Managerial Accounting Assign C1 062112na

Managerial Accounting – Chapter 1: Assignment JACFInstructions: Right T if the statement is true and F if false opposite the corresponding statement number.

1. Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.

2. Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.3. Managerial accounting applies to all forms of business organizations.4. Determining the unit cost of manufacturing a product is an output of financial accounting.5. Managerial accounting internal reports are prepared more frequently than are classified financial statements.6. The management function of organizing and directing is mainly concerned with setting goals and objectives for

the entity.7. The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company.8. Controlling is the process of determining whether planned goals are being met.9. Decision-making is an integral part of the planning, directing, and controlling functions.

10. Both direct labor cost and indirect labor cost are product costs.11. Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing

overhead.12. Raw materials are equal to direct materials minus indirect materials.13. Raw materials that can be conveniently and directly associated with a finished product are called materials

overhead.14. The total cost of a finished product does not generally contain equal amounts of materials, labor, and overhead

costs.15. Direct materials costs and indirect materials costs are manufacturing overhead.16. Period costs include selling and administrative expenses.17. Indirect materials and indirect labor are both inventoriable costs.18. Direct materials and direct labor are the only product costs.19. Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.20. Period costs are not inventoriable costs.21. Ending finished goods inventory appears on both the balance sheet and the income statement of a

manufacturing company.22. The beginning work in process inventory appears on both the balance sheet and the cost of goods manufactured

schedule of a manufacturing company.23. In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net

sales.24. Finished goods inventory does not appear on a cost of goods manufactured schedule.25. If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of

goods manufactured will be less than total manufacturing costs for the period.26. Finished goods inventory for a manufacturing company is equivalent to merchandise inventory for a

merchandising company.27. Raw materials inventory is not an asset until it is used to make a product.28. Raw materials inventory shows the cost of completed goods available for sale to customers.29. The supply chain is all the activities associated with providing a product or service.30. Many companies have significantly lowered inventory levels and costs using just-in-time inventory methods.31. The theory of constraints is used to measure performance.32. The focus of a TQM system is to reduce defects in finished products.33. The balanced scorecard approach attempts to maintain as little inventory on hand as possible.34. In preparing closing entries for a manufacturing company, all revenue and expense account balances are closed

to a Manufacturing Summary account.35. To balance the Cost of Goods Manufactured columns of a worksheet for a manufacturing company, an entry

must be made in the income statement debit column.36. Managerial accounting is primarily concerned with managers and external users.

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37. Planning involves coordinating the diverse activities and human resources of a company to produce a smooth running operation.

38. When the physical association of raw materials with the finished product is too small to trace in terms of cost, they are usually classified as indirect materials.

39. Product costs are also called inventoriable costs.40. Direct materials become a cost of the finished goods manufactured when they are acquired, not when they are

used.41. The sum of the direct materials costs, direct labor costs, and beginning work in process is the total

manufacturing costs for the year.42. In a manufacturing company balance sheet, manufacturing inventories are reported in the current assets section

in the order of their expected use in production.

MULTIPLE CHOICE QUESTIONS43. Managerial accounting applies to each of the following types of businesses except

a. service firms.b. merchandising firms.c. manufacturing firms.d. Managerial accounting applies to all types of firms.

44. Managerial accounting information is generally prepared fora. stockholders.b. creditors.c. managers.d. regulatory agencies.

45. Managerial accounting informationa. pertains to the entity as a whole and is highly aggregated.b. pertains to subunits of the entity and may be very detailed.c. is prepared only once a year.d. is constrained by the requirements of generally accepted accounting principles.

46. The major reporting standard for presenting managerial accounting information isa. relevance.b. generally accepted accounting principles.c. the cost principle.d. the current tax law.

47. Managerial accounting is also calleda. management accounting.b. controlling.c. analytical accounting.d. inside reporting.

48. Which of the following is not an internal user?a. Creditorb. Department managerc. Controllerd. Treasurer

49. Managerial accounting does not encompassa. calculating product cost.b. calculating earnings per share.c. determining cost behavior.d. profit planning.

