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Test Bank for Managerial Accounting 13th Edition by WarrenComplete downloadable file at: HYPERLINK "" ANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticManagerial accounting uses only past data in reports to aid management in the decision making process.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticManagerial accounting information includes both historical and estimated data.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticSince there are few rules to restrict how an organization chooses to arrange its own internal data for decisionmaking, managerial accounting provides ample opportunity for creativity and change.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticA diagram of the operating structure of an organization is called an organization chart.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIn most business organizations, the chief accountant is called the treasurer.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIn most business organizations, the chief management accountant is called the controller.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticA staff department or unit is one that provides services, assistance, and advice to the departments with line or otherstaff responsibilities.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe vice presidents of production and sales and the controller hold line positions in most large organizations.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticA staff department has no direct authority over a line department.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe controller's staff consists of management accountants responsible for systems and procedures, generalaccounting, budgets, taxes, and cost accounting.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticManagerial accounting reports must be useful to the user of the information.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticPlanning is the process of monitoring operating results and comparing actual results with the expected results.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticPlanning is the process of developing the company’s objectives or goals and translating these objectives intocourses of action.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticControlling deals with choosing goals and deciding how to achieve them.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticControlling is the process of monitoring operating results and comparing actual results with the expected results.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticManagerial accounting provides useful information to managers on product costs.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe payment of dividends is an example of a cost.TrueFalseANSWER:FalseDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticA cost can be a payment of cash for the purpose of generating revenues.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticGoods that are part way through the manufacturing process, but not yet complete, are referred to as materialsinventory.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factoryoverhead cost.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe cost of materials entering directly into the manufacturing process is classified as factory overhead cost.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe cost of wages paid to employees directly involved in converting materials to finished product is classified asdirect labor cost.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIf the cost of employee wages is not a significant portion of the total product cost, the wages are classified as directmaterials cost.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticFor a construction contractor, the wages of carpenters would be classified as factory overhead cost.TrueFalseANSWER:FalseDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticFor an automotive repair shop, the wages of mechanics would be classified as direct labor cost.TrueFalseANSWER:TrueDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticCosts other than direct materials cost and direct labor cost incurred in the manufacturing process are classified asfactory overhead cost.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticDepreciation on factory plant and equipment is an example of factory overhead cost.TrueFalseANSWER:TrueDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticCost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost.TrueFalseANSWER:FalseDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIf the cost of materials is not a significant portion of the total product cost, the materials may be classified as part offactory overhead cost.TrueFalseANSWER:TrueDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticFactory overhead cost is sometimes referred to as factory burden.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticConversion cost is the combination of direct labor cost and factory overhead cost.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticConversion cost is the combination of direct materials cost and factory overhead cost.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticFactory overhead is an example of a product cost.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticDirect labor costs are included in the conversion costs of a product.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe costs of materials and labor that do not enter directly into the finished product are classified as factoryoverhead.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe costs of materials and labor that do not enter directly into the finished product are classified as cost of goodssold.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIndirect labor would be included in factory overhead.TrueFalseANSWER:TrueDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticA cost object indicates how costs are related or identified.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticDirect costs can be specifically traced to a cost object.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIndirect costs can be specifically traced to a cost object.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticPeriod (nonmanufacturing) costs are classified into two categories: selling and administrative.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticPrime costs are the combination of direct labor costs and factory overhead costs.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticPrime costs are the combination of direct materials and direct labor costs.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticConversion costs are the combination of direct labor, direct material, and factory overhead costs.a.?Trueb.?FalseANSWER:??FalseDIFFICULTY:??EasyBloom’s: RememberingLEARNING?OBJECTIVES:??ACCT.WARD.16.18-02 - 18-02ACCREDITING?STANDARDS:??ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticManufacturers use machinery and labor to convert direct materials into finished products.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticPeriod costs include direct materials and direct labor.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticPeriod costs can be found on both the balance sheet and the income statement.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticProduct costs are not expensed until the product is sold.TrueFalseANSWER:TrueDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe plant manager’s salary in a manufacturing business would be considered an indirect cost.TrueFalseANSWER:TrueDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticOperating expenses are product costs and are expensed when the product is sold.TrueFalseANSWER:FalseDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticPeriod costs are operating costs that are expensed in the period in which the goods are sold.TrueFalseANSWER:FalseDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticFactory overhead includes all manufacturing costs except direct materials and direct labor.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticLabor costs that are directly traceable to the product are part of factory overhead.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticProduct costs include direct labor and advertising expense.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIndirect labor and indirect materials would be part of factory overhead.TrueFalseANSWER:??TrueDIFFICULTY:??EasyBloom’s: RememberingLEARNING?OBJECTIVES:??ACCT.WARD.16.18-02 - 18-02ACCREDITING?STANDARDS:??ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticPrime costs consist of factory overhead and direct labor.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticConversion costs consist of product costs and period costs.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticPrime costs consists of direct materials, indirect materials, and direct labor.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticOnly the value of the inventory that is sold will appear on the income statement.TrueFalseANSWER:TrueDIFFICULTY:ModerateBloom’s: RememberingLEARNING?OBJECTIVES:??ACCT.WARD.16.18-03 - 18-03ACCREDITING?STANDARDS:??ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticOn the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overheadare categorized as either materials inventory, work in process inventory, or finished goods inventory.TrueFalseANSWER:TrueDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe statement of cost of goods manufactured is an extension of the income statement for a manufacturingcompany.TrueFalseANSWER:TrueDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticManagers use managerial information to evaluate performance of a company’s operation.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-04 - 18-04ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticManagerial information is for external as well as internal stakeholders.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-04 - 18-04ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticA report analyzing how many products need to be sold to cover operating costs is not typically a managerialaccounting report.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-04 - 18-04ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticA report analyzing the dollar savings of purchasing new equipment to speed up the production process is amanagerial accounting report.TrueFalseANSWER:TrueDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-04 - 18-04ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticA performance report that identifies the amount of employee downtime is a financial accounting report.TrueFalseANSWER:FalseDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-04 - 18-04ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIn order to be useful to managers, managerial accounting reports should possess all of the following characteristicsexceptprovide objective measures of past operations and subjective estimates about future decisionsbe prepared in accordance with generally accepted accounting principlesbe provided at any time management needs informationbe prepared to report information for any unit of the business to support decision makingANSWER:bDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhat is the primary criterion for the preparation of managerial accounting reports?relevance of the reportsmanager needstiming of the reportscost of the reportsANSWER:bDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following is most associated with managerial accounting?must follow GAAPmay rely on estimates and forecastsis prepared for users outside the organization.always reports on the entire entityANSWER:bDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following is most associated with financial accounting?can have both objective and subjective informationcan be prepared periodically, or as neededprepared in accordance with GAAPcan be prepared for the entity or segmentANSWER:cDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following statements is false?There is no overlap between financial and managerial accounting.Managerial accounting sometimes relies on past information.Managerial accounting does not need to conform to GAAP.Financial accounting must conform to GAAP.ANSWER:aDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIn most business organizations, the chief management accountant is called thechief accounting officercontrollerchairman of the boardchief executive officerANSWER:bDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticAll of the following employees hold line positions in Facebook exceptvice president of productionvice president of financemanager of the web designvice president of salesANSWER:bDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe controller's staff often consists of several management accountants. All of the following would most likely beon the controller's staff exceptgeneral accountantsbudgets and budget analystsinvestments and shareholder relations managerscost accountantsANSWER:cDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticManagerial accounting reports areprepared according to GAAPprepared according to management needsprepared periodically onlyrelated to the entire business entity onlyANSWER:bDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWho are the individuals charged with the responsibility for directing the day-to-day operations of a business?investorsmanagersshareholderscustomersANSWER:bDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following are basic phases of the management process?supervising and directingdecision making and supervisingorganizing and directingplanning and controllingANSWER:dDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhat term is used to describe the process of monitoring operating results and comparing actual results with