Managerial Accounting Exam 1
WileyPlus| questions with complete
solutions
Which one of the following does not appear on the balance sheet of a
manufacturing company?
Finished goods inventory
Work in process inventory
Raw materials inventory
Cost of goods manufactured - ANSWER-Cost of goods manufactured
The wages of a timekeeper in the factory would be classified as
a period cost.
direct labor.
indirect labor.
,compliance costs. - ANSWER-indirect labor.
Managerial accounting applies to each of the following types of businesses except
managerial accounting applies to all types of firms.
service firms.
merchandising firms.
manufacturing firms. - ANSWER-managerial accounting applies to all types of
firms.
Managerial accounting applies to all forms of business organizations.
True
False - ANSWER-True
Direct materials and direct labor are the only product costs.
True
,False - ANSWER-False
Which one of the following is not a direct material?
Plastic used in the covered case for a home PC
Steel used in the manufacturing of steel-radial tires
A tire used for a lawn mower
Lubricant for a ball-bearing joint for a large crane - ANSWER-Lubricant for a ball-
bearing joint for a large crane
Because of automation, which component of product cost is declining?
Advertising
Direct materials
Direct labor
Manufacturing overhead - ANSWER-Direct labor
, Management accountants would not
assist in budget planning.
prepare reports primarily for external users.
determine cost behavior.
be concerned with the impact of cost and volume on profits. - ANSWER-prepare
reports primarily for external users.
Determining the unit cost of manufacturing a product is an output of financial
accounting.
True
False - ANSWER-False
When the physical association of raw materials with the finished product is too
small to trace in terms of cost, they are usually classified as indirect materials.
True
WileyPlus| questions with complete
solutions
Which one of the following does not appear on the balance sheet of a
manufacturing company?
Finished goods inventory
Work in process inventory
Raw materials inventory
Cost of goods manufactured - ANSWER-Cost of goods manufactured
The wages of a timekeeper in the factory would be classified as
a period cost.
direct labor.
indirect labor.
,compliance costs. - ANSWER-indirect labor.
Managerial accounting applies to each of the following types of businesses except
managerial accounting applies to all types of firms.
service firms.
merchandising firms.
manufacturing firms. - ANSWER-managerial accounting applies to all types of
firms.
Managerial accounting applies to all forms of business organizations.
True
False - ANSWER-True
Direct materials and direct labor are the only product costs.
True
,False - ANSWER-False
Which one of the following is not a direct material?
Plastic used in the covered case for a home PC
Steel used in the manufacturing of steel-radial tires
A tire used for a lawn mower
Lubricant for a ball-bearing joint for a large crane - ANSWER-Lubricant for a ball-
bearing joint for a large crane
Because of automation, which component of product cost is declining?
Advertising
Direct materials
Direct labor
Manufacturing overhead - ANSWER-Direct labor
, Management accountants would not
assist in budget planning.
prepare reports primarily for external users.
determine cost behavior.
be concerned with the impact of cost and volume on profits. - ANSWER-prepare
reports primarily for external users.
Determining the unit cost of manufacturing a product is an output of financial
accounting.
True
False - ANSWER-False
When the physical association of raw materials with the finished product is too
small to trace in terms of cost, they are usually classified as indirect materials.
True
