Testbank For Managerial Accounting 18th by Ray Garrison

Testbank For Managerial Accounting 18th Edition By Ray Garrison Version 1 2 MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statements are true? 1. A factory supervisor's salary would be classified as an indirect cost with respect to a unit of product. 2. A direct cost is a cost that can be easily traced to the particular cost object under consideration. 3. A cost can be direct or indirect. The classification can change if the cost object changes. A) Only statementIone is true. B) StatementsIone and II are true. C) All of the statements are true. D) None of the statements are true. Question Details AACSB : Reflective Thinking AICPA : BB Critical Thinking AICPA : FN Measurement Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-01 Understand cost classifications used for assigning costs to cost objects: Topic : Cost Classifications for Assigning Costs to Cost Objects Type : Static Question Focus: Qualitative Source : Chapter 01 Test Bank - Algorithmic and Static > TB MC Qu. 1-1 (Static) Which of the following statements... Version 1 3 2) Which of the following statements are true? 1. Wages paid to production supervisors would be classified as manufacturing overhead. 2. Indirect costs, such as manufacturing overhead, are variable costs. 3. Selling costs are indirect costs. 4. Administrative costs are indirect costs. A) Only statementIone is true. B) StatementsIone and III are true. C) All statements are true. D) None of the statements are true. Question Details AACSB : Reflective Thinking AICPA : BB Critical Thinking AICPA : FN Measurement Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co Topic : Cost Classifications for Manufacturing Companies Type : Static Question Focus: Qualitative Source : Chapter 01 Test Bank - Algorithmic and Static > TB MC Qu. 1-2 (Static) Which of the following statements... Version 1 4 3) Which of the following statements are true? 1. The sum of all manufacturing costs except for direct materials and direct labor is called manufacturing overhead. 2. The three cost elements ordinarily included in product costs are direct materials, direct labor, and manufacturing overhead. A) Only statement Ione is true. B) Only statement II is true. C) Both of the statements are true. D) Neither of the statements are true. Question Details AACSB : Reflective Thinking AICPA : BB Critical Thinking AICPA : FN Measurement Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c Topic : Cost Classifications for Manufacturing Companies Type : Static Question Focus: Qualitative Source : Chapter 01 Test Bank - Algorithmic and Static > TB MC Qu. 1-3 (Static) Which of the following statements... Version 1 5 4) Which of the following statements are true? 1. Depreciation is always considered a period cost for external financial reporting purposes in a manufacturing company. 2. Depreciation on equipment a company uses in its selling and administrative activities would be classified as a period cost. A) Only statement Ione is true. B) Only statement II is true. C) Both of the statements are true. D) Neither of the statements are true. Question Details AACSB : Reflective Thinking AICPA : BB Critical Thinking AICPA : FN Measurement Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 3 Hard Gradable : automatic Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod Topic : Cost Classifications for Manufacturing Companies Topic : Cost Classifications for Preparing Financial Statements Type : Static Question Focus: Qualitative Source : Chapter 01 Test Bank - Algorithmic and Static > TB MC Qu. 1-4 (Static) Which of the following statements... Version 1 6 5) Which of the following statements are true? 1. Conversion cost is the sum of direct labor cost and manufacturing overhead cost. 2. Conversion cost is the same thing as manufacturing overhead. 3. Conversion cost equals product cost less direct materials cost. A) Only statement Ione is true. B) Statements Ione and III are true. C) All statements are true. D) None of the statements are true. Question Details AACSB : Reflective Thinking AICPA : BB Critical Thinking AICPA : FN Measurement Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Bloom's : Remember Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c Topic : Cost Classifications for Preparing Financial Statements Type : Static Question Focus: Qualitative Source : Chapter 01 Test Bank - Algorithmic and Static > TB MC Qu. 1-5 (Static) Which of the following statements... Version 1 7 6) Which of the following statements are true? 1. In a manufacturing company, all costs are period costs. 2. Selling and administrative expenses are period costs under generally accepted accounting principles. 3. The cost of shipping parts from a supplier is considered a period cost. A) Only statement Ione is true. B) Only statement II is true. C) Statements Ione and II are true. D) Statements Ione and III are true. Question Details AACSB : Reflective Thinking AICPA : BB Critical Thinking AICPA : FN Measurement Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod Topic : Cost Classifications for Preparing Financial Statements Type : Static Question Focus: Qualitative Source : Chapter 01 Test Bank - Algorithmic and Static > TB MC Qu. 1-6 (Static) Which of the following statements... Version 1 8 7) Which of the following statements are true? 1. Advertising is not a considered a product cost even if it promotes a specific product. 