TEST BANK FOR MANAGERIAL ACCOUNTING 16TH EDITION BY GARRISON

TEST BANK FOR MANAGERIAL ACCOUNTING 16TH EDITION BY GARRISON. Selling costs are indirect costs. Answer: F Difficulty: 2 Medium Learning Objective: 01-02 Topic Area: Blooms: Remember AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 6. The sum of all manufacturing costs except for direct materials and direct labor is called manufacturing overhead. Answer: T Difficulty: 2 Medium Learning Objective: 01-02 Topic Area: Blooms: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 7. The three cost elements ordinarily included in product costs are direct materials, direct labor, and manufacturing overhead. Answer: T Difficulty: 1 Easy Learning Objective: 01-02 Topic Area: Blooms: Remember AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 8. Administrative costs are indirect costs. Answer: F Difficulty: 2 Medium Learning Objective: 01-02 Topic Area: Blooms: Remember AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 9. Depreciation is always considered a period cost for external financial reporting purposes in a manufacturing company. Answer: F Difficulty: 2 Medium Learning Objective: 01-02 Learning Objective: 01-03 Topic Area: Blooms: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 10. Opportunity costs at a manufacturing company are not part of manufacturing overhead. Answer: T Difficulty: 3 Hard Learning Objective: 01-02 Learning Objective: 01-05 Topic Area: Blooms: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 11. Conversion cost is the sum of direct labor cost and manufacturing overhead cost. Answer: T Difficulty: 1 Easy Learning Objective: 01-03 Topic Area: Blooms: Remember AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 12. In a manufacturing company, all costs are period costs. Answer: F Difficulty: 1 Easy Learning Objective: 01-03 Topic Area: Blooms: Remember AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 13. Advertising is not a considered a product cost even if it promotes a specific product. Answer: T Difficulty: 2 Medium Learning Objective: 01-03 Topic Area: Blooms: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 14. Selling and administrative expenses are period costs under generally accepted accounting principles. Answer: T Difficulty: 1 Easy Learning Objective: 01-03 Topic Area: Blooms: Remember AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 15. Conversion cost equals product cost less direct materials cost. Answer: T Difficulty: 3 Hard Learning Objective: 01-03 Topic Area: Blooms: Analyze AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 16. Prime cost is the sum of direct materials cost and direct labor cost. Answer: T Difficulty: 1 Easy Learning Objective: 01-03 Topic Area: Blooms: Remember AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 17. Product costs are also known as inventoriable costs. Answer: T Difficulty: 1 Easy Learning Objective: 01-03 Topic Area: Blooms: Remember AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 18. Prime cost equals manufacturing overhead cost. Answer: F Difficulty: 3 Hard Learning Objective: 01-03 Topic Area: Blooms: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 19. Conversion cost is the same thing as manufacturing overhead. Answer: F Difficulty: 1 Easy Learning Objective: 01-03 Topic Area: Blooms: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 20. The cost of shipping parts from a supplier is considered a period cost. Answer: F Difficulty: 3 Hard Learning Objective: 01-03 Topic Area: Blooms: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 21. Depreciation on equipment a company uses in its selling and administrative activities would be classified as a period cost. Answer: T Difficulty: 1 Easy Learning Objective: 01-03 Topic Area: Blooms: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: [QUESTION] 22. Indirect costs, such as manufacturing overhead, are variable costs. Answer: F Difficulty: 2 Medium Learning Objective: 01-04 Topic Area: Blooms: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: