Mdtrm1Spr09Bus21Buck.pdf

Mdtrm1Spr09Bus21Buck.pdf - 14. Chezpere Company...

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14. Chezpere Company manufactures and sells washing machines. In order to make assembly of the machines faster and easier, some of the metal parts in the machines are coated with grease. How should the cost of this grease be classified? Direct Materia! Cost Fixed Cost A. Yes . Yes B. Yes No C. No Yes D. No No' 15. Materials used in the operation of a factory, such as cleaning supplies, that are not an integral part of the final product should be classified as: A. direct materials. B. a period cost. C. administrative expense. D. manufacturing overhead. 16. The one cost that would be classified as part of both prime cost and conversion cost would be: A. indirect material. B. direct labor. C. direct material. D. indirect labor. 17. Direct costs: A.. are incurred to benefit a particular accounting period. -). are incurred due to a specific decision. C. can be easily traced to a particular cost object. D. are the variable costs of producing a product. 18. Whieh of the following is NOT a period cost? A. Monthly depreciation of the equipment in a fitness room used by factory workers. B. Salary of a billing clerk. C. Insurance on a company showtoom, where current and potential customers can view new products. D. Cost of a seminar concerning tax law updates that was attended by the company's controller. 19. The annual insurance premium for the factory building would be a: A. fixed cost, period cost, and indirect cost with regard to units of product. B. fixed cost, product cost, and direct cost with regard to units of product. C. variable cost, product cost, direct cost with regard to units of product. 6)mea cost, product cost, indirect cost with regard to units of product. 20. Factory supplies in a manufacturing plant are most likely: A. sunk costs. B. period costs. C. variable costs. D. excluded from product costs.
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8. For a manufacturing company, what type of position (line or staff) is each of the following? Manager of a Data Manager of a Production Processing Departrnent Department -,{. Staff Staff B. " Staff Lrne C. Line Staff D. Line Lne 9.A position in an organization is directly related to the achievement of the organization's basic objectives. ;!,r line B. management C. staff D. none of these. 10. One consequence of a change from a push to a properly implemented pull production system can be: A. an increase in work in process inventories. B. an extremely difficult cultural change due to enforced idleness when demand falls below production capacity. C. an increased mismatch between what is produced and what is demanded by customers. D. an increase in raw materials inventories. 11. The Institute of Management Accountants' Standards of Ethical Conduct contains a policy regarding 'onfidentiality that requires that management accountants: -A. refrain from disclosing confidential information acquired in the course of their work exceot when authorized
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Mdtrm1Spr09Bus21Buck.pdf - 14. Chezpere Company...

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