Test Bank for Managerial Accounting for Managers, 6th Edition by
Eric Noreen All Chapters 1-12 Completed
,Chap 01 6e
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1 Which of the following statements are true?
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1. Afactory supervisor's salary would be classified as anindirect cost with respect to aunitof p
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roduct.
2. A direct cost is acost that can be easily traced to the particular cost object underco
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nsideration.
3. Acost can be direct or indirect. The classification canchange if the cost object changes.
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A) Only statement 1 is true. v4 v4 v4 v4
B) Statements 1 and 2 are true. v4 v4 v4 v4 v4
C) All of the statements are true. v4 v4 v4 v4 v4
D) None of the statements aretrue. v4 v4 v4 v4 v4
2) Which of the following statements are true?
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1. Wagespaidto production supervisors wouldb e classified as manufacturing overhead.
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2. Indirectcosts, suchasmanufacturingoverhead, arevariablecosts. 4
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3. Sellingcosts areindirectcosts. 4
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4. Administrativecostsareindirect costs. 4
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v 4
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A) Only statement 1 is true. v4 v4 v4 v4
B) Statements 1 and 3 are true. v4 v4 v4 v4 v4
C) All statements are true. v4 v4 v4
D) None of the statements aretrue. v4 v4 v4 v4 v4
3) Which of the following statements are true?
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1. The sum of all manufacturing costs except for direct materials and direct labor is calledma
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nufacturingoverhead. 4
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2. Thethree cost elementsordinarilyincluded inproductcosts are direct materials, directla
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v 4
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bor,andmanufacturingoverhead.
4
v v4 4
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A) Only statement 1 is true. v4 v4 v4 v4
B) Only statement 2 is true. v4 v4 v4 v4
C) Both of the statements are true. v4 v4 v4 v4 v4
D) Neitherof the statements aretrue. 4
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,4) Which of the following statements are true?
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1. Depreciation is alwaysconsidered aperiod cost for externalfinancialreporting purpo v4 v4 4
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sesinamanufacturingcompany.
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2. Depreciation onequipment acompanyuses inits selling andadministrative activiti v4 v4 v4 v4 v4 v4 v4 v4 4
v 4
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eswouldbe classified as a period cost. v4 v4 v4 v4 v4 v4
A) Only statement 1 is true. v4 v4 v4 v4
B) Only statement 2 is true. v4 v4 v4 v4
C) Both of the statements are true. v4 v4 v4 v4 v4
D) Neitherof the statements aretrue. 4
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5) Which of the following statements are true?
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1. Conversioncost is the sumof direct labor cost and manufacturing overhead cost. 4
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2. Conversioncost is thesamething asmanufacturing overhead. 4
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3. Conversioncost equals product costless direct materials cost. 4
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A) Only statement 1 is true. v4 v4 v4 v4
B) Statements 1 and 3 are true. v4 v4 v4 v4 v4
C) All statements are true. v4 v4 v4
D) None of the statements aretrue. v4 v4 v4 v4 v4
6) Which of the following statements are true?
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1. Inamanufacturing company, all costs are period costs.
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2. Selling and administrative expenses are periodcosts under generally accepted accoun
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tingprinciples.
3. Thecost of shipping parts from asupplier is considered aperiod cost.
v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4
A) Only statement 1 is true. v4 v4 v4 v4
B) Only statement 2 is true. v4 v4 v4 v4
C) Statements 1 and 2 are true. v4 v4 v4 v4 v4
D) Statements 1 and 3 are true. v4 v4 v4 v4 v4
3
, 7) Which of the following statements are true?
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1. Advertising is not aconsidered aproduct cost even if it promotes aspecific product.
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2. Productcosts are also known as inventoriable costs.
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3. Prime cost is thesum of direct materials cost and direct labor cost.
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4. Primecostequalsmanufacturingoverheadcost.
