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Week 2 Quiz 1:
Chapter 1
TRUE-FALSE STATEMENTS
1. Reports prepared in financial accounting are general-purpose
reports, whereas reports prepared in managerial accounting are usually special-purpose
reports.
Ans:, LO: 1, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: Communication, IMA: Reporting
2. Managerial accounting information generally pertains to an
entity as a whole and is highly aggregated.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: Communication, IMA: Reporting
3. Managerial accounting applies to all forms of business
organizations.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: Communication, IMA: Reporting
4. Determining the unit cost of manufacturing a product is an
output of financial accounting.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Measurement, AICPA PC: Problem Solving, IMA: FSA
5. Managerial accounting internal reports are prepared more
frequently than are classified financial statements.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: Communication, IMA: Reporting
6. The management function of organizing and directing is mainly
concerned with setting goals and objectives for the entity.
Ans:, LO: 2, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Decision Modeling, AICPA PC: Leadership, IMA: Decision Analysis
7. The Sarbanes-Oxley Act replaces generally accepted accounting
principles in a manufacturing company.
Ans:, LO: 2, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: Ethics, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
8. Controlling is the process of determining whether planned goals
are being met.
Ans:, LO: 2, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Decision Modeling, AICPA PC: Leadership, IMA: Internal Controls
9. Decision-making is an integral part of the planning, directing,
and controlling functions.
Ans:, LO: 2, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic/Critical Thinking,
AICPA FN: Decision Modeling, AICPA PC: Leadership, IMA: Decision Analysis
10. Direct materials costs and indirect materials costs are manufacturing
overhead.
Ans:, LO: 3, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Measurement, AICPA PC: Problem Solving, IMA: Cost Management
11. Manufacturing costs that cannot be classified as direct
materials or direct labor are classified as manufacturing overhead.
Ans:, LO: 3, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Measurement, AICPA PC: Problem Solving, IMA: Cost Management
12. Raw materials are equal to direct materials minus indirect
materials.
Ans:, LO: 3, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Measurement, AICPA PC: Problem Solving, IMA: Cost Management
13. Raw materials that can be conveniently and directly associated
with a finished product are called materials overhead.
Ans:, LO: 3, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Measurement, AICPA PC: Problem Solving, IMA: Cost Management
14. The total cost of a finished product does not generally contain
equal amounts of materials, labor, and overhead costs.
Ans:, LO: 3, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Measurement, AICPA PC: Problem Solving, IMA: Cost Management
15. Both direct labor cost and indirect labor cost are product
costs.
Ans:, LO: 4, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Measurement, AICPA PC: Problem Solving, IMA: Cost Management
16. Period costs include selling and administrative expenses.
Ans:, LO: 4, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Measurement, AICPA PC: Problem Solving, IMA: Cost Management
17. Indirect materials and indirect labor are both inventoriable
costs.
Ans:, LO: 4, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Measurement, AICPA PC: Problem Solving, IMA: Cost Management
18. Direct materials and direct labor are the only product costs.
Ans:, LO: 4, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Measurement, AICPA PC: Problem Solving, IMA: Cost Management
19. Total period costs are deducted from total cost of work in
process to calculate cost of goods manufactured.
Ans:, LO: 4, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Measurement, AICPA PC: Problem Solving, IMA: Cost Management
20. Period costs are not inventoriable costs.
Ans:, LO: 4, Bloom: K, Difficulty:
Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN: Reporting,
AICPA PC: None, IMA: Reporting
21. Ending finished goods inventory appears on both the balance
sheet and the income statement of a manufacturing company.
Ans:, LO: 5, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
22. The beginning work in process inventory appears on both the
balance sheet and the cost of goods manufactured schedule of a manufacturing
company.
Ans:, LO: 5, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
23. In calculating gross profit for a manufacturing company, the
cost of goods manufactured is deducted from net sales.
Ans:, LO: 5, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
24. Finished goods inventory does not appear on a cost of goods
manufactured schedule.
Ans:, LO: 6, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
25. If the ending work in process inventory is greater than the
beginning work in process inventory, then the cost of goods manufactured will
be less than total manufacturing costs for the period.
Ans:, LO: 6, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Measurement, AICPA PC: Problem Solving, IMA: Cost Management
26. Finished goods inventory for a manufacturing company is
equivalent to merchandise inventory for a merchandising company.
Ans:, LO: 7, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
27. Raw materials inventory shows the cost of completed goods
available for sale to customers.
Ans:, LO: 7, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
28. The balanced scorecard approach attempts to maintain as little
inventory on hand as possible.
Ans:, LO: 8, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Risk Analysis, AICPA PC: Problem Solving, IMA: Performance Measurement
29. The supply chain is all the activities associated with providing
a product or service.
Ans:, LO: 8, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Measurement, AICPA PC: None, IMA: Global Business
30. Many
companies have significantly lowered inventory levels and costs using
just-in-time inventory methods.
Ans:, LO: 8, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Risk Analysis, AICPA PC: None, IMA: Cost Management
31. Managerial
accounting is primarily concerned with managers and external users.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Decision Modeling, AICPA PC: None, IMA: Business Economics
32. Planning
involves coordinating the diverse activities and human resources of a company
to produce a smooth running operation.
Ans:, LO: 2, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Decision Modeling, AICPA PC: None, IMA: Business Economics
33. When
the physical association of raw materials with the finished product is too
small to trace in terms of cost, they are usually classified as indirect
materials.
