MANAGERIAL
ACCOUNTING
EXAM WITH ALL
MUST KNOWS…
Product jcosts jare... j- jcorrect janswer-Inventoried
Which jof jthe jfollowing jwould jNOT jbe jclassified jas ja jproduct jcost?
A. jDirect jmaterials
B. jDirect jlabor
C. jIndirect jmaterials
D. jInsurance jon ja jmanufacturing jplant
E. jSales jcommissions j- jcorrect janswer-Sales jcommissions
Costs jthat jare jexpensed jwhen jincurred jare jcalled... j- jcorrect janswer-Period jcosts
Which jof jthe jfollowing jis ja jperiod jcost?
A. jDirect jmaterial
, B. jAdvertising jexpense
C. jIndirect jlabor
D. jMiscellaneous jsupplies jused jin jproduction jactivities
E. jAdvertising jexpense jand jindirect jlabor j- jcorrect janswer-Advertising jexpense
Which jof jthe jfollowing jis jNOT ja jperiod jcost?
A. jLegal jcosts
B. jPublic jrelations jcosts
C. jSales jcommissions
D. jWages jof jassembly-line jworkers
E. jThe jsalary jof ja jcompany's jchief jfinancial jofficer j(CFO) j- jcorrect janswer-Wages
jof jassembly jline-workers
Which jof jthe jfollowing jentities jwould jmost jlikely jhave jraw jmaterials, jwork jin
jprocess, jand jfinished jgoods?
A. jExxon jCorporation
B. jMacy's jDepartment jStore
C. jWendy's
D. jSouthwest jAirlines
E. jColumbia jUniversity j- jcorrect janswer-Exxon jCorporation
Selling jand jadministrative jexpenses jwould jlikely jappear jon jthe jbalance jsheet jof:
A. jThe jGap
B. jTexas jInstruments
C. jTurner jBroadcasting jSystem
D. jAll jof jthese jfirms
E. jNone jof jthese jfirms j- jcorrect janswer-None jof jthese jfirms
Which jof jthe jfollowing jinventories jwould ja jdiscount jretailer jsuch jas jWalmart jreport
jas jan jasset? j- jcorrect janswer-Merchandise jinventory
Which jof jthe jfollowing jinventories jwould ja jcompany jordinarily jhold jfor jsale? j-
jcorrect janswer-Finished jgoods
Which jof jthe jfour jitems jlisted jbelow jis jnot ja jtype jof jproduction jprocess?
A. jBatch
B. jJob jshop
C. jContinuous jflow
D. jJob jflow j- jcorrect janswer-Job jflow
Which jtype jof jproduction jprocess jis jideal jfor ja jlow jproduction jvolume jand jone jof ja
jkind jproducts? j- jcorrect janswer-Job jshop
Mideast jMotors jmanufactures jautomobiles. jWhich jof jthe jfollowing jwould jNOT jbe
jclassified jas jdirect jmaterials jby jthe jcompany?
ACCOUNTING
EXAM WITH ALL
MUST KNOWS…
Product jcosts jare... j- jcorrect janswer-Inventoried
Which jof jthe jfollowing jwould jNOT jbe jclassified jas ja jproduct jcost?
A. jDirect jmaterials
B. jDirect jlabor
C. jIndirect jmaterials
D. jInsurance jon ja jmanufacturing jplant
E. jSales jcommissions j- jcorrect janswer-Sales jcommissions
Costs jthat jare jexpensed jwhen jincurred jare jcalled... j- jcorrect janswer-Period jcosts
Which jof jthe jfollowing jis ja jperiod jcost?
A. jDirect jmaterial
, B. jAdvertising jexpense
C. jIndirect jlabor
D. jMiscellaneous jsupplies jused jin jproduction jactivities
E. jAdvertising jexpense jand jindirect jlabor j- jcorrect janswer-Advertising jexpense
Which jof jthe jfollowing jis jNOT ja jperiod jcost?
A. jLegal jcosts
B. jPublic jrelations jcosts
C. jSales jcommissions
D. jWages jof jassembly-line jworkers
E. jThe jsalary jof ja jcompany's jchief jfinancial jofficer j(CFO) j- jcorrect janswer-Wages
jof jassembly jline-workers
Which jof jthe jfollowing jentities jwould jmost jlikely jhave jraw jmaterials, jwork jin
jprocess, jand jfinished jgoods?
A. jExxon jCorporation
B. jMacy's jDepartment jStore
C. jWendy's
D. jSouthwest jAirlines
E. jColumbia jUniversity j- jcorrect janswer-Exxon jCorporation
Selling jand jadministrative jexpenses jwould jlikely jappear jon jthe jbalance jsheet jof:
A. jThe jGap
B. jTexas jInstruments
C. jTurner jBroadcasting jSystem
D. jAll jof jthese jfirms
E. jNone jof jthese jfirms j- jcorrect janswer-None jof jthese jfirms
Which jof jthe jfollowing jinventories jwould ja jdiscount jretailer jsuch jas jWalmart jreport
jas jan jasset? j- jcorrect janswer-Merchandise jinventory
Which jof jthe jfollowing jinventories jwould ja jcompany jordinarily jhold jfor jsale? j-
jcorrect janswer-Finished jgoods
Which jof jthe jfour jitems jlisted jbelow jis jnot ja jtype jof jproduction jprocess?
A. jBatch
B. jJob jshop
C. jContinuous jflow
D. jJob jflow j- jcorrect janswer-Job jflow
Which jtype jof jproduction jprocess jis jideal jfor ja jlow jproduction jvolume jand jone jof ja
jkind jproducts? j- jcorrect janswer-Job jshop
Mideast jMotors jmanufactures jautomobiles. jWhich jof jthe jfollowing jwould jNOT jbe
jclassified jas jdirect jmaterials jby jthe jcompany?