theexpected results?improvingcontrollingdirectingplanningANSWER:bDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticAccounting designed to meet the needs of decision makers inside the business isgeneral accountingfinancial accountingmanagerial accountingexternal accountingANSWER:cDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhat term is used to describe the process of developing the organization’s objectives and translating those intocourses of action?supervisingplanningimprovingdecision makingANSWER:bDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following is the principle reason for preparing managerial accounting reports?usefulness to managementcost of preparationclarityGAAPANSWER:aDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe primary goal of managerial accounting is to provide information toinvestorscreditorsmanagementexternal auditorsANSWER:cDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following is nota characteristic of useful managerial accounting reports?accurateGAAP—adheringhistorical and estimated dataprepared as neededANSWER:bDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticCompute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $196,300; FactoryOverhead, $187,900; and Selling Expenses, $45,290.a. $543,800b. $187,900c. $731,700d. $384,200ANSWER:dDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following is nottrue in regards to direct materials for a bakery?Flour and sugar would probably be direct materials.Eggs would probably be a direct materialOil to lubricate factory machines would not be a direct material.Paper cupcake liners, that become part of the product, must be accounted for as direct materials.ANSWER:dDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe cost of a manufactured product generally consists of which of the following costs?direct materials cost and factory overhead cost onlydirect labor cost and factory overhead cost onlydirect labor cost, direct materials cost, and factory overhead costdirect materials cost and direct labor cost onlyANSWER:cDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticMaterials must have which two qualities in order to be classified as direct materials?They must be classified as both prime costs and conversion costs.They must be introduced into the process in both work-in-process inventories and finished goods inventories.They must be an integral part of the finished product, but can be an insignificant portion of the total productcost.They must be an integral part of the finished product and be a significant portion of the total product cost.ANSWER:dDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following is an example of direct materials cost for an automobile manufacturer?cost of oil lubricants for factory machinerycost of wages of assembly workersalary of production supervisorcost of interior upholsteryANSWER:dDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticA plant manager’s salary isa direct cost and an indirect costa direct costan indirect costa period costANSWER:cDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIf the cost of a direct material is a small portion of total production cost, it may be classified as part ofdirect labor costselling and administrative costsmiscellaneous costsfactory overhead costANSWER:dDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe cost of wages paid to employees directly involved in the manufacturing process in converting materials intofinished products is classified asfactory overhead costdirect labor costmiscellaneous costsdirect materials costANSWER:bDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following is an example of direct labor cost for a cell phone manufacturer?cost of oil lubricants for factory machinerycost of wages of assembly workersalary of plant supervisorcost of phone componentsANSWER:bDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticCosts other than direct materials cost and direct labor cost incurred in the manufacturing process are classified asfactory overhead costmiscellaneous expenseproduct costsperiod costANSWER:aDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following is an example of a factory overhead cost?repair and maintenance cost on the administrative buildingfactory heating and lighting costinsurance premiums on salespersons' automobilespresident's salaryANSWER:bDIFFICULTY:ChallengingBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticPeriod costs includecurrent assets on the balance sheetcurrent liabilities on the balance sheetoperating costs that are shown on the income statement when products are soldoperating costs that are shown on the income statement in the period in which they are incurredANSWER:dDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticAnother term for factory overhead issurplusperiod costsupervisory costfactory burdenANSWER:dDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following costs are conversion costs?direct labor cost and factory overhead costdirect materials cost and direct labor costfactory overhead costdirect materials cost and factory overhead costANSWER:aDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticGoods that are partially completed by a manufacturer aremerchandise inventorywork in process inventoryfinished goods inventorymaterials inventoryANSWER:bDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhat term refers to the cost of changing direct materials into a finished manufactured product?factory overhead costperiod costconversion costdirect labor costANSWER:cDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following items would notbe classified as part of factory overhead?direct labor usedamortization of manufacturing patentsproduction supervisors' salariesfactory supplies usedANSWER:aDIFFICULTY:ChallengingBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following is part of factory overhead cost?sales commissionsdepreciation of factory equipment and machinesdepreciation of sales person's vehicledirect materials usedANSWER:bDIFFICULTY:ChallengingBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following manufacturing costs is an indirect cost of producing a product?oil lubricants used for factory machinerycommissions for sales personnelhourly wages of an assembly workermemory chips for a microcomputer manufacturerANSWER:aDIFFICULTY:ChallengingBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticAll of the following could be considered a direct material exceptsteelfabricgluelumberANSWER:cDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticPrime costs aredirect materials and factory overheaddirect materials and direct labordirect labor and factory overheadperiod costs and factory overheadANSWER:bDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticA product cost isexpensed in the period in which it is manufacturedshown with current liabilities on the balance sheetshown with operating expenses on the income statementexpensed in the period