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Managerial
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Accounting
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forManagers
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5thEditionBy
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Noreen
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,Managerial Accounting for Managers, 5e (Noreen) ert ert ert ert ert
Chapter 1 Managerial Accounting and Cost Concepts
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1) A factory supervisor's salary would be classified as an indirect cost with respect to a unit of
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product.
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Answer: TRUE e r t
Difficulty:2Medium
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Topic: Cost Classifications for Assigning Costs to Cost Objects
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Learning Objective: 01-01 Understand cost classifications used for assigning costs to cost
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objects: direct costs and indirect costs.
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Bloom's: Understand e r t
AACSB:
ert Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
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2) A direct cost is a cost that can be easily traced to the particular cost object under
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consideration.
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Answer: TRUE e r t
Difficulty:1Easy
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Topic: Cost Classifications for Assigning Costs to Cost Objects
e r t e r t ert ert ert ert ert ert ert
Learning Objective: 01-01 Understand cost classifications used for assigning costs to cost
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objects: direct costs and indirect costs.
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Bloom's: Remember e r t
e AACSB:
r t Reflective e r t
Thinking
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AICPA: BB Critical Thinking; FN Measurement
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3) A cost can be direct or indirect. The classification can change if the cost object changes.
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Answer: TRUE e r t
Difficulty:2Medium
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Topic: Cost Classifications for Assigning Costs to Cost Objects
e r t e r t ert ert ert ert ert ert ert
Learning Objective: 01-01 Understand cost classifications used for assigning costs to cost
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objects: direct costs and indirect costs.
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Bloom's: Understand e r t
AACSB:
ert Reflective e r t
Thinking
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AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
,4) Wages paid to production supervisors would be classified as manufacturing overhead.
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Answer: TRUE e r t
Difficulty:1Easy
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Topic: Cost Classifications for Manufacturing Companies
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Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
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cost categories.
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Bloom's: Understand e r t
AACSB:
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Thinking
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AICPA: BB Critical Thinking; FN Measurement
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5) Selling costs are indirect costs. ert ert ert ert
Answer: FALSE e r t
Difficulty:2Medium
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Topic: Cost Classifications for Manufacturing Companies
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Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
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cost categories.
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Bloom's: Remember e r t
e AACSB:
r t Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
6) The sum of all manufacturing costs except for direct materials and direct labor is called
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manufacturing overhead.
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Answer: TRUE e r t
Difficulty:2Medium
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Topic: Cost Classifications for Manufacturing Companies
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Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
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cost categories.
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Bloom's: Understand e r t
AACSB:
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Thinking
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AICPA: BB Critical Thinking; FN Measurement
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7) The three cost elements ordinarily included in product costs are direct materials, direct labor,
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and manufacturing overhead.
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Answer: TRUE e r t
Difficulty:1Easy
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Topic: Cost Classifications for Manufacturing Companies
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Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
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cost categories.
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Bloom's: Remember e r t
e AACSB:
r t Reflective e r t
Thinking
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AICPA: BB Critical Thinking; FN Measurement
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8) Administrative costs are indirect costs. ert ert ert ert
, Answer: FALSE e r t
Difficulty:2Medium
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Topic: Cost Classifications for Manufacturing Companies
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Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
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cost categories.
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Bloom's: Remember e r t
e AACSB:
r t Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
9) Depreciation is always considered a period cost for external financial reporting purposes in a ert ert ert ert ert ert ert ert ert ert ert ert ert
manufacturing company.
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Answer: FALSE e r t
Difficulty:2Medium
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Topic: Cost Classifications for Manufacturing Companies; Cost Classifications for Preparing
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Financial Statements
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Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
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cost categories.; 01-03 Understand cost classifications used to prepare financial statements:
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product costs and period costs.
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Bloom's: Understand e r t
AACSB:
ert Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
10) Opportunity costs at a manufacturing company are not part of manufacturing overhead. ert ert ert ert ert ert ert ert ert ert ert
Answer: TRUE e r t
Difficulty: 3 Hard
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Topic: Cost Classifications for Manufacturing Companies; Cost Classifications for Decision
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Making
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Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
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cost categories.; 01-05 Understand cost classifications used in making decisions: differential
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costs, sunk costs, and opportunity costs.
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Bloom's: Understand e r t
AACSB:
ert Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
for tre
Managerial
tre tre
Accounting
tre tre
forManagers
tre tre
5thEditionBy
ert tre tre
Noreen
ert
,Managerial Accounting for Managers, 5e (Noreen) ert ert ert ert ert
Chapter 1 Managerial Accounting and Cost Concepts
ert ert ert ert ert ert
1) A factory supervisor's salary would be classified as an indirect cost with respect to a unit of
ert ert ert ert ert ert ert ert ert ert ert ert ert ert ert ert
product.
ert
Answer: TRUE e r t
Difficulty:2Medium
ert ert ert
Topic: Cost Classifications for Assigning Costs to Cost Objects
e r t e r t ert ert ert ert ert ert ert
Learning Objective: 01-01 Understand cost classifications used for assigning costs to cost
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objects: direct costs and indirect costs.
ert ert ert ert ert ert
Bloom's: Understand e r t
AACSB:
ert Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
2) A direct cost is a cost that can be easily traced to the particular cost object under
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consideration.