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v 4
v 4
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v 4
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A) Only statement 1 is true. v4 v4 v4 v4
B) Both statements 1 and 4 are true. v4 v4 v4 v4 v4 v4
C) Statements 1, 2, and 3 are true. v4 v4 v4 v4 v4 v4
D) None of the statements aretrue. v4 v4 v4 v4 v4
8) Which of the following statements are true?
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1. If the activity level increases, then one would expect the fixed cost per unit to increase
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aswell.
2. Afixed cost is acost whose cost per unit varies as the activity level rises andfalls.
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3. A decrease in production will ordinarily result in a decrease in fixed production costspe
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v
runit.
A) Only statement 2 is true. v4 v4 v4 v4
B) Only statement 3 is true. v4 v4 v4 v4
C) Statements 1 and 2 are true. v4 v4 v4 v4 v4
D) Statements 1 and 3 are true. v4 v4 v4 v4 v4
9) Which of the following statements are true?
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1. Cost behavior is considered curvilinear whenever astraight line is a reasona
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bleapproximation forthe relation between cost andactivity. v4 v4 v4 v4 v4 v4 v4
2. As activity decreases within the relevant range, fixed costs remain constant ona perunit
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basis.
3. In account analysis, anaccount is classified as either variable or fixed based on anana
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lyst’s prior knowledge of howthe cost in the account behaves.
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A) Only statement 1 is true. v4 v4 v4 v4
B) Only statement 2 is true. v4 v4 v4 v4
C) Only statement 3 is true. v4 v4 v4 v4
D) All statements are true. v4 v4 v4
3
Eric Noreen All Chapters 1-12 Completed
,Chap 01 6e
v4 v4
1 Which of the following statements are true?
v4 v4 v4 v4 v4 v4 v4
1. Afactory supervisor's salary would be classified as anindirect cost with respect to aunitof p
v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v 4 v4 v4
roduct.
2. A direct cost is acost that can be easily traced to the particular cost object underco
v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v 4
nsideration.
3. Acost can be direct or indirect. The classification canchange if the cost object changes.
v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4
A) Only statement 1 is true. v4 v4 v4 v4
B) Statements 1 and 2 are true. v4 v4 v4 v4 v4
C) All of the statements are true. v4 v4 v4 v4 v4
D) None of the statements aretrue. v4 v4 v4 v4 v4
2) Which of the following statements are true?
v4 v4 v4 v4 v4 v4
1. Wagespaidto production supervisors wouldb e classified as manufacturing overhead.
v4 v4 v4 v4 v4 4
v v4 v4 v4 v4
2. Indirectcosts, suchasmanufacturingoverhead, arevariablecosts. 4
v v4 4
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3. Sellingcosts areindirectcosts. 4
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v 4
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4. Administrativecostsareindirect costs. 4
v 4
v 4
v v4
A) Only statement 1 is true. v4 v4 v4 v4
B) Statements 1 and 3 are true. v4 v4 v4 v4 v4
C) All statements are true. v4 v4 v4
D) None of the statements aretrue. v4 v4 v4 v4 v4
3) Which of the following statements are true?
v4 v4 v4 v4 v4 v4
1. The sum of all manufacturing costs except for direct materials and direct labor is calledma
v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v 4
nufacturingoverhead. 4
v
2. Thethree cost elementsordinarilyincluded inproductcosts are direct materials, directla
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v 4
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bor,andmanufacturingoverhead.