the product is soldANSWER:dDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticConversion costs aredirect materials and direct labordirect materials and factory overheadfactory overhead and direct labordirect materials and indirect laborANSWER:cDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following is nota prime cost?plant janitor’s wagesdirect labor wagesmachine operator wagesassembly line wagesANSWER:aDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe Darwin Company reports the following information:Sales$76,500Direct materials used7,300Depreciation on factory equipment4,700Indirect labor5,900Direct labor10,500Factory rent4,200Factory utilities1,200Sales salaries expense15,600Office salaries expense8,900Indirect materials1,200Product costs area. $24,500b. $30,300c. $29,200d. $35,000ANSWER:dDIFFICULTY:EasyBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticProduct costsappear only on the balance sheetappear only on the income statementare expensed as costs are incurred for direct labor, direct material, and factory overheadappear on both the income statement and balance sheetANSWER:dDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe following are all product costs exceptdirect materialssales and administrative expensesdirect laborfactory overheadANSWER:bDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIndirect labor and indirect materials are classified asfactory overhead and product costsfactory overhead and period costsoperating costs and period costsoperating costs and product costsANSWER:aDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticAn example of a period cost isadvertising expenseindirect materialsdepreciation on factory equipmentproperty taxes on plant facilitiesANSWER:aDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticDirect labor and direct materials areproduct costs and expensed when the goods are soldproduct costs and expensed when incurredperiod costs and expensed when incurredperiod costs and expensed when the goods are soldANSWER:aDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIndirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated asperiod costs and expensed when incurredproduct costs and expensed when the goods are soldproduct costs and expensed when incurredperiod costs and expensed when the goods are soldANSWER:bDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticRent expense on a factory building would be treated as a(n)period costproduct costindirect costdirect material costANSWER:bDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticInsurance expense incurred on a factory building would be treated as adirect costperiod costproduct costselling costANSWER:cDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticJensen Company reports the following:Direct materials used$345,000Direct labor incurred250,000Factory overhead incurred400,000Operating expenses175,000Jensen Company’s period costs area. $345,000b. $250,000c. $400,000d. $175,000ANSWER:dDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following is nota factory overhead cost?materials used directly in the manufacturing process of the productinsurance on factory equipmentsalaries of production supervisorsproperty tax on factory buildingANSWER:aDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticFactory overhead includesfactory rent and direct labordirect materials and direct laborindirect materials and direct materialsindirect labor and indirect materialsANSWER:dDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe Darwin Company reports the following information:Sales$76,500Direct materials used7,300Depreciation on factory equipment4,700Indirect labor5,900Direct labor10,500Factory rent4,200Factory utilities1,200Sales salaries expense15,600Office salaries expense8,900Indirect materials1,200Period costs area. $24,500b. $30,300c. $29,200d. $35,000ANSWER:aDIFFICULTY:EasyBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticJensen Company reports the following:Direct materials used$345,000Direct labor incurred250,000Factory overhead incurred400,000Operating expenses175,000Jensen Company’s product costs area. $995,000b. $920,000c. $825,000d. $770,000ANSWER:aDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticAll of the following are examples of indirect labor exceptmaintenance personneljanitorial personnelmachine operatorsplant managersANSWER:cDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following accounts will be found on the income statement?InventoryWork in ProcessFinished GoodsCost of Goods SoldANSWER:dDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticGiven the following data:Cost of materials used$45,000Direct labor costs48,000Factory overhead39,000Work in process, beg.28,000Work in process, end.18,000Finished goods, beg.28,000Finished goods, end.18,000What is cost of goods sold?a. $152,000b. $142,000c. $10,000d. $128,000ANSWER:aDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticGiven the following data:Beginning raw materials inventory$30,000Materials purchased65,000Ending raw materials inventory40,000What is the amount of raw materials used?a. $5,000b. $55,000c. $75,000d. $30,000ANSWER:bDIFFICULTY:EasyBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticA company manufactured 50,000 units of a product at a cost of $450,000. It sold 45,000 units at $15 each. Thegross profit isa. $750,000b. $240,000c. $600,000d. $270,000ANSWER:dDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe following information is taken from the financial records of Gunner Manufacturing:Cost of materials used$45,000Direct labor costs48,000Factory overhead39,000Work in process, beg.18,000Work in process, end.28,000What is cost of goods manufactured?a. $178,000b. $132,000c. $122,000d. $142,000ANSWER:cDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following are reported on the income statement as part of cost of goods?administrative expensesperiod costscost of goods manufacturedoperating expensesANSWER:cDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhat is the purpose of the statement of cost of goods manufactured?to determine the ending materials inventoryto determine the ending work in process inventoryto determine the amounts transferred to finished goodsall of theseANSWER:cDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticCosts on the income statement for both a merchandiser and a manufacturer would beoperating expensesdirect materialsdirect labor incurredcost of goods manufacturedANSWER:aDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticOn the income statement of a manufacturing company, what replaces purchases in the cost of goods sold section ofa retail company?finished goodscost of merchandise availablecost of goods manufacturedwork in processANSWER:cDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticCost of goods sold for a manufacturer equals cost of goods manufactured plusbeginning work in process inventory less ending work in process inventoryending work