CRM 101 FINAL EXAM QUESTIONS

CRM 101 FINAL EXAM QUESTIONS 37. Managerial accounting a. is concerned with costing products. b. is governed by generally accepted accounting principles. c. pertains to the entity as a whole and is highly aggregated. d. places emphasis on special-purpose information. 38. Managerial accounting information is generally prepared for a. stockholders. b. managers. c. regulatory agencies. d. investors. 39. Managerial accounting information a. pertains to the entity as a whole and is highly aggregated. b. must be prepared according to generally accepted accounting principles. c. pertains to subunits of the entity and may be very detailed. d. is prepared only once a year. 40. The major reporting standard for management accounting is a. the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management. b. the Sarbanes-Oxley Act of 2002. c. relevance to decisions. d. generally accepted accounting principles. 41. Managerial accounting is also called a. inside reporting. b. cost accounting. c. management accounting. d. strategic management. 42. Which of the following is not an internal user? a. Corporate officers b. Staff employees c. Stockholders d. Department manager 43. Which of the following is not part of managerial accounting? a. Determining whether planned goals are being met b. Reporting financial information to the shareholders c. Calculating product costs d. Controlling costs 44. Which of the following uses managerial accounting? a. Manufacturing and service entities, but not merchandising b. Profit-oriented businesses only c. Service, manufacturing, and merchandising entities d. Only manufacturing entities 45. Which one of the following tasks would not be performed by a management accountant? a. Being concerned with the impact of cost and volume on profits b. Strategic cost management c. Assisting in budget planning d. Preparing reports primarily for external users 46. How often are internal managerial reports communicated? a. As frequently as needed b. Annually c. During every audit by the company’s CA d. Monthly 47. Which description identifies financial statements that are prepared for external users? a. External reports b. Special-purpose c. User-specific d. General-purpose 48. Which term describes managerial accounting reports? a. GAAP reports b. Special-purpose c. General-purpose d. Regulatory reports 49. Which of the following statements about internal reports is true? a. Most internal reports are summarized rather than detailed. b. Internal reports focus on general purpose needs of users. c. The content of internal reports extends beyond the double-entry accounting system. d. Internal reports are often very general. 50. Which one of the following describes internal reports? a. They are often audited by CAs. b. They must be prepared according to GAAP. c. They are aggregated. d. They are detailed. 51. Which of the following reports would management find useful in decision making? a. Monthly reports on activities to the Board of Directors b. Quarterly reporting to the Toronto Stock Exchange c. Specific purpose statements on services delivered d. Audited financial information in the annual report to shareholders 52. How often should management receive or prepare reports on its internal process activities? a. On a fixed time basis b. As often as is necessary c. Never more than monthly d. Weekly 53. How often should management receive or prepare reports on its external business process activities? a. As they correspond to external financial reporting b. Never more than monthly c. According to the company’s business cycle d. As often as is necessary 54. A company must inform readers of its annual report of: a. All changes in financial accounting policies. b. Results of any overseas activities. c. All changes in internal accounting information. b. Changes to management’s bonus system. 55. How could management information assist in motivating its employees? a. Keeping track of quality improvements b. Showing the company’s percent of market share c. Showing statistics on plant safety d. All areas would benefit from providing internal management information 56. In establishing a good internal reporting system, a company should: a. Ensure that these reports agree to generally accepted accounting principles. b. Have the Board of Directors agree to the information provided. c. Establish clearly understood standards of performance. d. All of the above are valid reasons. 57. What broad functions do the management of an organization perform? a. Directing, manufacturing, and controlling b. Planning, directing, and controlling c. Planning, directing, and selling d. Planning, manufacturing and controlling 58. Which one of the following involves coordinating a company’s activities to produce a smooth- running operation? a. Auditing b. Controlling c. Planning d. Directing 59. Which one of the following does the planning function involve? a. Analyzing financial statements b. Setting goals and objectives for an entity c. Hiring the right people for a particular job d. Coordinating the accounting information system 60. Which one of the following is true concerning the managerial function of controlling? a. It includes performance evaluation by management. b. It is concerned mainly with operating a manufacturing segment. c. It is performed only by the controller of a company. d. It includes hiring and training employees. 61. Which of the following represents two management functions? a. Regulating and directing b. Controlling and directing c. Controlling and auditing d. Auditing and planning 62. Which management function is a manager performing when objectives are being established? a. Regulating b. Planning c. Motivating d. Directing 63. The organization chart of a company shows: a. the interrelationships of activities within a company. b. the delegation of authority within a company. c. the delegation of responsibility within a company. d. all of the above. 64. Which function is achieved when a manager is determining whether planned goals are being met? a. Controlling b. Motivating c. Planning d. Directing 65. What activities and responsibilities are not associated with management’s functions? a. Planning b. Accountability c. Controlling d. Directing 66. Directing includes a. providing a framework for management to have criteria to terminate employees when needed. b. running a department under quality control standards universally accepted. c. coordinating a company’s diverse activities and human resources to produce a smooth- running operation. d. developing a performance ranking system to give certain high performers good raises. 67. Which of the following is true? a. Managerial accountants are the employees who are principally responsible for ethical behaviour. b. Investment losses have been precipitated by lax ethical standards. c. Corporate fraud was found to have decreased between the years 1998 and 2003. d. Expense account abuse has been cited as one of the rarest forms of unethical employee behaviour. 68. Choose the incorrect answer. a. While generally not encouraged, lapses in ethical behaviour are irrelevant to a company’s operating income. b. Proper incentives need to be implemented to foster an ethical business environment. c. Manufacturing companies need to establish effective and realistic production goals for their processes. d. As a result of the Sarbanes-Oxley Act, companies now pay more attention to the composition of the board of directors. 