EXAM1 - 1....

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1. Which of the following is NOT an objective of Management Accounting? a. To provide information for costing of services, products, and other objects of interest  to management. b. To provide information for planning, controlling, evaluating and continuous  improvement. c. To provide information for decision making d. To prepare external reports for investors, creditors, government agencies, and other  outside users. 2. All of the following are characteristics of a pull production system EXCEPT: a. Inventories are reduced to a minimum by purchasing materials and producing units       only as needed to need consumer demand. b. Materials are released to production far in advance of being needed to ensure no  interruptions in work flows due to shortages of 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. 3. Which 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 an accounting clerk. c. Insurance on a company showroom, 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  CFO. 4. Smithfield Company’s Trial Balance included the following accounts: Net Operating Income……………………………………………………. $10,000 Ending Finished Goods Inventory…………………………………. . $5,000 Sales………………………………………………………………………………. $40,000 Cost of Goods Manufactured…………………………………………. $16,000 Gross Profit……………………………………………………………………. $17,000       What is the Beginning Finished Goods Inventory Cost? a. $24,000 b. $23,000 c. $7,000 d. $12,000 5. At a sales volume of 20,000 units, total costs are $55,000.  The company’s variable cost  per unit is $1.50.  What should be the total fixed cost at a sales volume of 30,000 units,  assuming that it is within the relevant range?
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a. $25,000 b. $30,000 c. $45,000 d. Cannot Be Determined. 6. During the last week in January, Richard worked a total of 45 hours and had no idle time.  Richard is paid $10 per hour for regular time, and is paid time and a half for all hours in  excess of 35 hours per week.  Given this information: a. $350 should be charged to Direct Labor b. $50 should be charged to Overhead c. $150 should be charged to Overhead d. $500 should be charged to Direct Labor Use the following information to answer the next four questions regarding quality costs:
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This note was uploaded on 12/10/2011 for the course ACCT 208 taught by Professor Kingery during the Winter '08 term at University of Delaware.

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EXAM1 - 1....

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