum zof zall zmanufacturing zcosts zexcept zfor zdirect zmaterials zand zdirect
zlabor zis zcalled zmanufacturing zoverhead.
Answer: zTRUE
zDifficulty: z2
zMedium
Topic: z zCost zClassifications zfor zManufacturing zCompanies
Learning zObjective: z01-02 zIdentify zand zgive zexamples zof zeach zof zthe zthree zbasic
zmanufacturing zcost zcategories.
Bloom's: zUnderstand
zAACSB: zReflective
zThinking
AICPA: BB zCritical zThinking; zFN zMeasurement
7) zThe zthree zcost zelements zordinarily zincluded zin zproduct zcosts zare zdirect
zmaterials, zdirect zlabor, zand zmanufacturing zoverhead.
Answer: z zTRUE
Difficulty: z1 zEasy
Topic: z zCost zClassifications zfor zManufacturing zCompanies
for
Managerial
Accounting
for Managers
5th Edition
By Noreen
,Managerial Accounting for Managers, 5e (Noreen)
Chapter 1 Managerial Accounting and Cost Concepts
1) A factory supervisor's salary would be classified as an indirect cost with respect to
a unit of product.
Answer: TRUE
Difficulty: 2 Medium
Topic: Cost Classifications for Assigning Costs to Cost Objects
Learning Objective: 01-01 Understand cost classifications used for assigning
costs to cost objects: direct costs and indirect costs.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
2) A direct cost is a cost that can be easily traced to the particular cost
object under consideration.
Answer: TRUE
Difficulty: 1 Easy
Topic: Cost Classifications for Assigning Costs to Cost Objects
Learning Objective: 01-01 Understand cost classifications used for assigning
costs to cost objects: direct costs and indirect costs.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
3) A cost can be direct or indirect. The classification can change if the cost object changes.
Answer: TRUE
Difficulty: 2 Medium
Topic: Cost Classifications for Assigning Costs to Cost Objects
Learning Objective: 01-01 Understand cost classifications used for assigning
costs to cost objects: direct costs and indirect costs.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
, 4) zWages zpaid zto zproduction zsupervisors zwould zbe zclassified zas zmanufacturing
zoverhead.
Answer: z zTRUE
Difficulty: z1 zEasy
Topic: z zCost zClassifications zfor zManufacturing zCompanies
Learning zObjective: z01-02 zIdentify zand zgive zexamples zof zeach zof zthe zthree zbasic
zmanufacturing zcost zcategories.
Bloom's: zUnderstand
zAACSB: zReflective
zThinking
AICPA: zBB zCritical zThinking; zFN
zMeasurement z5) zSelling zcosts zare zindirect
zcosts.
Answer: zFALSE
zDifficulty: z2
zMedium
Topic: z zCost zClassifications zfor zManufacturing zCompanies
Learning zObjective: z01-02 zIdentify zand zgive zexamples zof zeach zof zthe zthree zbasic
zmanufacturing zcost zcategories.
Bloom's: zRemember
zAACSB: zReflective
zThinking
AICPA: BB zCritical zThinking; zFN zMeasurement
6) zThe zsum zof zall zmanufacturing zcosts zexcept zfor zdirect zmaterials zand zdirect
zlabor zis zcalled zmanufacturing zoverhead.
Answer: zTRUE
zDifficulty: z2
zMedium
Topic: z zCost zClassifications zfor zManufacturing zCompanies
Learning zObjective: z01-02 zIdentify zand zgive zexamples zof zeach zof zthe zthree zbasic
zmanufacturing zcost zcategories.
Bloom's: zUnderstand
zAACSB: zReflective
zThinking
AICPA: BB zCritical zThinking; zFN zMeasurement
7) zThe zthree zcost zelements zordinarily zincluded zin zproduct zcosts zare zdirect
zmaterials, zdirect zlabor, zand zmanufacturing zoverhead.
Answer: z zTRUE
Difficulty: z1 zEasy
Topic: z zCost zClassifications zfor zManufacturing zCompanies