69. Which is the best definition of fraud? a. Unknowingly misrepresenting the facts b. Using business supplies for personal use c. The intentional misstatement of facts d. Misappropriating funds for personal financial gain 70. Which of the following is true? a. Dissatisfied employees cite a decline in ethical behaviour is a result of a change in corporate culture. b. Unethical corporate behaviour occurs only in the United States because of its capitalistic environment. c. Unethical behaviour rarely causes a decline in investor confidence. d. Unethical actions are reasonable in an environment wherein unreasonable budgets and targets have been set. 71. The production manager at ABC Inc. is responsible for formulating the budget for his department. He will be evaluated on his ability to control costs. After considerable thought, he arrives at his best estimate of costs, and then adds a further 10% to the projections. Chances are he has inflated the cost projections because a. that is the way it has always been done. b. conservative accounting practise requires that he not under report expenses. c. by overestimating expenses, it will make it easier for him to come in under budget and receive a favourable evaluation. d. none of the above. 72. In Canada, which of the following professional accounting organizations play an important role in promoting high standards of ethics in the accounting profession? a. The Society of Management Accountants of Canada b. The Canadian Institute of Chartered Accountants c. The Certified General Accountants Association of Canada d. All of the above 73. The Ontario Securities Commission introduced regulations governing the composition and duties of audit committees, as well as their members’ behaviour. The new rules: a. are as robust as parallel rules required by the U.S. Sarbanes-Oxley Act. b. were adopted by all provincial and territorial securities regulators, except for British Columbia’s. c. were introduced in conjunction with the Canadian Securities Administrators. d. all of the above. 74. A company acting ethically must adapt its external reports to any changes required: a. Instantly. b. As it is appropriate for its business cycle. c. As stipulated by the CICA. d. If they are considered pertinent to its business activities. 75. A company acting ethically must adapt its internal reports to any changes required: a. Instantly. b. As it is appropriate for its business cycle. c. As stipulated by the CICA. d. If they are considered pertinent to its business activities. 76. Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion? a. Theory of constraints b. Just-in-time inventory c. Activity-based costing d. Total-quality management 77. Which one of the following is not a main component of the value chain sequence? a. ERP b. Sales and marketing c. Production d. Customer relations 78. What is one primary benefit of an enterprise resource planning (ERP) system? a. It reduces inventory levels. b. It permits companies to be more streamlined in production. c. It replaces research and development in a company. d. It requires an increased emphasis on product quality. 79. One of the advantages of a just in time inventory system is that it reduces inventory quantities. Why is this considered to be a benefit? a. Carrying inventory incurs storage costs, hence reducing inventory quantities reduces costs. b. Carrying large inventory raises the risk that customers will want an item that you do not have. c. Carrying large inventory reduces the risk that customers will want an item that you do not have. d. None of the above. 80. What is “balanced” in the balanced scorecard approach? a. The number of products produced b. The emphasis on financial and non-financial performance measurements c. The amount of costs allocated to products d. The number of defects found on each product 81. For what purpose is the theory of constraints used? a. To reduce product defects b. To balance performance measurement c. To identify and manage constraints that bottle-neck operations d. To reduce inventory levels 82. In Canada the three different professional accounting designations are a. CPA, CA, CMA b. CMA, CGA, CPA c. CA, CMA, CGA d. MA, CPA, CA 83. Which of the following is not required to become a CMA? a. Completion of a university degree b. Candidates must pass an entrance exam into the CMA program c. Completion of a two-year strategic leadership program concurrently with gaining industry experience d. Completion of a national exit exam. 84. Choose the correct statement. a. CGA stands for Certified Generic Accountant. b. CMA stands for Certified Managing Accountant. c. CA stands for Chartered Accountant. d. CPA stands for Certified Professional Accountant. 85. Which of the following statements is true? a. In recent decades, the Canadian economy in general has shifted towards an emphasis on providing services rather than goods. This trend has reduced the importance of managerial accounting. b. In recent decades, the Canadian economy in general has shifted towards an emphasis on providing goods rather than services. This trend has reduced the importance of managerial accounting. c. In recent decades, the Canadian economy in general has shifted towards an emphasis on providing services rather than goods. This trend has NOT reduced the importance of managerial accounting. d. In recent decades, the Canadian economy in general has shifted towards an emphasis on providing goods rather than services. This trend has NOT reduced the importance of managerial accounting. 86. Which statement is correct? a. All three of Canada’s professional accounting designations require completion of a university degree in accounting. b. All three of Canada’s professional accounting designations require completion of some post-secondary education. c. The educational requirements of the three professional accounting designations focus on broadly-based accounting and financial management concepts. d. Each of the three professional accounting bodies publishes its own magazine to promote the interests of its membership. 87. Though their areas of specialization overlap, which of the three bodies of professionally designated accountants would be best to engage for implementation of an activity-based costing inventory system? a. Chartered Accountant b. Certified General Accountant c. Certified Public Accountant d. Certified Management Accountant 88. What term describes all activities associated with providing a product or service? a. The manufacturing chain b. The product chain c. The supply chain d. The value chain 89. How do most companies manage their value chain? a. By using activity-based costing b. By creating enterprise resource planning systems c. Using an action plan d. Using total quality management systems 90. How have many companies significantly lowered inventory levels and costs? a. They use activity-based costing. b. They utilize an enterprise resource planning system. c. They have a just-in-time method. d. They focus on a total quality management system. 91. Some companies implement systems to reduce defects in finished products with the goal of achieving zero defects. What are these systems called? a. Activity-based costing systems b. Enterprise resource planning systems c. Value chain systems d. Total quality management systems 92. In order to obtain more accurate product costs, how do many companies allocate overhead? a. They use activity-based costing. b. They use enterprise resource planning systems. c. They use just-in-time methods. d. They use total quality management systems. 