50. Managerial accounting is applicable to

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a. service entities.b. manufacturing entities.c. not-for-profit entities.d. all of these.

51. Management accountants would nota. assist in budget planning.b. prepare reports primarily for external users.c. determine cost behavior.d. be concerned with the impact of cost and volume on profits.

52. Internal reports must be communicateda. daily.b. monthly.c. annually.d. as needed.

53. Financial statements for external users can be described asa. user-specific.b. general-purpose.c. special-purpose.d. managerial reports.

54. Managerial accounting reports can be described asa. general-purpose.b. macro-reports.c. special-purpose.d. classified financial statements.

55. The reporting standard for external financial reports isa. industry-specific.b. company-specific.c. generally accepted accounting principles.d. department-specific.

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56. Which of the following statements about internal reports is not true?a. The content of internal reports may extend beyond the double-entry accounting system.b. Internal reports may show all amounts at market values.c. Internal reports may discuss prospective events.d. Most internal reports are summarized rather than detailed.

57. In an analogous sense, external user is to internal user as generally accepted accounting principles are toa. timely.b. special-purpose.c. relevance to decision.d. SEC.

58. Internal reports are generallya. aggregated.b. detailed.c. regulated.d. unreliable.

59. A distinguishing feature of managerial accounting isa. external users.b. general-purpose reports.c. very detailed reports.d. quarterly and annual reports.

60. What activities and responsibilities are not associated with management's functions?a. Planningb. Accountabilityc. Controllingd. Directing

61. Planning is a function that involvesa. hiring the right people for a particular job.b. coordinating the accounting information system.c. setting goals and objectives for an entity.d. analyzing financial statements.

62. The managerial function of controllinga. is performed only by the controller of a company.b. is only applicable when the company sustains a loss.c. is concerned mainly with operating a manufacturing segment.d. includes performance evaluation by management.

63. Which of the following is not a management function?a. Constrainingb. Planningc. Controllingd. Directing

64. A manager that is establishing objectives is performing which management function?a. Controllingb. Directingc. Planningd. Constraining

65. The management function that requires managers to look ahead and establish objectives isa. controlling.b. directing.c. planning.

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d. constraining.

66. In determining whether planned goals are being met, a manager is performing the function ofa. planning.b. follow-up.c. directing.d. controlling.

67. Which of the following is not a separate management function?a. Planningb. Directingc. Decision-makingd. Controlling

68. Directing includesa. providing a framework for management to have criteria to terminate employees when needed.b. running a department under quality control standards universally accepted.c. coordinating a company's diverse activities and human resources to produce a smooth-running

operation.d. developing a complex performance ranking system to give certain high performers good raises.

69. Both direct materials and indirect materials area. raw materials.b. manufacturing overhead.c. merchandise inventory.d. sold directly to customers by a manufacturing company.

70. The work of factory employees that can be physically and directly associated with converting raw materials into finished goods isa. manufacturing overhead.b. indirect materials.c. indirect labor.d. direct labor.

71. Which one of the following would not be classified as manufacturing overhead?a. Indirect laborb. Direct materialsc. Insurance on factory buildingd. Indirect materials

72. Manufacturing costs includea. direct materials and direct labor only.b. direct materials and manufacturing overhead only.c. direct labor and manufacturing overhead only.d. direct materials, direct labor, and manufacturing overhead.

73. Which one of the following is not a direct material?a. A tire used for a lawn mowerb. Plastic used in the covered case for a home PCc. Steel used in the manufacturing of steel-radial tiresd. Lubricant for a ball-bearing joint for a large crane

74. Which one of the following is not a cost element in manufacturing a product?a. Manufacturing overheadb. Direct materialsc. Office salariesd. Direct labor

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75. A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n)a. period cost.b. indirect material.c. direct material.d. miscellaneous expense.

76. The wages of a timekeeper in the factory would be classified asa. a period cost.b. direct labor.c. indirect labor.d. compliance costs.