2. Product costs are also known as inventoriable costs. 3. Prime cost is the sum of direct materials cost and direct labor cost. 4. Prime cost equals manufacturing overhead cost. A) Only statement Ione is true. B) Both statementsIone andIVfour are true. C) Statements Ione, II, and III are true. D) None of the statements are true. Question Details AACSB : Reflective Thinking AICPA : BB Critical Thinking AICPA : FN Measurement Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-02 Identify and give examples of each of the three basic manufacturing cost c Learning Objective : 01-03 Understand cost classifications used to prepare financial statements: prod Topic : Cost Classifications for Preparing Financial Statements Type : Static Question Focus: Qualitative Source : Chapter 01 Test Bank - Algorithmic and Static > TB MC Qu. 1-7 (Static) Which of the following statements... Version 1 9 8) Which of the following statements are true? 1. If the activity level increases, then one would expect the fixed cost per unit to increase as well. 2. A fixed cost is a cost whose cost per unit varies as the activity level rises and falls. 3. A decrease in production will ordinarily result in a decrease in fixed production costs per unit. A) Only statement II is true. B) Only statement III is true. C) Statements Ione and II are true. D) StatementsIone and III are true. Question Details AACSB : Reflective Thinking AICPA : BB Critical Thinking AICPA : FN Measurement Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co Topic : Cost Classifications for Predicting Cost Behavior Type : Static Question Focus: Qualitative Source : Chapter 01 Test Bank - Algorithmic and Static > TB MC Qu. 1-8 (Static) Which of the following statements... Version 1 10 9) Which of the following statements are true? 1. Cost behavior is considered curvilinear whenever a straight line is a reasonable approximation for the relation between cost and activity. 2. As activity decreases within the relevant range, fixed costs remain constant on a per unit basis. 3. In account analysis, an account is classified as either variable or fixed based on an analyst’s prior knowledge of how the cost in the account behaves. A) Only statement Ione is true. B) Only statement II is true. C) Only statement III is true. D) All statements are true. Question Details AACSB : Reflective Thinking AICPA : BB Critical Thinking AICPA : FN Measurement Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co Topic : Cost Classifications for Predicting Cost Behavior Type : Static Question Focus: Qualitative Source : Chapter 01 Test Bank - Algorithmic and Static > TB MC Qu. 1-9 (Static) Which of the following statements... Version 1 11 10) Which of the following statements are true? 1. The variable cost per unit depends on how many units are produced. 2. A step-variable cost is a cost that is obtained in large chunks and that increases or decreases only in response to fairly wide changes in activity. A) Only statement Ione is true. B) Only statement II is true. C) Both of the statements are true. D) Neither of the statements are true. Question Details AACSB : Reflective Thinking AICPA : BB Critical Thinking AICPA : FN Measurement Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co Topic : Cost Classifications for Predicting Cost Behavior Type : Static Question Focus: Qualitative Source : Chapter 01 Test Bank - Algorithmic and Static > TB MC Qu. 1-10 (Static) Which of the following statements... Version 1 12 11) Which of the following statements are true? 1. A fixed cost is constant if expressed on a per unit basis but the total dollar amount changes as the number of units increases or decreases. 2. Fixed costs expressed on a per unit basis do not change with changes in activity. 3. Committed fixed costs remain largely unchanged in the short run. A) Only statement Ione is true. B) Only statement II is true. C) Only statement III is true. D) All statements are true. Question Details AACSB : Analytical Thinking AICPA : BB Critical Thinking AICPA : FN Measurement Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co Topic : Cost Classifications for Predicting Cost Behavior Type : Static Question Focus: Qualitative Source : Chapter 01 Test Bank - Algorithmic and Static > TB MC Qu. 1-11 (Static) Which of the following statements... Version 1 13 12) Which of the following statements are true? 1. Within the relevant range, a change in activity results in a change in variable cost per unit and total fixed cost. 2. The concept of the relevant range does not apply to variable costs. A) Only statement Ione is true. B) Only statement II is true. C) Both of the statements are true. D) Neither of the statements are true. Question Details AACSB : Analytical Thinking AICPA : BB Critical Thinking AICPA : FN Measurement Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-04 Understand cost classifications used to predict cost behavior: variable co Topic : Cost Classifications for Predicting Cost Behavior Type : Static Question Focus: Qualitative Source : Chapter 01 Test Bank - Algorithmic and Static > TB MC Qu. 1-12 (Static) Which of the following statements