93. Many companies now manufacture products that are untouched by human hands. What do they use to achieve this? a. Activity-based costing b. Computer-integrated manufacturing c. Enterprise resource planning systems d. Total quality management systems 94. Which one of the following characteristics would likely be associated with a Just-In-Time inventory method? a. Ending inventory of work in process that would allow several production runs b. A backlog of inventory orders not yet shipped c. Minimal finished goods inventory on hand d. An understanding with customers that they may come to the showroom and select from inventory on hand 95. What is value chain management best defined as? a. A large chain that keeps the machines from falling on the production floor b. Management decisions that affect how quickly the production run occurs c. The incremental value of costs associated with hiring a new production floor leader d. All activities associated with providing a product or service 96. Which one of the following is an example of activity-based costing? a. Monitoring the salaries of managers that do untimely quality control checks b. Keeping close track of shrinkage associated with thefts off the showroom floor c. Insuring that management is closely working with the local union on keeping labour costs in line d. Allocating the set up cost associated with getting a machine ready for a production run 97. Bottlenecks are: a. The point at which the finished product leaves the factory. b. Constraints that limit the company’s potential profitability. c. The point at which a company’s plan is put into action. d. Are factors that consume a great deal of managers’ attention, but have little impact on the company as a whole. 98. For what reason is a product cost primarily tracked? a. To keep up with current cost trends to bring products to arket b. To effectively allocate the cost of products to measure profitability c. To determine what amounts are necessary for allocating overhead d. To keep management’s bonuses increasing every year 99. Which one of the following is an activity not associated with TQM? a. Tightening the bolts on a chassis so that the frame will not drop out b. Redesigning the gas tank after learning fuel efficiency standards are not being met c. Verifying the 10 check points associated with producing the highest quality loaf of bread d. Ensuring that the mattress just manufactured meets the standard of comfort of a random factory line worker 100. The theory of constraints is a. a theory that the benefit of making a change in a production process should be weighed against the cost of making that change. b. that even the best suggestions for improvement are likely to be rejected due to opposition from those who have to implement the changes. c. a specific approach used to identify and manage constraints in order to achieve the company’s goals. d. not applicable to service operations. 101. What is ERP? a. Efficient resource procurement b. Earnings reporting policies c. Enterprise resource planning d. Effective resource procurement 102. A balanced scorecard is a. a performance-measurement approach that uses both financial and non-financial measures to evaluate a company’s operations in an integrated way. b. a tool used to measure the benefits and costs of implementing a new strategy. c. used only by small organizations that cannot afford more expensive methods of evaluating their operations. d. focuses on non-financial measures in order to balance the many other financial reports companies use to evaluate their operations. 103. Which component of a company’s value chain would benefit most from internal management information? a. Complaints from its customers over services offered b. Bonuses paid to managers of the company c. The company’s efforts to develop new services d. All such components would benefit from internal management information 104. Managerial accounting has become more important in service industries due to: a. The decline of the manufacturing sector has freed up many accountants. b. Service delivery is extremely complex and requires proper monitoring. c. The economy has become more service-oriented recently. d. The increase in complexity in computer systems requires accounting specialists. 105. The five steps in the lean thinking model, in order are: a. 1) Define value, 2) Identify the pull factors, 3) Identify the value stream, 4) make the value stream flow, 5) revise until perfection is achieved. b. 1) Define value, 2) Identify the value stream, 3) make the value stream flow, 4) Implement a pull system, 5) Strive for perfection. c. 1) Identify unproductive activities that need to be reduced, 2) Identify push factors causing those unproductive activities, 3) develop operations so that the work flows smoothly, 4) strive for perfection, 5) Evaluate the value that has been added. d. 1) Identify push factors, 2) develop strategies to turn those factors into pull factors, 3) Assess the value added by steps one and two, 4) Strive for perfection, 5) Repeat the process on a regular basis. 106. Step one in the lean thinking model requires: a. Target costing, that is determining the acceptable cost the customer is willing to pay. b. An assessment of the potential value that can be added to the firm by adopting the lean manufacturing concept. c. Identifying processes that do not add value to the manufacturing process. d. Identifying push factors that can be converted to pull factors. 107. Step two in the lean thinking model: a. Deals with push and pull factors. b. is the central element in understanding how a company can evaluate what is value- added and what is waste. c Is always the most time consuming. e. Can be excluded if step one is done correctly. MULTIPLE CHOICE QUESTIONS 34. In which of the following categories do indirect materials belong? Product Cost Manufacturing Overhead Period Cost a. No No Yes b. Yes No No c. Yes Yes No d. Yes Yes Yes 35. Which one of the following is indirect labour considered? a. Product cost b. Nonmanufacturing cost c. Period cost d. Raw material cost 36. Which one of the following costs would be included in manufacturing overhead of a lawn mower manufacturer? a. The cost of the wheels b. The cost of the fuel lines that run from the motor to the gas tank c. Depreciation on the testing equipment d. The wages earned by motor assemblers 37. Which of the following would most likely be included in manufacturing overhead? a. Rent on the company’s store b. Insurance on a delivery truck c. Rent on the company’s factory d. an oil change on a delivery truck 38. For 2012, Sparkman Company has cost of goods manufactured of $500,000, beginning finished goods inventory of $25,000, and ending finished goods inventory of $20,000. How much is cost of goods sold? e. $505,000 f. $495,000 g. $545,000 h. $455,000 39. Which beginning and ending inventories appear on a cost of goods manufactured schedule? a. Raw materials only b. Raw materials and work in process only c. Raw materials, work in process, and finished goods d. Work in process only 40. Which of the following represents the correct order in which inventories are reported on a manufacturer’s balance sheet? a. Raw materials, work in process, finished goods b. Work in process, finished goods raw materials c. Finished goods, work in process, raw materials d. Work in process, raw materials, finished goods 41. Into which one of the following accounts would the work of factory employees, that can be physically and directly associated with converting raw materials into finished goods, be categorized? a. Direct labour b. Indirect labour c. Manufacturing overhead d. Indirect materials 42. Which one of the following would not be classified as manufacturing overhead? a. Indirect materials b. Insurance on factory building c. Indirect labour d. Direct materials 43. Which one of the following is a product cost? a. Indirect labour b. Office salaries c. Sales person’s salaries d. Advertising costs 44. A company uses sandpaper in its production process. How is the cost of the sandpaper classified? a. An insignificant expense that can be ignored b. A direct material c. A period cost d. A product cost 45. In which classification would the wages of a factory payroll clerk be classified? a. Raw materials b. Indirect labour c. Period cost d. Direct labour 46. Which one of the following is not a manufacturing cost? a. Advertising costs b. Cost of goods sold c. Manufacturing overhead d. Direct materials 47. What criteria must be met in order to consider the work of factory employees to be direct labour? a. It must be promptly associated with converting materials into products. b. It must be physically associated with converting materials into products. c. It must be materially associated with converting materials into products. d. It must be periodically associated with converting materials into products. 