77. Which one of the following is not considered as material costs?a. Partially completed motor engines for a motorcycle plantb. Bolts used in manufacturing the compressor of an enginec. Rivets for the wings of a new commercial jet aircraftd. Lumber used to build tables

78. Which of the following is not a manufacturing cost category?a. Cost of goods soldb. Direct materialsc. Direct labord. Manufacturing overhead

79. As current technology changes manufacturing processes, it is likely that directa. labor will increase.b. labor will decrease.c. materials will increase.d. materials will decrease.

80. For the work of factory employees to be considered as direct labor, the work must be conveniently anda. materially associated with raw materials conversion.b. periodically associated with raw materials conversion.c. physically associated with raw materials conversion.d. promptly associated with raw materials conversion.

81. Which of the following is not classified as direct labor?a. Bottlers of beer in a breweryb. Copy machine operators at a copy shopc. Wages of supervisorsd. Bakers in a bakery

82. Cotter pins and lubricants used irregularly in a production process are classified asa. miscellaneous expense.b. direct materials.c. indirect materials.d. nonmaterial materials.

83. Which of the following is not another name for the term manufacturing overhead?a. Factory overheadb. Pervasive costsc. Burdend. Indirect manufacturing costs

84. Because of automation, which component of product cost is declining?a. Direct laborb. Direct materials

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c. Manufacturing overheadd. Advertising

85. The product cost that is most difficult to associate with a product isa. direct materials.b. direct labor.c. manufacturing overhead.d. advertising.

86. Manufacturing costs that cannot be classified as either direct materials or direct labor are known asa. period costs.b. nonmanufacturing costs.c. selling and administrative expenses.d. manufacturing overhead.

87. Which one of the following is an example of a period cost?a. A change in benefits for the union workers who work in the New York plant of a Fortune 1000

manufacturerb. Workers' compensation insurance on factory workers' wages allocated to the factoryc. A box cost associated with computersd. A manager's salary for work that is done in the corporate head office

88. Which one of the following costs would not be inventoriable?a. Period costsb. Factory insurance costsc. Indirect materialsd. Indirect labor costs

89. Direct materials and direct labor of a company total $6,000,000. If manufacturing overhead is $3,000,000, what is direct labor cost?a. $3,000,000b. $6,000,000c. $0d. Cannot be determined from the information provided

90. Which of the following are period costs?a. Raw materialsb. Direct materials and direct laborc. Direct labor and manufacturing overheadd. Selling expenses

91. Sales commissions are classified asa. overhead costsb. period costs.c. product costs.d. indirect labor.

92. Product costs consist ofa. direct materials and direct labor only.b. direct materials, direct labor, and manufacturing overhead.c. selling and administrative expenses.d. period costs.

93. Which one of the following represents a period cost?a. The VP of Sales' salary and benefitsb. Overhead allocated to the manufacturing operationsc. Labor costs associated with quality controld. Fringe benefits associated with factory workers

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94. Product costs are also calleda. direct costs.b. overhead costs.c. inventoriable costs.d. capitalizable costs.

95. For inventoriable costs to become expenses under the matching principle,a. the product must be finished and in stock.b. the product must be expensed based on its percentage-of-completion.c. the product to which they attach must be sold.d. all accounts payable must be settled.

96. As inventoriable costs expire, they becomea. selling expenses.b. gross profit.c. cost of goods sold.d. sales revenue.

97. A manufacturing company calculates cost of goods sold as follows:a. Beginning FG inventory + cost of goods purchased – ending FG inventory.b. Ending FG inventory – cost of goods manufactured + beginning FG inventory.c. Beginning FG inventory – cost of goods manufactured – ending FG inventory.d. Beginning FG inventory + cost of goods manufactured – ending FG inventory.

98. A manufacturing company reports cost of goods manufactured as a(n)a. current asset on the balance sheet.b. administrative expense on the income statement.c. component in the calculation of cost of goods sold on the income statement.d. component of the raw materials inventory on the balance sheet.

99. The subtotal, "Cost of goods manufactured" appears ona. a merchandising company's income statement.b. a manufacturing company's income statement.c. both a manufacturing and a merchandising company's income statement.d. neither a merchandising nor a manufacturing company's income statement.

