ACCT 526 EXAM PREP TEST BANK
VERIFIED QUESTIONS AND CORRECT
ANSWERS
●● Managers in line positions are the ones who:
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
VERIFIED QUESTIONS AND CORRECT
ANSWERS
●● Managers in line positions are the ones who:
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