48. Which one of the following is classified as direct labour? a. Flour in a bakery b. Wages of factory janitors c. Bottlers of cola in a bottling company d. Copy machine costs at a copy shop 49. In what category are lubricants that are used for wheel bearings on skateboards produced by a manufacturer categorized? a. Selling expense b. Indirect materials c. Miscellaneous expense d. Direct materials 50. Which one of the following is not another name for the term, manufacturing overhead? a. Period costs b. Factory overhead c. Indirect manufacturing costs d. Burden 51. Which product cost is most difficult to associate with a product? a. Direct labour b. Advertising c. Direct materials d. Manufacturing overhead 52. A company incurred manufacturing costs that were product costs, but they are not classified as either direct materials or direct labour. What are these called? a. Manufacturing overhead b. Selling and administrative expenses c. Period costs d. Marketing costs 53. Inventoriable costs are also referred to as: a. Product costs b. Administrative costs c. Period costs d. Recorded costs 54. Zirk, Inc. incurred cost of goods manufactured totalling $700,000, manufacturing overhead of $320,000, and direct materials totalling $40,000. How much is the amount of direct labour? a. Cannot be determined from the information provided. b. $340,000 c. $660,000 d. $700,000 55. Ranger Company reported total manufacturing costs of $65,000, manufacturing overhead totalling $13,000, and direct materials totalling $16,000. How much is direct labour cost? a. Cannot be determined from the information provided. b. $94,000 c. $29,000 d. $36,000 56. Which of the following are period costs? a. Income taxes and indirect materials b. Selling and administrative expenses c. Indirect labour d. Advertising and factory depreciation 57. How does a manufacturing company classify sales commissions? a. As indirect labour b. As product costs c. As manufacturing overhead d. As period costs 58. Which of the following are considered product costs? a. Period costs and administrative expenses b. Selling and administrative expenses c. Inventoriable costs and plant assets d. Direct labour costs and manufacturing overhead 59. When are period costs recorded on the income statement? a. When they occur b. When the product that they are associated with is sold c. At the discretion of management d. None of the above 60. What must occur for inventoriable costs to become expenses under the matching principle? a. The product must be completed and ready to sell. b. The product must be sold. c. All of the costs associated with manufacturing a product must be incurred. d. The product must have incurred labour. 61. Which of the following could be considered either a product or a period cost depending on the purpose? a. Manufacturing overhead b. Direct labour c. Indirect materials d. depreciation 62. Where would you expect to find depreciation on factory equipment? a. Included with Depreciation Expense on the income statement b. In the manufacturing overhead section of the costs of goods manufactured schedule c. Only on the income statement as part of cost of goods sold d. As a period cost in the operating expense section of the income statement 63. Which one of the following represents a period cost? a. Company advertisement b. Depreciation of plant equipment c. Production manager’s salary d. Direct materials 64. Which one of the following is most likely a direct material? a. sawdust used to soak up spills in a paint factory b. Lubricants for factory machinery c. paper used in the photocopy machine in the sales office d. circuit boards in a computer 65. Manufacturing overhead can be categorized as: a. A prime cost and a period cost. b. A conversion cost and a period cost. c. A prime cost and a period cost. d. A conversion cost and a product cost. 66. Which one of the following is not considered a ‘material’ cost? a. Partially completed motor engines for a motorcycle plant b. Bolts used in manufacturing the compressor of an engine c. Rivets for the wings of a new commercial jet aircraft d. Lumber used to build tables 67. As production manager, Mr. B is asked to track the manufacturing cost per unit on the factory floor. Total manufacturing costs were $100,000 before considering factory maintenance salaries of $12,000 and $50,000 of factory depreciation. How much is the calculation of manufacturing cost per unit if 500 units had been produced in the current quarter? a. $224 b. $300 c. $200 d. $324 68. Which one of the following is an example of a period cost? a. A change in benefits for the union workers who work in the Toronto plant of a Fortune 1000 manufacturer b. Workers’ compensation insurance on factory workers wages allocated to the factory c. A processor used to produce computers d. A manager’s salary for work performed in the corporate head office 69. Which of the following would most likely be viewed as indirect materials? a. Ball bearings associated with an industrial tractor wheel b. Axle grease associated with the suspension of a new car c. New tires for a commercial truck d. Cost of boring a cylinder in assembly 70. As Plant Controller, you are trying to determine the costs over which you have the most control on a day-to-day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead? a. Factory janitor b. General corporate liability insurance c. Cost of landscaping the corporate office d. The western division’s vice president’s salary 71. Which of the following is considered manufacturing overhead? a. Depreciation on the press that moulds the plastic into work in process b. The line worker’s Christmas bonus designated by management c. Tools that were originally utilized for production but are currently being used by management to fix a copier in the upstairs corporate office d. The courier charge for delivering a new ball bearing joint for a robotic paint arm 72. A company loses it opening financial records in a fire. During the following year, it incurred costs of production of $250,000 and sold $300,000 in merchandise. It took an inventory count and found that it had $100,000 in product on hand. What should the company’s opening inventory show before the fire? a. $50,000 b. $100,000 c. $150,000 d. Cannot be determined from the above information 73. Salaries of sales people who only sell one product should best be shown as: a. Fixed overhead. b. Variable overhead. c. Direct selling costs. d. Indirect selling costs. 74 Which of the following is a direct cost of a hotel? a. Meals in the restaurant b. Room cleaning c. Room service d. Cleaning the lobby 75. Which of the following are period costs? a. Workers wages in the shipping department b. Workers wages paid for statutory holidays c. Workers wages in the plant maintenance department d. Workers wages on an assembly line 76. Which of the following statements is true? a. Advertising is a product cost and a plant manager’s salary is a period cost. b. Advertising is a period cost and a plant manager’s salary is a manufacturing overhead cost. c. Advertising is a period cost and a plant manager’s salary is a period cost. d. Advertising is a product cost and a plant manager’s salary is a manufacturing overhead cost. 77. Examples of fixed costs include all but one of the following e. Cost of factory rent for the 12 month contract term f. Cost of Janet’s apartment rent during her 3rd year of university g. Cost of a car rental which includes a fee per km driven h. A one-week rental of a carpet cleaning machine 78. Variable costs e. vary in total as activity varies. f. vary on a per unit basis as activity varies. g. are unpredictable. h. None of the above. 