100. Cost of goods manufactured in a manufacturing company is analogous toa. Ending inventory in a merchandising company.b. Beginning inventory in a merchandising company.c. Cost of goods available for sale in a merchandising company.d. Cost of goods purchased in a merchandising company.

101. Cost of goods solda. only appears on merchandising companies' income statements.b. only appears on manufacturing companies' income statements.c. appears on both manufacturing and merchandising companies' income statements.d. is calculated exactly the same for merchandising and manufacturing companies.

102. Hollern Combines, Inc. has $10,000 of ending finished goods inventory as of December 31, 2008. If beginning finished goods inventory was $5,000 and cost of goods sold was $20,000, how much would Hollern report for cost of goods manufactured?a. $22,500b. $5,000c. $25,000d. $15,000

103. Cost of goods manufactured is calculated as follows:

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a. Beginning WIP + direct materials used + direct labor + manufacturing overhead + ending WIP.b. Direct materials used + direct labor + manufacturing overhead – beginning WIP + ending WIP.c. Beginning WIP + direct materials used + direct labor + manufacturing overhead – ending WIP.d. Direct materials used + direct labor + manufacturing overhead – ending WIP – beginning WIP.

104. If the amount of "Cost of goods manufactured" during a period exceeds the amount of "Total manufacturing costs" for the period, thena. ending work in process inventory is greater than or equal to the amount of the beginning work in

process inventory.b. ending work in process is greater than the amount of the beginning work in process inventory.c. ending work in process is equal to the cost of goods manufactured.d. ending work in process is less than the amount of the beginning work in process inventory.

105. On the costs of goods manufactured schedule, depreciation on factory equipmenta. is not listed because it is included with Depreciation Expense on the income statement.b. appears in the manufacturing overhead section.c. is not listed because it is not a product cost.d. is not an inventoriable cost.

106. On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n)a. addition to raw materials purchases.b. addition to raw materials available for use.c. subtraction from raw materials available for use.d. subtraction from raw materials purchases.

Use the following information for questions 107–109.Carly Manufacturing Company's accounting records reflect the following inventories:

Dec. 31, 2008 Dec. 31, 2007Raw materials inventory $310,000 $260,000Work in process inventory 300,000 160,000Finished goods inventory 190,000 150,000

During 2008, $500,000 of raw materials were purchased, direct labor costs amounted to $600,000, and manufacturing overhead incurred was $480,000.

107. The total raw materials available for use during 2008 for Carly Manufacturing Company isa. $810,000.b. $260,000.c. $450,000.d. $760,000.

108. Carly Manufacturing Company's total manufacturing costs incurred in 2008 amounted toa. $1,530,000.b. $1,490,000.c. $1,390,000.d. $1,580,000.

109. If Carly Manufacturing Company's cost of goods manufactured for 2008 amounted to $1,390,000, its cost of goods sold for the year isa. $1,500,000.b. $1,250,000.c. $1,350,000.d. $1,430,000.

110. What is work in process inventory generally described as?a. Costs applicable to units that have been started in production but are only partially completedb. Costs associated with the end stage of manufacturing that are almost always complete and ready

for customersc. Costs strictly associated with direct labor

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d. Beginning stage production costs associated with labor costs dealing with bringing in raw materials from the shipping docks

111. Utley Manufacturing Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $516,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Utley Manufacturing Company's cost of goods sold for the year isa. $504,000.b. $528,000.c. $476,000.d. $252,000.

112. Neeley Manufacturing Company reported the following year-end information:

Beginning work in process inventory $1,080,000Beginning raw materials inventory 300,000Ending work in process inventory 900,000Ending raw materials inventory 480,000Raw materials purchased 960,000Direct labor 900,000Manufacturing overhead 600,000

Neeley Manufacturing Company's cost of goods manufactured for the year isa. $2,280,000.b. $2,460,000.c. $2,100,000.d. $2,640,000.

Use the following information for questions 113–115.Hopkins Manufacturing Inc.'s accounting records reflect the following inventories:

Dec. 31, 2007 Dec. 31, 2008Raw materials inventory $ 80,000 $ 64,000Work in process inventory 104,000 116,000Finished goods inventory 100,000 92,000

During 2008, Hopkins purchased $760,000 of raw materials, incurred direct labor costs of $100,000, and incurred manufacturing overhead totaling $128,000.

