Test Bank for Managerial Accounting for Managers, 5th Edition by Noreen – Instant Download

Test Bank
for
Managerial
Accounting
for Managers
5th Edition
By Noreen

,Managerial Accounting for Managers, 5e (Noreen)
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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
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unit of product.
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Answer: TRUE Y 5



Difficulty: 2 Medium
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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 Y 5



AACSB: Reflective
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Thinking
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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
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under consideration.
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Answer: TRUE Y 5



Difficulty: 1 Easy
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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: Remember Y 5



Y AACSB: Reflective
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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 Y 5



Difficulty: 2 Medium
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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 Y 5



AACSB: Reflective
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Thinking
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AICPA: BB Critical Thinking; FN Measurement
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,4) Wages paid to production supervisors would be classified as manufacturing overhead.
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Answer: TRUE Y 5



Difficulty: 1 Easy
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Topic: Cost Classifications for Manufacturing Companies
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Learning Objective:
Y5 01-02 Identify and give examples of each of the three basic
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manufacturing cost categories.
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Bloom's: Understand Y 5



AACSB: Reflective
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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.
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Answer: FALSE Y 5



Difficulty: 2 Medium
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Topic: Cost Classifications for Manufacturing Companies
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Learning Objective:
Y5 01-02 Identify and give examples of each of the three basic
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manufacturing cost categories.
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Bloom's: Remember Y 5



Y AACSB: Reflective
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Thinking
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AICPA: BB Critical Thinking; FN Measurement
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6) The sum of all manufacturing costs except for direct materials and direct labor is
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called manufacturing overhead.
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Answer: TRUE Y 5



Difficulty: 2 Medium
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Topic: Cost Classifications for Manufacturing Companies
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Learning Objective:
Y5 01-02 Identify and give examples of each of the three basic
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manufacturing cost categories.
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Bloom's: Understand Y 5



AACSB: Reflective
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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
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labor, and manufacturing overhead.
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Answer: TRUE Y 5



Difficulty: 1 Easy
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Topic: Cost Classifications for Manufacturing Companies
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Learning Objective:
Y5 01-02 Identify and give examples of each of the three basic
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manufacturing cost categories.
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Bloom's: Remember Y 5



Y AACSB: Reflective
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Thinking
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AICPA: BB Critical Thinking; FN Measurement
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8) Administrative costs are indirect costs. Y5 Y5 Y5 Y5

, Answer: FALSE Y 5



Difficulty: 2 Medium
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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
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manufacturing cost categories.
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Bloom's: Remember Y 5



Y AACSB: Reflective
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Thinking
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AICPA: BB Critical Thinking; FN Measurement
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9) Depreciation is always considered a period cost for external financial reporting purposes
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in a manufacturing company.
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Answer: FALSE Y 5



Difficulty: 2 Medium
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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
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manufacturing cost categories.; 01-03 Understand cost classifications used to prepare
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financial statements: product costs and period costs.
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Bloom's: Understand Y 5



AACSB: Reflective
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Thinking
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AICPA: BB Critical Thinking; FN Measurement
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10) Opportunity costs at a manufacturing company are not part of manufacturing overhead.
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Answer: TRUE Y 5



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
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manufacturing cost categories.; 01-05 Understand cost classifications used in making
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decisions: differential costs, sunk costs, and opportunity costs.
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Bloom's: Understand Y 5



AACSB: Reflective
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Thinking
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AICPA: BB Critical Thinking; FN Measurement
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