79. Which of the following would most likely be considered direct labour? f. A worker installing components in a computer g. A maintenance worker h. A security guard i. A sales person 80. The cost of the management accountant working in the front office of a company is a a. Direct, variable, product cost. b. Fixed period cost. c. Fixed product cost. d. Indirect period cost. 81. Indirect labour is a: a. Direct, variable, product cost. b. Direct, variable, period cost. c. Indirect, variable, product cost. d. Indirect, fixed or variable, product cost. 82. Which of the following would most likely be considered direct material? a. Wood used to make a chair b. Lubrication for factory machines c. Glue used to make a chair d. Cleaning products used in a factory 83. Manufacturing overhead is a a. Direct, variable, product cost. b. Direct, variable period costs. c. Indirect, variable, product cost. d. Indirect, fixed or variable product cost. 84. Fees for office cleaning and maintenance are a. Neither direct nor indirect. b. Fixed product costs. c. Variable product costs. d. Fixed or variable product costs. 85. Fees for office telephones are e. Fixed period costs. f. Mixed period costs. g. Variable period costs. h. Direct, fixed or variable period costs. 86. Property taxes for the entire manufacturing facility, including the front office and factory area are a. Both fixed and variable product costs. b. Both direct and indirect costs. c. Both a product and a period cost. d. None of the above. 87. The relevant range can be commonly understood to mean e. The normal range of output (activity) within which the company operates. f. The range wherein fixed costs are always fixed. g. The range wherein variable costs are strictly curvilinear. h. The range wherein fixed costs are strictly proportional to the level of activity. 88. Where there is a linear relationship between two variables e. The change in the dependent variable yields a predictable, constant change in the independent variable. f. The change in the independent variable yields a predictable, constant change in the dependent variable. g. There is seldom a linear relationship between two variables. h. A change in the “Y” variable yields a predictable, constant change in the “X” variable. 89. Which of the following statements is true? e. In real life, the curvilinear nature of variable costs is questionable. f. In real life, fixed costs are fixed in total and do not change at various activity levels. g. Within the relevant range, there is rarely a straight-line relationship for both variable and fixed costs. h. Within the relevant range the linear assumption is valid and useful for cost behaviour analysis. 90. Outside of the relevant range, which of the following outcomes is unlikely? e. It may be difficult for management to change all fixed costs. f. Achieving cost efficiency may be difficult. g. Total fixed costs will not change. h. At a 0% activity level all fixed costs will cease. 91. A curvilinear relationship between variable costs and changes in activity levels suggests what? e. A strictly linear relationship between fixed costs and activity levels is implausible. f. A strictly curvilinear relationship between changes in activity levels and variable costs is possible only within the relevant range. g. Since the relationship between activity levels and variable costs is linear within the relevant range and less linear at lower and higher levels outside the relevant range, the straight-line (linear) relationship takes on a curvature in the real world. h. None of the above. 92. Mixed costs are e. Costs with both indirect and direct elements. f. Costs with both product and period elements. g. Costs with both fixed and variable elements. h. None of these. 93. Mixed costs e. Change in proportion to changes in activity level. f. Change in total in response to changes in activity level. g. Change proportionately and in total as a result of changes in activity level. h. None of these. 94. To be useful to management accountants for planning and predictive purposes, mixed costs e. Must be classified into their fixed and variable elements. f. Must be classified into their direct and indirect elements. g. Must be classified into their product and period elements. h. None of these. 95. The high-low method a. Is a useful means of predicting the highest cost a company will incur in the operating period. b. Is a useful means of separating fixed and variable elements from a mixed cost. c. Is more time-consuming than the scatter diagram method. d. Is more complex than the use of linear regression analysis. 96. Critical inputs in using the high-low method include all of the following except: e. Actual activity levels (production levels) for an operating period. f. Actual mixed costs (total costs) corresponding to the various activity levels. g. A calculator. h. An hypothesis for the slope. Use the following information for questions 97 through 100. # Machine Maintenance Month Hours (X) Costs (Y) Jan 3,000 $440 Feb 4,500 $690 Mar 8,000 $510 Apr 7,000 $600 May 6,000 $550 June 9,000 $980 July 3,500 $840 Aug 5,500 $600 97. Which of the following choices represents the highest and lowest respective coordinates of activity level and corresponding total costs? e. (3,000 units, $440), (9,000 units, $980) f. (9,000 units, $980), (3,000 units, $440) g. ($3,000, 440 units), ($9,000, 980 units) h. ($9,000, 980 units), ($3,000, 440 units) 98. Using the high-low method, what is the slope for this set of data? a. $9 b. $0.09 c. $11.11 d. $540 99. What does the slope represent? a. The rate at which the X variable changes as a result of the Y variable b. The rate at which the Y variable changes as a result of the X variable c. The rate at which the dependent variable changes as a result of the fixed cost component d. The rate at which the independent variable changes as a result of changes in the dependent variable 100. What is the equation of the line using the high-low method and this data? e. $980 = 170 + (0.09X) f. Y = $170 + (0.09 x 9,000) g. Y = 170+ ($0.09 X) h. X = 170+ ($0. 09 Y) 101. A high-low approach to establishing fixed and variable components of costs is most effective when information available is: a. Curvilinear. b. Erratic and highly fluctuating. c. Outside of the relevant range. d. Linear. 102. Inside the relevant range, what costs are hardest for management to change: a. Direct labour. b. Direct materials. c. Fixed production costs. d. Variable production costs. 103 The main difference between variable and fixed costs is: a. Variable costs can be controlled by management, while fixed costs are not. b. Variable costs change in small amounts while fixed costs never change. c. Total variable costs are variable in the relevant range and fixed in the long term, while fixed costs never change. d. Variable costs per unit are fixed in the relevant range and fixed costs per unit are variable. 104. In periods of higher than normal activity for a manufacturing company: a. Variable costs will decline but fixed costs will remain unchanged. b. Variable costs will increase and fixed costs will decline. c. Variable costs per unit may increase while fixed costs per unit may decline. d. Variable costs per unit may increase and fixed costs per unit may increase. 105. Which one of the following is the correct calculation of cost of goods sold for a manufacturing company? a. Beginning FG inventory – cost of goods manufactured – ending FG inventory b. Ending FG inventory – cost of goods manufactured + beginning FG inventory c. Beginning FG inventory + cost of goods purchased – ending FG inventory d. Beginning FG inventory + cost of goods manufactured – ending FG inventory 106. How does a manufacturing company report cost of goods manufactured? a. As a current asset on the balance sheet b. As a component of the raw materials inventory on the balance sheet c. As a component in the calculation of cost of goods sold on the income statement d. As an administrative expense on the income statement 107. If you want to know the amounts a company used to calculate, ‘Cost of goods manufactured,’ where would you look? a. On the income statement b. On the balance sheet c. On both the balance sheet and income statement d. Only in the managerial accounting records 108. A merchandising company includes cost of goods purchased in its calculation of cost of goods sold. What is the counterpart used by a manufacturing company? a. Ending inventory b. Beginning inventory c. Cost of goods available for sale d. Cost of goods manufactured 109. Cost of goods sold applies to a. only merchandisers' income statements. b. only manufacturers' income statements. c. both manufacturers’ and merchandisers' income statements. d. manufacturers, merchandisers, and service companies. 110. How is the cost of goods manufactured calculated? a. Beginning WIP + direct materials used + direct labour + manufacturing overhead + ending WIP b. Direct materials used + direct labour + manufacturing overhead – beginning WIP + ending WIP c. Beginning WIP + direct materials used + direct labour + manufacturing overhead – ending WIP d. Direct materials used + direct labour + manufacturing overhead – ending WIP – beginning WIP 111. During 2012, "cost of goods manufactured" was less than the amount of "Total manufacturing costs" for the period. Which statement is true? a. Ending work in process inventory is greater than beginning work in process inventory. b. Ending work in process is less than beginning work in process inventory. c. Ending work in process is equal to the cost of goods manufactured. d. Ending work in process is less than beginning finished goods inventory. 112. Hardigan Manufacturing Company reported the following year-end information: beginning work in process inventory, $80,000; cost of goods manufactured, $980,000; beginning finished goods inventory, $50,000; ending work in process inventory, $70,000; and ending finished goods inventory, $40,000. How much is Haridgan’s cost of goods sold for the year? a. $980,000 b. $990,000 c. $970,000 d. $1,000,000 Use the following information for questions 113-115. Caltreck Manufacturing Inc.'s accounting records reflect the following inventories: Dec. 31, 2012 Dec. 31, 2011 Raw materials inventory $100,000 $ 80,000 Work in process inventory 130,000 145,000 Finished goods inventory 125,000 115,000 During 2012, Caltreck purchased $950,000 of raw materials, incurred direct labour costs of $125,000, and incurred manufacturing overhead totalling $160,000. 113. How much raw materials is transferred to production during 2012 for Caltreck Manufacturing? a. $1,240,000 b. $970,000 c. $950,000 d. $930,000 114. How much is total manufacturing costs incurred during 2012 for Caltreck? a. $1,240,000 b. $1,255,000 c. $1,235,000 d. $1,250,000 115. Assume Caltreck Manufacturing’s cost of goods manufactured for 2012 amounted to $1,200,000. How much would it report as cost of goods sold for the year? a. $1,210,000 b. $1,250,000 c. $1,325,000 d. $1,190,000 116. Hooter Manufacturing Company reported the following year-end information: Beginning work in process inventory $75,000 Beginning raw materials inventory 20,000 Ending work in process inventory 73,000 Ending raw materials inventory 23,000 Raw materials purchased 220,000 Direct labour 170,000 Manufacturing overhead 80,000 How much is Hooter Manufacturing’s cost of goods manufactured for the year? a. $470,000 b. $465,000 c. $469,000 d. $472,000 117. What amount is given by the sum of direct materials, direct labour, and manufacturing overhead incurred? a. Total cost of work in process b. Cost of goods available for sale c. Total manufacturing costs d. Cost of goods manufactured 118. What amount is given by the sum of the cost of the beginning work in process and the total manufacturing costs for the current year? a. Cost of goods manufactured b. Cost of goods available for sale c. Total cost of work in process d. Cost of goods sold 119. What are the components of total manufacturing costs? a. Direct materials and direct labour only b. Direct labour and manufacturing overhead only c. Manufacturing overhead only d. Direct materials, direct labour, and manufacturing overhead 120. Rezell Combines, Inc. has $4,000 of finished goods inventory as of December 31, 2012. If beginning finished goods inventory was $2,000 and cost of goods sold was $8,000, how much would Rezell report for cost of goods manufactured? a. $9,000 b. $2,000 c. $10,000 d. $6,000 121. At May 31, 2012, Smythe Inc. has $4,500 in beginning raw materials, $6,000 of direct labour. If manufacturing overhead was $10,500, total manufacturing costs was $50,500 and total raw material purchases were $36,000, how much is ending amount of raw materials? a. $36,000 b. $21,000 c. $40,500 d. $6,500 122. Costs of goods manufactured of SuperK Company are shown below. SuperK Company Cost of Goods manufactured Year Ending December 31, 2012 Beginning work in process: $15,000 Direct materials: Beginning raw materials $14,000 Raw material purchases 22,000 Total raw materials available for use 36,000 Ending raw materials 5,500 Direct materials used 30,500 Direct Labour 6,000 Total manufacturing overhead 10,500 Ending work in process 18,000 Total manufacturing costs $44,000 How much is the total manufacturing cost? a. $20,500 b. $23,000 c. $47,000 d. $44,000 123. In a manufacturing company, the cost of direct labour treated as an expense when: a. Products are sold. b. Products are transferred into work in process inventory. c. Wages are paid to the employees. d. At month end with accruals for wages. 124. What occurs when inventoriable costs are removed from the balance sheet? a. They increase operating expenses. b. They become cost of goods sold. c. They are reported as selling expenses. d. They are deducted from the sales account. 125. Where would you expect to find ending raw materials inventory? a. On the costs of goods manufactured schedule as an addition to raw materials purchases, and on the balance sheet b. On the costs of goods manufactured schedule as a subtraction from raw materials available for use, and on the balance sheet c. Only on the balance sheet d. Only the costs of goods manufactured schedule 126. Which one of the following does not appear on the balance sheet of a manufacturing company? a. Finished goods inventory b. Raw materials inventory c. Cost of goods manufactured d. Work in process inventory 127. What amount would you find on financial statements of merchandising companies that is referred to as finished goods inventory for a manufacturing company? a. Purchases b. Cost of goods purchased c. Merchandise inventory d. Raw materials inventory 128. How would you expect to see manufacturing inventories listed on a company’s balance sheet? a. In alphabetical order b. In order of liquidity c. In order from largest to smallest d. Any order the company desires 129. Which of the following is a manufacturing activity? a. Finished goods being sold directly to the public b. Developing new products through research and development c. Converting raw materials into finished goods d. All of the above 130. What is work in process inventory generally described as? a. Costs applicable to units that have been started in production but are only partially completed b. Costs associated with the end stage of manufacturing that are almost always complete and ready for customers c. Costs strictly associated with direct labour d. Beginning stage production costs associated with labour