113. How much is raw materials transferred to production during 2008 for Hopkins Manu-facturing?a. $992,000b. $776,000c. $760,000d. $744,000

114. How much is total manufacturing costs incurred during 2008 for Hopkins?a. $992,000b. $1,004,000c. $988,000d. $1,000,000

115. Assume Hopkins Manufacturing’s cost of goods manufactured for 2008 amounted to $960,000. How much would it report as cost of goods sold for the year?a. $968,000b. $1,000,000c. $1,060,000d. $952,000

116. McNally Manufacturing Company reported the following year-end information:

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Beginning work in process inventory $ 46,000Beginning raw materials inventory 24,000Ending work in process inventory 50,000Ending raw materials inventory 20,000Raw materials purchased 680,000Direct labor 240,000Manufacturing overhead 100,000

How much is McNally Manufacturing’s cost of goods manufactured for the year?a. $684,000b. $1,024,000c. $1,020,000d. $1,028,000

Use the following information for questions 117–118.

Modine Manufacturing Inc.'s accounting records reflect the following inventories:Dec. 31, 2007 Dec. 31, 2008

Raw materials inventory $120,000 $ 96,000Work in process inventory 156,000 174,000Finished goods inventory 150,000 138,000

During 2008, Modine purchased $1,140,000 of raw materials, incurred direct labor costs of $150,000, and incurred manufacturing overhead totaling $192,000.

117. How much is total manufacturing costs incurred during 2008 for Modine?a. $1,488,000b. $1,506,000c. $1,482,000d. $1,500,000

118. How much would Modine Manufacturing report as cost of goods manufactured for 2008?a. $1,464,000b. $1,524,000c. $1,518,000d. $1,488,000

119. Sauder Manufacturing Company reported the following year-end information:Beginning work in process inventory $ 35,000Beginning raw materials inventory 18,000Ending work in process inventory 38,000Ending raw materials inventory 15,000Raw materials purchased 510,000Direct labor 180,000Manufacturing overhead 75,000

How much is Sauder Manufacturing’s total cost of work in process for the year?a. $513,000b. $768,000c. $765,000d. $803,000

120. Hardigan Manufacturing Company reported the following year-end information: beginning work in process inventory, $80,000; cost of goods manufactured, $980,000; beginning finished goods inventory, $50,000; ending work in process inventory, $70,000; and ending finished goods inventory, $40,000. How much is Hardigan’s cost of goods sold for the year?a. $980,000

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b. $990,000c. $970,000d. $1,000,000

Use the following information for questions 121–124.Raw materials inventory, January 1 $ 20,000Raw materials inventory, December 31 40,000Work in process, January 1 18,000Work in process, December 31 12,000Finished goods, January 1 40,000Finished goods, December 31 32,000Raw materials purchases 1,000,000Direct labor 460,000Factory utilities 150,000Indirect labor 50,000Factory depreciation 400,000Selling and administrative expenses 420,000

121. Direct materials used isa. $1,060,000.b. $1,020,000.c. $1,000,000.d. $980,000.

122. Assume your answer to question 121 above is $1,000,000. Total manufacturing costs equala. $2,060,000.b. $2,054,000.c. $1,860,000.d. $2,480,000.

123. Assume your answer to question 122 above is $2,000,000. Cost of goods manufactured equalsa. $1,992,000.b. $1,994,000.c. $2,006,000.d. $2,008,000.

124. Assume your answer to question 123 above is $2,040,000. The cost of goods sold isa. $2,046,000.b. $2,008,000.c. $2,032,000.d. $2,048,000.

Use the following information for questions 125–128:Raw materials inventory, January 1 $ 30,000Raw materials inventory, December 31 60,000Work in process, January 1 27,000Work in process, December 31 18,000Finished goods, January 1 60,000Finished goods, December 31 48,000Raw materials purchases 1,500,000Direct labor 690,000Factory utilities 225,000Indirect labor 75,000Factory depreciation 600,000Selling and administrative expenses 630,000

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125. Direct materials used isa. $1,590,000.b. $1,530,000.c. $1,500,000.d. $1,470,000.

