Managerial Accounting Exam #1 Verified Exam Questions and Answers Latest update 2026/2027

Managerial Accounting Exam #1 Verified Exam Questions and Answers
Latest update 2026/2027

Question:
Product costs are...

Answer:
Inventoried

Question:
Which of the following would NOT be classified as a product cost?
A. Direct materials
B. Direct labor
C. Indirect materials
D. Insurance on a manufacturing plant
E. Sales commissions

Answer:
Sales commissions

Question:
Costs that are expensed when incurred are called...

Answer:
Period costs

Question:
Which of the following is a period cost?
A. Direct material
B. Advertising expense
C. Indirect labor
D. Miscellaneous supplies used in production activities
E. Advertising expense and indirect labor

Answer:
Advertising expense

, Question:
Which of the following is NOT a period cost?
A. Legal costs
B. Public relations costs
C. Sales commissions
D. Wages of assembly-line workers
E. The salary of a company's chief financial officer (CFO)

Answer:
Wages of assembly line-workers

Question:
Which of the following entities would most likely have raw materials, work in process, and finished
goods?
A. Exxon Corporation
B. Macy's Department Store
C. Wendy's
D. Southwest Airlines
E. Columbia University

Answer:
Exxon Corporation Selling and administrative expenses would likely appear on the balance sheet of:
A. The Gap
B. Texas Instruments
C. Turner Broadcasting System
D. All of these firms

Question:
E. None of these firms

Answer:
None of these firms

Question:
Which of the following inventories would a discount retailer such as Walmart report as an asset?

Answer:
Merchandise inventory

Question:
Which of the following inventories would a company ordinarily hold for sale?

Answer:
Finished goods