in process inventory less beginning work in process inventorybeginning finished goods inventory less ending finished goods inventoryending finished goods inventory less beginning finished goods inventoryANSWER:cDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticGiven the following data:Work in process, beginning$14,000Work in process, ending20,000Direct labor costs4,000Cost of goods manufactured8,000Factory overhead8,000Direct materials used isa. $2,000b. $4,000c. $8,000d. $14,000ANSWER:aDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticCost of goods manufactured is equal tototal manufacturing costs plus ending materials inventory less beginning materials inventorycost of goods sold plus beginning work in process inventory less ending work in process inventorytotal manufacturing costs plus ending work in process inventory less beginning work in process inventorytotal manufacturing costs plus beginning work in process inventory less ending work in process inventoryANSWER:dDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticFinished goods inventory is reported on theincome statement as a period costbalance sheet as a long-term assetbalance sheet as a current assetincome statement as revenueANSWER:cDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticBeginning work in process is equal tocost of goods manufactured plus ending work in process minus manufacturing costs incurred during thecurrent periodcost of goods manufactured minus ending work in process plus manufacturing costs incurred during thecurrent periodending work in process plus manufacturing costs incurred during the current periodmanufacturing costs incurred during the current period minus ending work in processANSWER:aDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticAll of the following would be reported on the balance sheet as a current asset exceptfactory overheadmaterials inventoryfinished goods inventorywork in process inventoryANSWER:aDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticSmith Company reports the following information:Cost of goods manufactured$68,250Direct materials used27,000Direct labor incurred25,000Work in process inventory, January 111,000Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31, isa. $16,250b. $8,500c. $18,750d. $13,500ANSWER:dDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticAt the beginning of the current year, the Grant Company’s work in process inventory account had a balance of$30,000. During the year, $68,000 of direct materials were used in production, and $66,000 of direct labor costswere incurred. Factory overhead for the year amounted to $90,000. Cost of goods manufactured is $230,000. Thebalance in work in process inventory on December 31 isa. $24,000b. $44,000c. $66,000d. $36,000ANSWER:aDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticA company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factoryoverhead costs during the period. If beginning and ending work in process inventories were $28,000 and $32,000,respectively, the cost of goods manufactured wasa. $218,000b. $226,000c. $190,000d. $222,000ANSWER:aDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticCost of goods manufactured during the year is $240,000 work in process inventory on December 31 is $50,000.Work in process inventory during the year decreased by 60%. Total manufacturing costs incurred area. $190,000b. $165,000c. $290,000d. $315,000ANSWER:bDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWork in process inventory on December 31 of the current year is $44,000. Work in process inventory increased by60% during the year. Cost of goods manufactured amounts to $275,000. What are the total manufacturing costsincurred in the current year?a. $291,500b. $302,000c. $275,750d. $233,750ANSWER:aDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWork in process inventory on December 31 is $42,000. Work in process inventory decreased by 40% during theyear. Total manufacturing costs incurred amount to $260,000. What is the cost of goods manufactured?a. $232,000b. $302,000c. $288,000d. $190,000ANSWER:cDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWork in process inventory increased by $20,000 during the current year. Cost of goods manufactured was$180,000. Total manufacturing costs incurred area. $198,000b. $160,000c. $189,000d. $200,000ANSWER:dDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following will notbe found on the balance sheet of a manufacturing company?cost of goods soldmaterialswork in processfinished goodsANSWER:aDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticA company sells goods for $150,000 that cost $54,000 to manufacture. Which statement is true?The company will recognize sales on the balance sheet of $150,000.The company will recognize $96,000 gross profit on the balance sheet.The company will decrease finished goods by $54,000.The company will increase finished goods by $54,000.ANSWER:cDIFFICULTY:ChallengingBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finishedgoods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Costof goods manufactured during the period wasa. $233,000b. $225,600c. $288,800d. $240,400ANSWER:bDIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticManagers used managerial information for all of the following exceptto evaluate the company’s stock performanceto analyze the performance of a company’s operationsto support long-term planning decisionsto determine the cost of manufacturing a productANSWER:aDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-04 - 18-04ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticManagerial accountants could prepare all of the following reports excepta performance report identifying amounts of scrapa control report comparing direct material usage over timea sales report targeting monthly sales and potential bonusesan annual report for external regulators such as the SECANSWER:dDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-04 - 18-04ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWhich of the following would be least likely to be considered a managerial accounting report?a report to analyze potential efficiencies and savings for the purchase of new production equipmenta schedule of total manufacturing costs incurreda statement of cost of goods manufactureda statement of stockholders’ equityANSWER:dDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-04 - 18-04ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe phases of the management process are listed below. Match each phase to the appropriate description.PlanningDirectingControllingImprovingDecision makingUsed by managers for continuous improvementManagers must decide how to respond to unfavorable performancesc) Used by management to develop the organization’s objectives and goalsMonitoring the operating results of implemented plans and comparing actual results to expected resultsProcess by which managers run day-to-day operationsANSWER:cPlanningeDirectingdControllingImprovingDecision makingDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: Analytic153.?What is decision making? Who is responsible for decision making in a managerial situation??ANSWER:??Inherent in each management process (planning, directing, controlling, and improving)? is decision making. In managing a company, management must continually decide among alternative actions. For example, in directing operations, managers must continually decide on an operating structure, training procedures, and staffing of day-to-day operations.DIFFICULTY:??EasyBloom's: RememberingLEARNING?OBJECTIVES:??FNMN.WARD.16.16-01 - LO: 16-01ACCREDITING?STANDARDS:??ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticDifferentiate between financial and managerial accounting, addressing such issues as users, nature of information,guidelines for preparation, timeliness and focus of reporting.ANSWER:?Managerial AccountingFinancial AccountingUsersManagementExternal users and company managementNature of informationObjective and subjectiveObjectiveGuidelines for preparationPrepared according to management needsPrepared according to GAAP?TimelinessPrepared at fixed intervals and on an as-needed basisPrepared at fixed intervalsFocus of reportingCompany as a whole or as a segmentCompany as a wholeDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-01 - 18-01ACCREDITING STANDARDS:ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: Analytic155.?Differentiate between a line department and a staff department.?ANSWER:??A line department is directly involved in providing goods or services to the customers of the company. Individuals in a line position are responsible for manufacturing and selling a company's products. Examples of a line position include senior vice president of equipment, ?plant manager, and managing director.?A staff department provides services, assistance, and advice to the departments with line or other staff responsibilities. A staff department has no direct authority over a line department. Examples of staff positions include chief administrative office, vice president of human relations, chief financial officer, and controller.DIFFICULTY:??ModerateBloom's: RememberingLEARNING?OBJECTIVES:??FNMN.WARD.16.16-01 - LO: 16-01ACCREDITING?STANDARDS:??ACCT.ACBSP.APC.25 - Managerial Characteristics/TerminologyACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIdentify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a lawn mowermanufacturer.WheelsDepreciation on worker's toolsWages of assemblersGrease for wheel axlesANSWER:1. Direct materialFactory overheadDirect laborFactory overheadDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIdentify the following costs as (a) prime cost, (b) conversion cost, or (c) both for a cake factory.FrostingWages of the bakerSprinkles for the topping (considered an indirect material)Depreciation on ovenANSWER:1. acbbDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticClassify the following costs as direct, indirect, or neither:a)labor for machine maintenanceb)factory equipment depreciationc)materials not traceable to specific productsd)office equipment depreciatione)materials traceable to specific productsf)insurance expired on administrative facilitiesg)product assembly labor incurredh)administrative office salariesi)salespersons’ salariesj)utilities on factory buildingk)utilities on administrative facilitiesANSWER:a) indirectindirectindirectneitherdirectneitherdirectneitherneitherindirectneitherDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: Analytic159.?Differentiate between period and product costs, including examples of each type of cost.?ANSWER:??Period costs consist of selling and administrative expenses. Selling expenses are incurred in marketing the product and delivering the product to customers. Administrative expenses are incurred in managing the company and are not directly related to the manufacturing or selling functions. Selling expenses include advertising expenses, sales salaries expenses, and commissions expenses. Administrative expenses include office salaries expenses, office supplies expense, and depreciation expense of the office building and equipment.?Product costs consist of manufacturing costs: direct materials, direct labor, and factory overhead. Direct materials are the materials that go into the production of the product. The direct materials for a bakery include flour, sugar, eggs, and shortening. Direct labor costs are the wages or salaries of the employees that are actually assembling the product. Factory overhead would include the salaries of production supervisors, depreciation, insurance, and taxes on the manufacturing building and equipment.DIFFICULTY:??ModerateBloom's: RememberingLEARNING?OBJECTIVES:??FNMN.WARD.16.16-02 - LO: 16-02ACCREDITING?STANDARDS:??ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticDifferentiate between:direct materials versus indirect materialsdirect labor versus indirect laborANSWER:a) Direct materials must become a physical part of the finished product and theircosts must be separately and conveniently traceable through the manufacturingprocess to finished goods inventory. Examples include wood, leather, steel, etc.Indirect materials become part of the finished product but their minor costs cannotconveniently be traced directly to particular finished products. They are includedas part of factory overhead.b) Direct labor cost is the compensation of employees who physically convertmaterials into the company’s products and whose effort can be traced directly tofinished goods inventory. Examples include machine operators and assemblers.Indirect labor is factory labor that is difficult to trace to specificproducts. Instead, the cost is included in factory overhead. Examples includeforklift operators, janitors, and plant managers.DIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticMatch each description to the appropriate term (a-d).direct materialsselling and administrative expensefactory overheaddirect labor(1)rent expense on factory building(2)sales supplies used(3)factory supplies used(4)indirect materials used(5)wages of assembly line personnel(6)cost of primary material used to make product(7)depreciation on office equipment(8)rent on office facilities(9)insurance expired on factory equipment(10)utilities incurred in the office(11)advertising expenseANSWER:(1) cbccdabbcbbDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe Putney Company reports the following information:Sales$76,500Direct materials used7,300Depreciation on factory equipment4,700Indirect labor5,900Direct labor10,500Factory rent4,200Factory utilities1,200Sales salaries expense15,600Office salaries expense8,900Indirect materials1,200Compute:product costsperiod costsANSWER:a) product costs = $7,300 + $4,700 + $5,900 + $10,500 + $4,200 + $1,200 + $1,200= $35,000b) period costs = $15,600 + $8,900 = $24,500DIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticIdentify the following costs as a (a) product cost or (b) period cost for a cake factory.1.Frosting2. _____ Baker’s wagesAdvertising feesTransportation outANSWER:1. aabbDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticClassify the following costs as either a product cost or a period cost:a)direct materials usedb)factory utilitiesc)salespersons’ commissionsd)salary of plant managere)indirect materials usedf)depreciation on store equipmentg)indirect labor incurredh)advertising expensei)direct labor incurredj)factory machinery repairs and maintenancek)depreciation on factory machineryl)plant insurance expiredANSWER:a) productproductperiodproductproductperiodproductperiodproductproductproductproductDIFFICULTY:ModerateBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe following information is available for Carter Corporation:Materials inventory decreased $4,000.Materials inventory on December 31 was 50% of materials inventory on January 1.Beginning work in process inventory was $145,000.Ending finished goods inventory was $65,000.Purchases of direct materials were $154,700.Direct materials used were 2.5 times the cost of direct labor.Total manufacturing costs incurred were $246,400, 80% of cost of goods manufactured and $156,000 less thancost of goods pute:Finished goods inventory on January 1Work in process inventory on December 31Direct labor incurredFactory overhead incurredMaterials inventory on January 1Materials inventory on December 31Direct materials usedANSWER:(a) Cost of goods sold = $246,400 + $156,000 = $402,400Cost of goods manufactured = $246,400/0.80 = $308,000Finished goods inventory on January 1 = $402,400 + $65,000 – $308,000 =$159,400Work in process inventory on December 31$246,400 + $145,000 – $308,000 = $83,400Direct labor incurred = $158,700/2.5 = $63,480Factory overhead incurred = $246,400 – $158,700 – $63,480 = $24,220Direct materials used = $8,000 + $154,700 – $4,000 = $158,700Materials inventory on January 1X = January 1 materials inventory$4,000 = 0.5XX = $8,000(g) Materials inventory on December 31 = $8,000 – $4,000 = $4,000DIFFICULTY:ChallengingBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe Zoe Corporation has the following information for the month March. Determine the (a) cost of goodsmanufactured, and (b) cost of goods sold.Cost of materials placed in production$69,000Direct labor27,000Factory overhead34,000Work in process, March 115,000Work in process, March 3119,500Finished goods inventory, March 125,000Finished goods inventory, March 3123,000ANSWER:(a)Beginning work in process inventory$ 15,000Direct materials$69,000Direct labor27,000Factory overhead34,000Total manufacturing costs incurred130,000Total manufacturing costs$145,000Less ending work in process inventory19,500Cost of goods manufactured$125,500(b)Finished goods inventory, March 1$ 25,000Cost of goods manufactured125,500Cost of finished goods available for sale$150,500Less finished good inventory, March 3123,000Cost of goods sold$127,500DIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticSienna Company has the following information for January:Cost of materials placed in production$20,000Direct labor15,000Factory overhead24,000Work in process inventory, January 12,900Work in process inventory, January 313,500Calculate the cost of goods manufactured.ANSWER:Beginning work in process inventory?$? 2,900Direct materials$20,000?Direct labor15,000?Factory overhead?24,000?Total manufacturing costs incurred??59,000Total manufacturing costs?$61,900Less ending work in process inventory?? ?3,500Cost of goods manufactured?$58,400DIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticMagnus Industries has the following data:Beginning raw materials inventory$75,000Materials purchased40,000Ending raw materials inventory60,000Calculate the cost of raw materials used.ANSWER:Raw Materials Used = $75,000 + $40,000 – $60,000 = $55,000DIFFICULTY:EasyBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticWatson Company has the following data:Work in process, beginning$18,000Work in process, ending25,000Direct labor costs incurred5,000Cost of goods manufactured9,000Factory overhead7,000Calculate the amount of direct materials used.ANSWER:Direct materials used = ($25,000 – $18,000 + $9,000) – ($7,000 + $5,000) =$4,000DIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticLaramie Technologies had the following data:Cost of materials used$50,000Direct labor costs56,000Factory overhead28,000Work in process, beg.45,000Work in process, end.32,000Calculate the cost of goods manufactured.ANSWER:Cost of goods manufactured = $50,000 + $56,000 + $28,000 + ($45,000 –$32,000) = $147,000DIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticKeeton Company had the following data:Cost of materials used$60,000Direct labor costs58,000Factory overhead33,000Work in process, beg.29,000Work in process, end.18,000Finished goods, beg.32,000Finished goods, end.18,000Calculate the cost of goods sold.ANSWER:Cost of goods sold = $60,000 + $58,000 + $33,000 + ($29,000 – $18,000) +($32,000 – $18,000) = $176,000DIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticZoe Corporation has the following information for the month of March:Purchases$ 92,000Materials inventory, March 16,000Materials inventory, March 318,000Direct labor25,000Factory overhead37,000Work in process, March 122,000Work in process, March 3123,500Finished goods inventory, March 121,000Finished goods inventory, March 3130,000Sales257,000Sales and administrative expenses79,000Prepare (a) a schedule of cost of goods manufactured, (b) an income statement for the month ended March 31, and(c) the inventory section of the balance sheet.ANSWER:(a)Zoe CorporationStatement of Cost of Goods ManufacturedFor Month Ended March 31Beginning work in process inventory, March 1???$? 22,000Direct materials:?????? Beginning materials inventory$ ?6,000????? Purchases?92,000???? Cost of materials for use$98,000????? Less materials inventory? ?8,000????????? Cost of materials used?$90,000?Direct labor?25,000?Factory overhead??37,000?Total manufacturing costs incurred??? 152,000Total manufacturing costs??$174,000Less ending work in process inventory???? 23,500Cost of goods manufactured??$150,500(b)Zoe CorporationIncome StatementFor Month Ended March 31???Sales?$257,000Beginning finished goods inventory$? 21,000?Plus cost of goods manufactured? 150,500?Cost of finished goods available for sale$171,500?Less ending finished goods inventory? ?30,000?Cost of goods sold?141,500Gross profit?$115,500Operating expenses:??????Sales and administrative expenses?79,000Net income?$ 36,500(c)Inventories:?? ?Finished goods$30,000??? Work in process23,500??? Materials? ? 