126. Assume your answer to question 125 above is $1,500,000. Total manufacturing costs equala. $3,090,000.b. $3,081,000.c. $2,790,000.d. $3,720,000.

127. Assume your answer to question 126 above is $3,000,000. Cost of goods manufactured equalsa. $2,988,000.b. $2,991,000.c. $3,009,000.d. $3,012,000.

128. Assume your answer to question 127 above is $3,060,000. The cost of goods sold isa. $3,069,000.b. $3,012,000.c. $3,048,000.d. $3,072,000.

129. Samson Company reported total manufacturing costs of $130,000, manufacturing overhead totaling $26,000, and direct materials totaling $32,000. How much is direct labor cost?a. Cannot be determined from the information provided.b. $188,000c. $58,000d. $72,000

130. Given the following data for Mehring Company, compute (A) total manufacturing costs and (B) costs of goods manufactured:

Direct materials used $180,000 Beginning work in process $30,000Direct labor 75,000 Ending work in process 15,000Manufacturing overhead 225,000 Beginning finished goods 38,000Operating expenses 263,000 Ending finished goods 23,000

(A) (B) a. $465,000 $495,000b. $480,000 $465,000c. $480,000 $495,000d. $495,000 $510,000

131. Penner Company reported total manufacturing costs of $195,000, manufacturing overhead totaling $39,000, and direct materials totaling $48,000. How much is direct labor cost?a. Cannot be determined from the information provided.b. $282,000c. $87,000d. $108,000

132. Given the following data for Glennon Company, compute (A) total manufacturing costs and (B) costs of goods manufactured:

Direct materials used $240,000 Beginning work in process $40,000Direct labor 100,000 Ending work in process 20,000Manufacturing overhead 300,000 Beginning finished goods 50,000

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Operating expenses 350,000 Ending finished goods 30,000 (A) (B)

a. $620,000 $660,000b. $640,000 $620,000c. $640,000 $660,000d. $660,000 $680,000

133. Which one of the following does not appear on the balance sheet of a manufacturing company?a. Finished goods inventoryb. Work in process inventoryc. Cost of goods manufacturedd. Raw materials inventory

134. The equivalent of finished goods inventory for a merchandising firm is referred to asa. purchases.b. cost of goods purchased.c. merchandise inventory.d. raw materials inventory.

135. What term describes all activities associated with providing a product or service?a. The manufacturing chainb. The product chainc. The supply chaind. The value chain

136. How have many companies significantly lowered inventory levels and costs?a. They use activity-based costing.b. They utilize an enterprise resource planning system.c. They have a just-in-time method.d. They focus on a total quality management system.

137. Which one of the following managerial accounting approaches attempts to allocate manu-facturing overhead in a more meaningful fashion?a. Theory of constraintsb. Just-in-time inventoryc. Activity-based costingd. Total-quality management

138. What is one primary benefit of an enterprise resource planning (ERP) system?a. It reduces inventory levels.b. It permits companies to be more streamlined in production.c. It replaces research and development in a company.d. It requires an increased emphasis on product quality.

139. What is “balanced” in the balanced scorecard approach?a. The number of products producedb. The emphasis on financial and non-financial performance measurementsc. The amount of costs allocated to productsd. The number of defects found on each product

140. For what purpose is the theory of constraints used?a. To reduce product defectsb. To balance performance measurementc. To identify and manage constraints that bottle-neck operationsd. To reduce inventory levels

141. Which one of the following characteristics would likely be associated with a just-in-time inventory method?

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a. Ending inventory of work in process that would allow several production runsb. A backlog of inventory orders not yet shippedc. Minimal finished goods inventory on handd. An understanding with customers that they may come to the showroom and select from inventory

on hand

142. Which one of the following is a cost that would not likely be associated with computer-integrated manufacturing?a. Manufacturing overhead associated with allocation of equipment depreciationb. Direct labor costs of a welder on the production floorc. Manufacturing overhead associated with allocation of the plant lease to the latest production rund. Direct materials cost with several fuse plates for a new automobile