costs dealing with bringing in raw materials from the shipping docks 37. What does cost accounting measure, record, and report? a. Product costs b. Future costs c. Manufacturing processes d. Managerial accounting decisions 38. Which one of the following is a major purpose of cost accounting? a. To provide gross profit rates to managers b. To allocate overhead costs to jobs c. To classify all costs as direct or indirect d. To measure, record, and report product costs 39. Which of the following represents the two basic types of cost accounting systems? a. Job order and process cost systems b. Job order and job accumulation systems c. Job order and batch systems d. Process cost and batch systems 40. Which one of the following would most likely use a process cost system? a. The company that makes soup b. A company that creates advertisement campaigns c. A company which makes custom designed sailboats d. A company that paints houses 41. Which of the following would be accounted for using a job order cost system? a. The production of paper clips b. The legal representation of a client c. The production of toothpaste d. The production of cans of paint 42. For which one of the following is process costing used? a. Production of products which are unique to each customer b. Production of homes c. Production of products which are similar in nature d. Production of in-ground swimming pools for customers 43. Which one of the following correctly describes job order costing? a. Have distinguishing characteristics b. A series of connected manufacturing processes is necessary c. Homogeneous goods are being produced d. Large batches are produced 44. Which one of the following is an important feature of a job order cost system? a. Each must be completed before a new product order is accepted. b. Each consists of features which distinguish it from the next. c. Each job uses similar processes to produce. d. Each job has characteristics similar to the next. 45. Which one of the following is one of the components of cost accounting? a. It requires GAAP to be applied. b. It requires cost minimizing principles. c. It involves measuring product costs. d. It involves the determination of company profits. 46. Which are the two types of cost accounting systems? a. A process cost system and a production cost system b. A job cost system and a process cost system c. A job order cost system and a manufacturing cost system d. A query cost system and a manufacturing cost system 47. In which type of companies is overhead applied to jobs? a. With manufacturing and service companies b. Only companies that have labour costs associated with products c. Only manufacturing companies d. Primarily with service companies 48. Which one of the costs below is not considered part of direct labour costs? a. Employer payroll taxes on factory workers b. Gross earnings of the general manager of the plant c. Gross earnings of factory workers d. Fringe benefits 49. Which one of the following types of companies would most likely use a job cost system? a. Manufacturer of duct tape b. Producer of movies c. Manufacturer of pencils d. Manufacturer of petroleum 50. What is one of the key distinguishing features that separate a job-order costing system from a process costing system? a. Job order costing is best suited for small work or jobs b. Process costing emphasizes larger business activities c. Process costing is time-based whereas job-order costing is more item-specific d. Process costing is more item-specific whereas job-order costing is more time-based 51. Which of the following more closely describes job-order and process accounting differences? a. Job-order costing is best used when there are more material costs than labour costs involved. b. Process costing assigns costs to departments while job-order costing assigns costs to jobs. c. Process costing emphasizes the application of overheads more than job-order costing. d. Job-order costing emphasizes the application of overheads more than process costing. 52. For which of the following products would a job-order costing system be appropriate? a. Steel plant which makes one type of steel b. Door and window manufacturer making products like individual windows for houses c. Cement plant where a single identical type of cement product is manufactured d. Soda bottling plant where each type of soda is produced in a separate batch 53. What is the best way to handle manufacturing overhead costs in order to get the most timely job cost information? a. The company should account for only the direct production costs. b. The company should apply overhead using an estimated rate throughout the year. c. The company should add actual manufacturing overhead costs to jobs as soon as the overhead costs are incurred. d. The company should determine an allocation rate as soon as the actual costs are known, and then apply manufacturing overhead to jobs 54. When a job is completed, what happens to the cost of the job? a. It is removed from work in process and included in cost of goods sold. b. It is removed from finished goods and included in cost of goods sold. c. It is removed from materials inventory and included in work in process. d. It is removed from work in process and included in finished goods. 55. If a manufacturing company acquires raw materials, to what account is the cost of raw materials purchased debited? a. Raw Materials Purchases b. Raw Materials Inventory c. Purchases d. Work in Process 56. At the point that manufacturing labour costs are incurred, to what account are they debited? a. Work in Process b. Factory Wages Expense c. Factory Labour d. Factory Wages Payable 57. Which one of the following contains sources of costs that will be added to job cost sheets? a. Invoices, time tickets, and the predetermined overhead rate b. Materials requisition slips, time tickets, and the actual overhead costs c. Materials requisition slips, payroll register, and the predetermined overhead rate d. Materials requisition slips, time tickets, and the predetermined overhead rate 58. Which one of the following is never part of recording the issuance of raw materials in a job order cost system? a. Debit Work in Process Inventory b. Debit Finished Goods Inventory c. Debit Manufacturing Overhead d. Credit Raw Materials Inventory 59. What transaction is recorded when direct labour is assigned to jobs? a. A debit to Work in Process Inventory and a credit to Factory Labour b. A debit to Manufacturing Overhead and a credit to Factory Labour c. A debit to Factory Labour and a credit to Manufacturing Overhead d. A debit to Factory Labour and a credit to Work in Process Inventory 60. When computing the predetermined manufacturing overhead rate, which amount below is most likely used in the numerator? a. Direct labour hours b. Estimated manufacturing overhead costs c. Actual manufacturing overhead costs d. Applied manufacturing overhead costs 61. Myrna’s Manufacturing calculated its predetermined overhead rate to be 200% of direct materials costs. For the month of July, the company incurred $120,000 of raw material costs, of which $90,000 were direct materials, and $30,000 were indirect materials. Actual overhead incurred was $175,000. What would be the debit entry to the Work in Process Inventory account for July with respect to manufacturing overheat? a. $175,000 b. $180,000 c. $240,000 d. $zero, the account should be credited 62. Halitosis Company completed job 45 at a cost of $43,765 and later sold it for $90,000 cash. Which one of the following is one effect of selling the job? a. Debit Finished Goods Inventory $90,000 b. Credit Finished Goods Inventory $43,765 c. Credit Finished Goods Inventory $90,000 d. Debit Finished Goods Inventory $43,750 63. Where would you expect to find overhead applied in the monthly financial statements? a. An operating expense b. Assigned to a product account c. A deduction of raw materials inventory d. A liability 64. What is unique about the flow of costs in a job order cost system? a. Each job is costed separately in a Work in Process subsidiary ledger. b. It involves accumulating material, labour, and manufacturing overhead costs as they are incurred in order to determine the job cost. c. Job costs cannot be measured until all overhead costs are determined. d. There are no costs remaining in Work in Process at year end. 65. In a job order cost accounting system, the Work in Process account is a. closed at year end. b. a period cost. c. an expense. d. a control account. 