TEST BANK FOR Managerial Accounting: Creating
Value In A Dynamic Business Environment 9th Edition
With Answers Key
,TEST BANK FOR Managerial Accounting: Creating
Value In A Dynamic Business Environment 9th Edition
With Answers Key
Chapter 02 Basic Cost Management Concepts And Accounting For Mass Customization
Operations
True / False Questions
1. Inventoriable Costs Are Expensed When Incurred. True False
2. Finished Goods Inventory Is Ordinarily Held For Sale By A Manufacturing Company. True False
3. Indirect Labor Is Not A Component Of Manufacturing Overhead. True False
,4. The Following Equation -- Beginning Finished Goods + Cost Of Goods Manufactured - Ending
Finished Goods -- Is Used To Calculate Cost Of Goods Sold During The Period.
True False
5. A Suitable Cost Driver For The Amount Of Direct Materials Used Is The Number Of Direct Labor
Hours Worked.
True False
Multiple Choice Questions
6. Which Of The Following Statements Is True?
A. The Word "Cost" Has The Same Meaning In All Situations In Which It Is Used.
B. Cost Data, Once Classified And Recorded For A Specific Application, Are Appropriate For Use In
Any Application.
C. Different Cost Concepts And Classifications Are Used For Different Purposes.
D. All Organizations Incur The Same Types Of Costs.
E. Costs Incurred In One Year Are Always Meaningful In The Following Year.
7. Product Costs Are:
A. Expensed When Incurred.
B. Inventoried.
C. Treated In The Same Manner As Period Costs.
D. Treated In The Same Manner As Advertising Costs.
E. Subtracted From Cost Of Goods Sold.
, 8. Which Of The Following Is A Product Cost?
A. Glass In An Automobile.
B. Advertising.
C. The Salary Of The Vice President-Finance.
D. Rent On A Factory.
E. Both "A" And "D."
9. 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.
10. The Accounting Records Of Georgia Company Revealed The Following Costs: Direct Materials
Used, $250,000; Direct Labor, $425,000; Manufacturing Overhead, $375,000; And Selling And
Administrative Expenses, $220,000. Georgia's Product Costs Total:
A. $1,050,000.
B. $830,000.
C. $895,000.
D. $1,270,000.
E. Some Other Amount.
Value In A Dynamic Business Environment 9th Edition
With Answers Key
,TEST BANK FOR Managerial Accounting: Creating
Value In A Dynamic Business Environment 9th Edition
With Answers Key
Chapter 02 Basic Cost Management Concepts And Accounting For Mass Customization
Operations
True / False Questions
1. Inventoriable Costs Are Expensed When Incurred. True False
2. Finished Goods Inventory Is Ordinarily Held For Sale By A Manufacturing Company. True False
3. Indirect Labor Is Not A Component Of Manufacturing Overhead. True False
,4. The Following Equation -- Beginning Finished Goods + Cost Of Goods Manufactured - Ending
Finished Goods -- Is Used To Calculate Cost Of Goods Sold During The Period.
True False
5. A Suitable Cost Driver For The Amount Of Direct Materials Used Is The Number Of Direct Labor
Hours Worked.
True False
Multiple Choice Questions
6. Which Of The Following Statements Is True?
A. The Word "Cost" Has The Same Meaning In All Situations In Which It Is Used.
B. Cost Data, Once Classified And Recorded For A Specific Application, Are Appropriate For Use In
Any Application.
C. Different Cost Concepts And Classifications Are Used For Different Purposes.
D. All Organizations Incur The Same Types Of Costs.
E. Costs Incurred In One Year Are Always Meaningful In The Following Year.
7. Product Costs Are:
A. Expensed When Incurred.
B. Inventoried.
C. Treated In The Same Manner As Period Costs.
D. Treated In The Same Manner As Advertising Costs.
E. Subtracted From Cost Of Goods Sold.
, 8. Which Of The Following Is A Product Cost?
A. Glass In An Automobile.
B. Advertising.
C. The Salary Of The Vice President-Finance.
D. Rent On A Factory.
E. Both "A" And "D."
9. 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.
10. The Accounting Records Of Georgia Company Revealed The Following Costs: Direct Materials
Used, $250,000; Direct Labor, $425,000; Manufacturing Overhead, $375,000; And Selling And
Administrative Expenses, $220,000. Georgia's Product Costs Total:
A. $1,050,000.
B. $830,000.
C. $895,000.
D. $1,270,000.
E. Some Other Amount.