143. Which one of the following is an activity not associated with TQM?a. Tightening the bolts on a chassis so that the frame will not drop outb. Redesigning the gas tank after fuel efficiency standards are not being metc. Verifying the 10 check points associated with producing the highest quality loaf of breadd. Ensuring that the mattress just manufactured meets the standard of comfort of a random factory

line worker

144. What is ERP’s primary benefit?a. It can eliminate stand alone systems that do not share information easily for manage-ment’s use.b. It allows management to rely on the simplest way to utilize information systems in a manufacturing

environment.c. It permits line workers to perform accounting and marketing tasks.d. It calculates year end bonuses to a precision not available in traditional information systems

management.

145. Some companies implement systems to reduce defects in finished products with the goal of achieving zero defects. What are these systems called?a. Activity-based costing systemsb. Enterprise resource planning systemsc. Value chain systemsd. Total quality management systems

146. Many companies now manufacture products that are untouched by human hands. What do they use to achieve this?a. Activity-based costingb. Computer-integrated manufacturingc. Enterprise resource planning systemsd. Total quality management systems

a147. When a company prepares a worksheet for a manufacturing company, to which column is the Indirect Labor account extended?a. To the adjustment columnsb. To the income statement columnsc. To the cost of goods manufactured columnsd. To the balance sheet columns

a148. When a worksheet is prepared for a manufacturing company, an offsetting entry must be made to balance the cost of goods manufactured columns. Where does the offsetting entry appear?a. In the balance sheet debit columnb. In the income statement debit columnc. In the balance sheet credit columnd. In the income statement credit column

a149. Which one of the following accounts would not appear in the cost of goods manufactured columns of a worksheet?a. Ending Work in Process Inventory

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b. Ending Finished Goods Inventoryc. Raw Materials Inventoryd. Direct Labor

a150. When making closing entries for a manufacturing company, to which account do all accounts that appear on the cost of goods manufactured schedule get closed?a. Income Summaryb. Materials, Labor, and Overheadc. Manufacturing Summaryd. Finished Goods Inventory

151. Financial and managerial accounting are similar in that botha. have the same primary users.b. produce general-purpose reports.c. have reports that are prepared quarterly and annually.d. deal with the economic events of an enterprise.

152. The function that pertains to keeping the activities of the enterprise on track isa. planning.b. directing.c. controlling.d. accounting.

153. Property taxes on a manufacturing plant are an element of aProduct Cost Period Cost

a. Yes Nob. Yes Yesc. No Yesd. No No

154. For a manufacturing company, which of the following is an example of a period cost rather than a product cost?a. Depreciation on factory equipmentb. Wages of salespersonsc. Wages of machine operatorsd. Insurance on factory equipment

155. For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory toa. cost of goods purchased.b. cost of goods manufactured.c. net purchases.d. total manufacturing costs.

156. If the cost of goods manufactured is less than the cost of goods sold, which of the following is correct?a. Finished Goods Inventory has increased.b. Work in Process Inventory has increased.c. Finished Goods Inventory has decreased.d. Work in Process Inventory has decreased.

157. The principal difference between a merchandising and a manufacturing income statement is thea. cost of goods sold section.b. extraordinary item section.c. operating expense section.d. revenue section.

158. If the total manufacturing costs are greater than the cost of goods manufactured, which of the following is correct?

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a. Work in Process Inventory has increased.b. Finished Goods Inventory has increased.c. Work in Process Inventory has decreased.d. Finished Goods Inventory has decreased.

159. The sum of the direct materials costs, direct labor costs, and manufacturing overhead incurred is thea. cost of goods manufactured.b. total manufacturing overhead.c. total manufacturing costs.d. total cost of work in process.

160. The inventory accounts that show the cost of completed goods on hand and the costs applicable to production that is only partially completed are, respectivelya. Work in Process Inventory and Raw Materials Inventory.b. Finished Goods Inventory and Raw Materials Inventory.c. Finished Goods Inventory and Work in Process Inventory.d. Raw Materials Inventory and Work in Process Inventory.

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Managerial Accounting Assign C1 062112na

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