ACCT 526 Exam Questions and Answers
Verified Solutions Latest Update
2026/2027
Answer:
implement the policies framed by the top management team.
●● An organizational chart:.
Answer:
shows line and staff positions within an organization.
●● Accountants who hold a certificate that allows them to conduct expert work to determine
intentional errors and mistakes made in the financial statements are called:.
Answer:
Certified Fraud Examiners.
●● Which of the following is a certification designed to meet the specific needs of managerial
accountants?.
Answer:
The Certificate in Management Accounting
●● Which of the following certifications do managerial accountants obtain?
a.The Certificate in Management Accounting
b.The Certificate in Public Accounting
c.The Certificate in Internal Auditing
d.All of these answer choices are correct..
Answer:
d.All of these answer choices are correct.
●● Which of the following is an example of a variable cost?
a.Cost of direct materials
b.Factory rent
c.Property tax
d.Depreciation on machinery.
,Answer:
.Cost of direct materials
●● Cost allocation is:.
Answer:
the process of assigning indirect costs to cost objects.
●● Which of the following costs forms a part of prime cost as well as conversion cost?
a.The cost of direct materials and direct labor
b.The cost of direct materials
c.Manufacturing overhead
d.The cost of direct labor.
Answer:
d.The cost of direct labor
●● During May, the cost of goods manufactured was $62,000. The beginning finished goods
inventory for the month was $25,000, and the ending finished goods inventory was $30,000. What
was the cost of goods sold for May?
a.$66,000
b.$117,000
c.$32,000
d.$57,000.
Answer:
d.$57,000
62,000-30,000+25,000=57,000
●● the formula to calculate prime cost?.
Answer:
Prime Cost = Direct Materials + Direct Labor
●● The ending inventories of materials, work-in-process, and finished goods appear:.
Answer:
as current assets on the balance sheet.
●● Which of the following items appear on the income statement of a service firm?
, a.Manufacturing overhead
b.Cost of goods sold
c.Gross margin
d.Operating expenses.
Answer:
d.Operating expenses
●● Impact Corporation reported $440,000 of revenue for the year. Selling expenses amounted to
$53,000, and administrative expenses were $78,000. Cost of goods sold was 44% of revenue.
Impact's gross margin is:
a.$246,400.
b.$309,000.
c.$193,600.
d.$362,000..
Answer:
a.$246,400.
440,000*.44=193,600
440,000-193,000=246,400
●● Super Co. manufactured 10,000 units and reported the following information for December:
Direct materials$36,000
Direct labor25,000
Manufacturing overhead35,000
Beginning work in process inventory28,000
Ending work in process inventory29,000
The prime cost per unit is:
a.$6.00.
b.$3.60.
c.$6.10.
d.$3.50..
Answer:
c.$6.10.
36,000+25,000=61,000
61,000/10,000=6.1
●● Which of the following costs forms a part of prime cost as well as conversion cost?
a.Manufacturing overhead
Verified Solutions Latest Update
2026/2027
Answer:
implement the policies framed by the top management team.
●● An organizational chart:.
Answer:
shows line and staff positions within an organization.
●● Accountants who hold a certificate that allows them to conduct expert work to determine
intentional errors and mistakes made in the financial statements are called:.
Answer:
Certified Fraud Examiners.
●● Which of the following is a certification designed to meet the specific needs of managerial
accountants?.
Answer:
The Certificate in Management Accounting
●● Which of the following certifications do managerial accountants obtain?
a.The Certificate in Management Accounting
b.The Certificate in Public Accounting
c.The Certificate in Internal Auditing
d.All of these answer choices are correct..
Answer:
d.All of these answer choices are correct.
●● Which of the following is an example of a variable cost?
a.Cost of direct materials
b.Factory rent
c.Property tax
d.Depreciation on machinery.
,Answer:
.Cost of direct materials
●● Cost allocation is:.
Answer:
the process of assigning indirect costs to cost objects.
●● Which of the following costs forms a part of prime cost as well as conversion cost?
a.The cost of direct materials and direct labor
b.The cost of direct materials
c.Manufacturing overhead
d.The cost of direct labor.
Answer:
d.The cost of direct labor
●● During May, the cost of goods manufactured was $62,000. The beginning finished goods
inventory for the month was $25,000, and the ending finished goods inventory was $30,000. What
was the cost of goods sold for May?
a.$66,000
b.$117,000
c.$32,000
d.$57,000.
Answer:
d.$57,000
62,000-30,000+25,000=57,000
●● the formula to calculate prime cost?.
Answer:
Prime Cost = Direct Materials + Direct Labor
●● The ending inventories of materials, work-in-process, and finished goods appear:.
Answer:
as current assets on the balance sheet.
●● Which of the following items appear on the income statement of a service firm?
, a.Manufacturing overhead
b.Cost of goods sold
c.Gross margin
d.Operating expenses.
Answer:
d.Operating expenses
●● Impact Corporation reported $440,000 of revenue for the year. Selling expenses amounted to
$53,000, and administrative expenses were $78,000. Cost of goods sold was 44% of revenue.
Impact's gross margin is:
a.$246,400.
b.$309,000.
c.$193,600.
d.$362,000..
Answer:
a.$246,400.
440,000*.44=193,600
440,000-193,000=246,400
●● Super Co. manufactured 10,000 units and reported the following information for December:
Direct materials$36,000
Direct labor25,000
Manufacturing overhead35,000
Beginning work in process inventory28,000
Ending work in process inventory29,000
The prime cost per unit is:
a.$6.00.
b.$3.60.
c.$6.10.
d.$3.50..
Answer:
c.$6.10.
36,000+25,000=61,000
61,000/10,000=6.1
●● Which of the following costs forms a part of prime cost as well as conversion cost?
a.Manufacturing overhead