8,000?Total inventories$61,500?DIFFICULTY:ChallengingBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporationfor the current year.Sales$1,980Selling expenses280Manufacturing overhead460Direct labor400Administrative expenses300Purchases of direct materials240Finished goods inventory, beginning240Finished goods inventory, ending320Direct materials inventory, beginning80Direct materials inventory, ending140Work in process inventory, beginning140Work in process inventory, ending100Required: (Present all calculations in thousands of dollars.)What was the cost of the direct materials used in production during the year?What was the cost of goods manufactured for the year?What was the cost of goods sold for the year?What was the net income for the year?Present all calculations in thousands of dollars.ANSWER:The cost of the direct materials used in production during the year isdetermined as follows:Direct materials inventory, beginning$ 80Purchases of direct materials240Less direct materials inventory, ending140Direct materials used in production$180The cost of goods manufactured (finished) during the year is determined asfollows:Raw materials used in production$ 180Direct labor400Manufacturing overhead460Total manufacturing costs$1,040Less: Work in process inventory, beginning 140$1,180Less: Work in process inventory, ending100Cost of goods manufactured$1,080The cost of goods sold for the year is determined as follows:Finished goods inventory, beginning$ 240Cost of goods manufactured1,080Less: Finished goods inventory, ending320Cost of goods sold$1,000(d) Net income for the year is determined as follows:Sales$1,980Cost of goods sold 1,000Gross profit$ 980Operating expenses:Administrative expenses$300Selling expenses 280580Net income$ 400DIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticAllen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during the currentyear. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costspertaining to the factory included utilities of $3,100, maintenance of $4,500, supplies of $1,800, depreciation of$7,900, and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work inprocess inventory began the year with a $5,500 balance and ended the year with a $7,500 balance.Prepare a statement of cost of goods manufactured.ANSWER:?Allen Company????Statement of Cost of Goods Manufactured??????For the Year Ended December 31Beginning work in process inventory??$?? 5,500Direct materials?$71,000?Direct labor???37,000?Factory overhead:??????? Indirect labor$2,700?????? Indirect materials??1,600?????? Utilities??3,100?????? Maintenance??4,500?????? Supplies??1,800?????? Depreciation??7,900?????? Property taxes2,600??24,200?Total manufacturing costs incurred??? 132,200Total manufacturing costs??$137,700Less ending work in process inventory??????? 7,500Cost of goods manufactured??$130,200DIFFICULTY:ModerateBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticDavis Manufacturing Company had the following data:January 1December 31Accounts receivable$27,000$33,000Materials inventory22,5006,000Work in process inventory70,20048,000Finished goods inventory3,00015,000Collections on account were $625,000.Cost of goods sold was 68% of sales.Direct materials purchased amounted to $90,000.Factory overhead was 300% of the cost of direct pute:Sales revenue (all sales were on account)Cost of goods soldCost of goods manufacturedDirect labor usedDirect materials incurredFactory overhead incurredANSWER:a) Sales revenue = $33,000 + $625,000 – $27,000 = $631,000b) Cost of goods sold = $631,000 × 0.68 = $429,080c) Cost of goods manufactured = $15,000 + $429,080 – $3,000 = $441,080d) Direct labor incurred = $441,080 + $48,000 – $70,200 = $418,880 totalmanufacturing costs added$418,880 – $106,500 = $312,380$312,380 = Factory overhead + Direct laborLet X = direct labor3X + X = $312,3804X = $312,380Direct labor = $78,095e) Direct materials used = $22,500 + $90,000 – $6,000 = $106,500f) Factory overhead incurred = $78,095 × 3 = $234,285DIFFICULTY:ChallengingBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticTaylor Industries had a fire and some of its accounting records were destroyed. Available information is presentedbelow for the year ended December 31.Materials inventory, December 31$ 15,000Direct materials purchased28,000Direct materials used22,900Cost of goods manufactured135,000Additional information:Factory overhead is 150% of direct labor costFinished goods inventory decreased by $18,000 during the yearWork in process inventory increased by $12,000 during the yearCalculate:Materials inventory, January 1Direct labor costFactory overhead incurredCost of goods soldANSWER:a) Materials inventory, January 1 = $15,000 + $22,900 – $28,000 = $9,900b) Direct labor cost = $135,000 + $12,000 = $147,000 total manufacturing costs$147,000 – $22,900 = $124,100 direct labor and factory overheadLet X = direct labor costX + 1.5X = $124,1002.5X = $124,100Direct labor = $49,640c) Factory overhead incurred = $49,640 × 1.5 = $74,460d) Cost of goods sold = $135,000 + $18,000 = $153,000DIFFICULTY:ChallengingBloom’s: ApplyingLEARNING OBJECTIVES:ACCT.WARD.16.18-03 - 18-03ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticMatch the items below for a bakery to the type of cost (a-d).Direct materialsDirect laborFactory overheadNon-manufacturing costDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticSalesman commissionsANSWER: dFactory rentANSWER: cDepreciation expense—factoryANSWER: cFrostingANSWER: aBaker’s wagesANSWER: bDepreciation expense—officeANSWER: dCupcake mixANSWER: aSprinkles for decoration (indirect material)ANSWER: cThe following are some of the costs incurred by Cupcake Company. Identify them as either:Prime costsConversion costsBoth prime and conversion costsNeither prime or conversion costsDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticSalesman commissionsANSWER: dFactory rentANSWER: bDepreciation expense—factoryANSWER: bFrostingANSWER: aBaker’s wagesANSWER: cDepreciation expense—officeANSWER: dCupcake mixANSWER: aSprinkles for decoration (indirect material)ANSWER: bBartel Corporation produces bar stools for restaurants. For each of the following, indicate whether thecost would typically be considered direct or indirect cost for the cost object given.DirectIndirectDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticThe production labor wages for the bar stool assemblersANSWER: aThe factory supervisor’s salary for the bar stool factoryANSWER: bLubricants used on the bar stool manufacturing equipmentANSWER: bManufacturing costs for wood and steel used in the bar stoolsANSWER: aNails and screws used in the production of the bar stoolsANSWER: aFor each of the following, indicate whether the cost would typically be considered product or period cost for thecost object given.ProductPeriodDIFFICULTY:EasyBloom’s: RememberingLEARNING OBJECTIVES:ACCT.WARD.16.18-02 - 18-02ACCREDITING STANDARDS:ACCT.ACBSP.APC.27 - Managerial Accounting Features/CostsACCT.IMA.07 - Cost ManagementBUSPROG: AnalyticTires for the bicyclesANSWER: aElectricity costs to run the factoryANSWER: aSelling costs for the periodANSWER: bDelivery costs to take the bicycles to storesANSWER: bAccountant salariesANSWER: b ................
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