TEST 1 MANGERIAL ACCOUNTING

TEST 1 MANGERIAL ACCOUNTING - Test 1 Managerial Accounting...

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Test 1 Managerial Accounting 03/09/09 1. All of the following are characteristics of a pull production system EXCEPT: A) Inventories are reduced to a minimum by purchasing raw materials and producing units only as needed to meet consumer demand. B) Raw materials are released to production far in advance of being needed to ensure no interruptions in work flows due to shortages of raw materials. C) Products are completed just in time to be shipped to customers. D) Manufactured parts are completed just in time to be assembled into products. Answer: B AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Decision Making LO: 3 Level: Medium 2. The phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making is called: A) throughput time. B) managerial accounting. C) financial accounting. D) controlling. Answer: B AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Measurement LO: 1 Level: Easy 3. The cost of the cushions that are used to manufacture sofas is best described as a: A) manufacturing overhead cost. B) period cost. C) variable cost. D) conversion cost. Ans: C AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1,2,5 Level: Medium 4. 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 Material Cost Fixed Cost A) Yes Yes B) Yes No C) No Yes D) No No
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Ans: D AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1,5,6 Level: Hard 5. A security guard's wages at a factory would be an example of: Indirect labor Fixed manufacturing overhead A) No No B) Yes Yes C) Yes No D) No Yes Ans: B AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1,5 Level: Medium Source: CPA, adapted 6. Manufacturing overhead includes: A) all direct material, direct labor and administrative costs. B) all manufacturing costs except direct labor. C) all manufacturing costs except direct labor and direct materials. D) all selling and administrative costs. Ans: C AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1 Level: Easy 7. 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. Ans: D AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1 Level: Easy 8. The one cost that would be classified as part of both prime cost and conversion cost would be: A) indirect material.
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This note was uploaded on 07/01/2011 for the course ACCT 52548 taught by Professor Charleslewis during the Spring '10 term at HCCS.

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TEST 1 MANGERIAL ACCOUNTING - Test 1 Managerial Accounting...

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