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Answer: TRUE e r t
Difficulty:1Easy
ert ert ert
Topic: Cost Classifications for Assigning Costs to Cost Objects
e r t e r t ert ert ert ert ert ert ert
Learning Objective: 01-01 Understand cost classifications used for assigning costs to cost
ert e r t ert ert ert ert ert ert ert ert ert
objects: direct costs and indirect costs.
ert ert ert ert ert ert
Bloom's: Remember e r t
e AACSB:
r t Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
3) A cost can be direct or indirect. The classification can change if the cost object changes.
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Answer: TRUE e r t
Difficulty:2Medium
ert ert ert
Topic: Cost Classifications for Assigning Costs to Cost Objects
e r t e r t ert ert ert ert ert ert ert
Learning Objective: 01-01 Understand cost classifications used for assigning costs to cost
ert e r t ert ert ert ert ert ert ert ert ert
objects: direct costs and indirect costs.
ert ert ert ert ert ert
Bloom's: Understand e r t
AACSB:
ert Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
,4) Wages paid to production supervisors would be classified as manufacturing overhead.
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Answer: TRUE e r t
Difficulty:1Easy
ert ert ert
Topic: Cost Classifications for Manufacturing Companies
e r t e r t ert ert ert ert
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
ert e r t ert ert ert ert ert ert ert ert ert ert ert
cost categories.
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Bloom's: Understand e r t
AACSB:
ert Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
5) Selling costs are indirect costs. ert ert ert ert
Answer: FALSE e r t
Difficulty:2Medium
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Topic: Cost Classifications for Manufacturing Companies
e r t e r t ert ert ert ert
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
ert e r t ert ert ert ert ert ert ert ert ert ert ert
cost categories.
ert ert
Bloom's: Remember e r t
e AACSB:
r t Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
6) The sum of all manufacturing costs except for direct materials and direct labor is called
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manufacturing overhead.
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Answer: TRUE e r t
Difficulty:2Medium
ert ert ert
Topic: Cost Classifications for Manufacturing Companies
e r t e r t ert ert ert ert
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
ert e r t ert ert ert ert ert ert ert ert ert ert ert
cost categories.
ert ert
Bloom's: Understand e r t
AACSB:
ert Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
7) The three cost elements ordinarily included in product costs are direct materials, direct labor,
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and manufacturing overhead.
ert ert ert
Answer: TRUE e r t
Difficulty:1Easy
ert ert ert
Topic: Cost Classifications for Manufacturing Companies
e r t e r t ert ert ert ert
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
ert e r t ert ert ert ert ert ert ert ert ert ert ert
cost categories.
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Bloom's: Remember e r t
e AACSB:
r t Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
8) Administrative costs are indirect costs. ert ert ert ert
, Answer: FALSE e r t
Difficulty:2Medium
ert ert ert
Topic: Cost Classifications for Manufacturing Companies
e r t e r t ert ert ert ert
Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
ert e r t ert ert ert ert ert ert ert ert ert ert ert
cost categories.
ert ert
Bloom's: Remember e r t
e AACSB:
r t Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
9) Depreciation is always considered a period cost for external financial reporting purposes in a ert ert ert ert ert ert ert ert ert ert ert ert ert
manufacturing company.
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Answer: FALSE e r t
Difficulty:2Medium
ert ert ert
Topic: Cost Classifications for Manufacturing Companies; Cost Classifications for Preparing
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Financial Statements
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Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
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cost categories.; 01-03 Understand cost classifications used to prepare financial statements:
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product costs and period costs.
ert ert ert ert ert
Bloom's: Understand e r t
AACSB:
ert Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
10) Opportunity costs at a manufacturing company are not part of manufacturing overhead. ert ert ert ert ert ert ert ert ert ert ert
Answer: TRUE e r t
Difficulty: 3 Hard
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Topic: Cost Classifications for Manufacturing Companies; Cost Classifications for Decision
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Making
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Learning Objective: 01-02 Identify and give examples of each of the three basic manufacturing
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cost categories.; 01-05 Understand cost classifications used in making decisions: differential
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costs, sunk costs, and opportunity costs.
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Bloom's: Understand e r t
AACSB:
ert Reflective e r t
Thinking
ert
AICPA: BB Critical Thinking; FN Measurement
e r t e r t ert ert ert ert