66. What journal entry should be made when a job is completed and all costs have been accumulated on a job cost sheet? a. A debit to Finished Goods Inventory, and a credit to Work in Process Inventory b. A debit to Work in Process Inventory, and a credit to Direct Materials, Direct Labour, and Manufacturing Overhead c. A debit to Finished Goods Inventory and a credit to Direct Materials, Direct Labour, and Manufacturing Overhead d. A debit to Cost of Goods Sold Inventory, and a credit to Work in Process Inventory 67. What are the two major steps in the flow of costs for a job cost system? a. Accumulating and assigning b. Allocating and assigning c. Acquiring and accumulating d. Accumulating and allocating 68. Which of the following statements regarding the Raw Materials Inventory account is correct? a. Freight costs related to acquiring materials are credited. b. Purchase returns and allowances are debited. c. The invoice cost of purchasing materials is debited. d. Any purchase discounts taken are debited. 69. In what manner does a company most likely maintain its records of individual items of raw materials? a. In the stores ledger cards b. In the work in process inventory control account c. In the raw materials inventory account in the general ledger d. In each of the separate job cost records 70. At what point in time are costs of raw materials debited to Work in Process Inventory? a. When the materials are put into production b. When the bill for the materials is paid c. When the materials are ordered d. When the materials are received 71. What is another name for the stores ledger cards? a. The job cost records b. Purchase requisitions c. The Work in Process control account d. Raw Materials inventory records 72. A company completed all postings for its job costs for the year. Which of the following should have the same totals at year end? a. The cost of materials purchased and the total of the Raw Materials Inventory control account b. The total of the amount in the Work in Process subsidiary ledger and the Work in Process Inventory control account total c. The total of the accounts in the Work in Process subsidiary ledger and the Raw Materials Inventory control account total d. The cost of materials charged to Work in Process Inventory and the total of the accounts in the Work in Process subsidiary ledger 73. Factory labour costs a. omit holiday pay. b. are equal to the total amounts of the pay cheques the employees receive. c. are debited to work in process when incurred. d. include benefits for employees. 74. Which one of the following describes factory labour? a. It is debited to manufacturing overhead when incurred. b. It is debited to jobs as they are completed. c. It is an inventory account in a job cost system. d. It is assigned to work in process or manufacturing overhead. 75. Marion Manufacturing has the following labour costs: Factory—Gross wages $282,000 Factory—Net wages 236,000 Employer Payroll Taxes Payable 46,000 How much should Marion debit to Factory Labour to record these amounts? a. $518,000 b. $328,000 c. $282,000 d. $564,000 76. Which statement is true with regard to factory labour costs? a. It represents the net amount paid to factory workers for work on jobs. b. It is added to the Factory Labour account and later assigned to work in process or manufacturing overhead. c. These costs are accrued before incurred. d. Amounts incurred during a particular year that have not been allocated to jobs are carried over to the next year. 77. Which one of the following is a control account? a. Utilities Expense b. Factory Wages Payable c. Manufacturing Overhead d. Cost of Goods Sold 78. Which one of the following would most likely be a subsidiary account for Manufacturing Overhead? a. Insurance b. Raw materials inventory c. Work in process d. Finished goods 79. Which transaction is used to recognize the acquisition of raw materials on account? a. Debit to Accounts Payable and credit to Raw Materials Inventory b. Debit to Raw Materials Inventory and credit to Accounts Payable c. Debit to Work in Process Inventory and credit to Accounts Payable d. Debit to Manufacturing Overhead, debit to Raw Materials Inventory, and credit to Accounts Payable 80. To which control account do job cost sheets represent the subsidiary ledger? a. Cost of Goods Sold b. Cost of Goods Manufactured c. Work in Process Inventory d. Finished Goods Inventory 81. A materials requisition slip showed that total materials requested were $21,250 with $750 of this amount consisting of indirect materials. What entry is made to record the transfer of materials from the storeroom? a. Work in Process Inventory 20,500 Manufacturing Overhead 750 Raw Materials Inventory 21,250 b. Work in Process Inventory 21,250 Raw Material Inventory 21,250 c. Direct Materials 20,500 Indirect Materials 750 Work in Process Inventory 21,250 d. Manufacturing Overhead 21,250 Raw Materials Inventory 21,250 82. Which one of the following appears on the job cost sheet? a. The cost to date of all completed jobs b. The total materials purchased during the year c. Direct materials chargeable to a specific job d. The total cost of goods sold 83. How is the authorization for issuing materials made when an effective system of internal control is in place? a. By utilizing pre-numbered materials requisition slips b. By acquiring the materials from the delivery driver when the shipment is received from a trucking company c. By receiving authorization to begin a job from the production supervisor d. By approval from the accounting department 84. How is the employee time ticket used? a. It is kept as evidence of payment to employees. b. It is used only by the production supervisor to track which employees show up for work. c. It is used as a basis for determining the cost of labour to add to jobs. d. It is only sent to the accounting department to create pay cheques for employees. 85. Which of the following is true of materials requisition slips? a. They are prepared after the goods have been sold. b. They trigger a transaction which increases finished goods. c. They may indicate indirect materials used in production. d. They indicate receipt of materials from the supplier. 86. How often are postings to subsidiary accounts in a costing system made? a. At the end of every accounting period b. Monthly c. Daily d. Weekly 87. Which of the following pairs are control accounts? a. Work in Process and Manufacturing Overhead b. Raw Materials Inventory and Wages Payable c. Factory Labour and Wages Payable d. Work in Process and Job Revenue 88. Which of the following will you find on a labour time ticket? a. Total labour cost to be charged to job for the respective time ticket b. Cost of materials requisitioned for the job c. Estimated labour cost total for a job d. Total labour cost incurred to date for a job 89. Who is authorized to approve time tickets? a. The payroll clerk b. The Vice President of Time Tickets c. Whichever employee to whom the time ticket belongs d. The production supervisor 90. Samari Company prepared the entry to assign factory labour to jobs. The costs incurred included direct labour. Which account was debited? a. Manufacturing Labour b. Finishe