4
v v4 4
v
A) Only statement 1 is true. v4 v4 v4 v4
B) Only statement 2 is true. v4 v4 v4 v4
C) Both of the statements are true. v4 v4 v4 v4 v4
D) Neitherof the statements aretrue. 4
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,4) Which of the following statements are true?
v4 v4 v4 v4 v4 v4
1. Depreciation is alwaysconsidered aperiod cost for externalfinancialreporting purpo v4 v4 4
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sesinamanufacturingcompany.
v4 v4 v4
2. Depreciation onequipment acompanyuses inits selling andadministrative activiti v4 v4 v4 v4 v4 v4 v4 v4 4
v 4
v v 4
eswouldbe classified as a period cost. v4 v4 v4 v4 v4 v4
A) Only statement 1 is true. v4 v4 v4 v4
B) Only statement 2 is true. v4 v4 v4 v4
C) Both of the statements are true. v4 v4 v4 v4 v4
D) Neitherof the statements aretrue. 4
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5) Which of the following statements are true?
v4 v4 v4 v4 v4 v4
1. Conversioncost is the sumof direct labor cost and manufacturing overhead cost. 4
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2. Conversioncost is thesamething asmanufacturing overhead. 4
v 4
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3. Conversioncost equals product costless direct materials cost. 4
v 4
v v4 v4 4
v v4 v4 v4
A) Only statement 1 is true. v4 v4 v4 v4
B) Statements 1 and 3 are true. v4 v4 v4 v4 v4
C) All statements are true. v4 v4 v4
D) None of the statements aretrue. v4 v4 v4 v4 v4
6) Which of the following statements are true?
v4 v4 v4 v4 v4 v4
1. Inamanufacturing company, all costs are period costs.
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2. Selling and administrative expenses are periodcosts under generally accepted accoun
v4 v4 v4 v4 v4 4
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tingprinciples.
3. Thecost of shipping parts from asupplier is considered aperiod cost.
v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4
A) Only statement 1 is true. v4 v4 v4 v4
B) Only statement 2 is true. v4 v4 v4 v4
C) Statements 1 and 2 are true. v4 v4 v4 v4 v4
D) Statements 1 and 3 are true. v4 v4 v4 v4 v4
3
, 7) Which of the following statements are true?
v4 v4 v4 v4 v4 v4
1. Advertising is not aconsidered aproduct cost even if it promotes aspecific product.
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2. Productcosts are also known as inventoriable costs.
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3. Prime cost is thesum of direct materials cost and direct labor cost.
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4. Primecostequalsmanufacturingoverheadcost.
4
v 4
v 4
v 4
v 4
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A) Only statement 1 is true. v4 v4 v4 v4
B) Both statements 1 and 4 are true. v4 v4 v4 v4 v4 v4
C) Statements 1, 2, and 3 are true. v4 v4 v4 v4 v4 v4
D) None of the statements aretrue. v4 v4 v4 v4 v4
8) Which of the following statements are true?
v4 v4 v4 v4 v4 v4
1. If the activity level increases, then one would expect the fixed cost per unit to increase
v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v 4 4
v
aswell.
2. Afixed cost is acost whose cost per unit varies as the activity level rises andfalls.
v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4
3. A decrease in production will ordinarily result in a decrease in fixed production costspe
v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v 4 4
v
runit.
A) Only statement 2 is true. v4 v4 v4 v4
B) Only statement 3 is true. v4 v4 v4 v4
C) Statements 1 and 2 are true. v4 v4 v4 v4 v4
D) Statements 1 and 3 are true. v4 v4 v4 v4 v4
9) Which of the following statements are true?
v4 v4 v4 v4 v4 v4
1. Cost behavior is considered curvilinear whenever astraight line is a reasona
v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v 4
bleapproximation forthe relation between cost andactivity. v4 v4 v4 v4 v4 v4 v4
2. As activity decreases within the relevant range, fixed costs remain constant ona perunit
v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v 4 v4
basis.
3. In account analysis, anaccount is classified as either variable or fixed based on anana
v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v4 v 4 v4
lyst’s prior knowledge of howthe cost in the account behaves.
v4 v4 v4 v4 v4 v4 v4 v4 v4 v4
A) Only statement 1 is true. v4 v4 v4 v4
B) Only statement 2 is true. v4 v4 v4 v4
C) Only statement 3 is true. v4 v4 v4 v4
D) All statements are true. v4 v4 v4
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