Ans:, LO: 3, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Measurement, AICPA PC: None, IMA: Cost Management
34. Product
costs are also called inventoriable costs.
Ans:, LO: 4, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Measurement, AICPA PC: None, IMA: Cost Management
35. Direct
materials become a cost of the finished goods manufactured when they are
acquired, not when they are used.
Ans:, LO: 5, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Measurement, AICPA PC: None, IMA: Cost Management
36. The
sum of the direct materials costs, direct labor costs, and beginning work in
process is the total manufacturing costs for the year.
Ans:, LO: 6, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
37. In
a manufacturing company balance sheet, manufacturing inventories are reported
in the current assets section in the order of their expected use in production.
Ans:, LO: 7, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
MULTIPLE
CHOICE QUESTIONS
38. Managerial
accounting applies to each of the following types of businesses except
a. service firms.
b. merchandising firms.
c. manufacturing firms.
d. Managerial accounting applies to all types of
firms.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
39. Managerial accounting information is
generally prepared for
a. stockholders.
b. creditors.
c. managers.
d. regulatory agencies.
Ans:, LO: 1, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
40. Managerial accounting information
a. pertains to the entity as a whole and is
highly aggregated.
b. pertains to subunits of the entity and may be
very detailed.
c. is prepared only once a year.
d. is constrained by the requirements of
generally accepted accounting principles.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
41. The major reporting standard for presenting
managerial accounting information is
a. relevance.
b. generally accepted accounting principles.
c. the cost principle.
d. the current tax law.
Ans:, LO: 1, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
42. Managerial accounting is also called
a. management accounting.
b. controlling.
c. analytical accounting.
d. inside reporting.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
43. Which of the following is not an internal
user?
a. Creditor
b. Department manager
c. Controller
d. Treasurer
Ans:, LO: 1, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: Professional Demeanor, IMA: Business Economics
44. Managerial accounting does not encompass
a. calculating product cost.
b. calculating earnings per share.
c. determining cost behavior.
d. profit planning.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: Professional Demeanor, IMA: Business Economics
45. Managerial accounting is applicable to
a. service entities.
b. manufacturing entities.
c. not-for-profit entities.
d. all of these.
Ans:, LO: 1, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: Professional Demeanor, IMA: Business Economics
46. Management accountants would not
a. assist in budget planning.
b. prepare reports primarily for external users.
c. determine cost behavior.
d. be concerned with the impact of cost and
volume on profits.
Ans:, LO: 1, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
47. Internal reports must be communicated
a. daily.
b. monthly.
c. annually.
d. as needed.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
48. Financial statements for external users can
be described as
a. user-specific.
b. general-purpose.
c. special-purpose.
d. managerial reports.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
49. Managerial accounting reports can be
described as
a. general-purpose.
b. macro-reports.
c. special-purpose.
d. classified financial statements.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
50. The reporting standard for external
financial reports is
a. industry-specific.
b. company-specific.
c. generally accepted accounting principles.
d. department-specific.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
51. Which of the following statements about
internal reports is not true?
a. The content of internal reports may extend
beyond the double-entry accounting system.
b. Internal reports may show all amounts at
market values.
c. Internal reports may discuss prospective
events.
d. Most internal reports are summarized rather
than detailed.
Ans:, LO: 1, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
52. In an analogous sense, external user is to
internal user as generally accepted accounting principles are to
a. timely.
b. special-purpose.
c. relevance to decision.
d. SEC.
Ans:, LO: 1, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: Professional Demeanor, IMA: Reporting
53. Internal reports are generally
a. aggregated.
b. detailed.
c. regulated.
d. unreliable.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
54. A
distinguishing feature of managerial accounting is
a. external users.
b. general-purpose reports.
c. very detailed reports.
d. quarterly and annual reports.
Ans:, LO: 1, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
55. What activities and responsibilities
are not associated with management's functions?
a. Planning
b. Accountability
c. Controlling
d. Directing
Ans:, LO: 2, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Reporting, AICPA PC: Professional Demeanor, IMA: Reporting
56. Planning is a function that involves
a. hiring the right people for a particular job.
b. coordinating the accounting information
system.
c. setting goals and objectives for an entity.
d. analyzing financial statements.
Ans:, LO: 2, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Decision Modeling, AICPA PC: Professional Demeanor, IMA: Decision Analysis
57. The managerial function of controlling
a. is performed only by the controller of a
company.
b. is only applicable when the company sustains
a loss.
c. is concerned mainly with operating a
manufacturing segment.
d. includes performance evaluation by
management.
Ans:, LO: 2, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Decision Modeling, AICPA PC: Professional Demeanor, IMA: Decision Analysis
58. Which of the following is not a
management function?
a. Constraining
b. Planning
c. Controlling
d. Directing
Ans:, LO: 2, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Decision Modeling, AICPA PC: Professional Demeanor, IMA: Decision Analysis
59. A manager that is establishing objectives
is performing which management function?
a. Controlling
b. Directing
c. Planning
d. Constraining
Ans:, LO: 2, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Decision Modeling, AICPA PC: Problem Solving, IMA: Decision Analysis
60. The management function that requires
managers to look ahead and establish objectives is
a. controlling.
b. directing.
c. planning.
d. constraining.
Ans:, LO: 2, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Decision Modeling, AICPA PC: None, IMA: Decision Analysis
61. In determining whether planned goals are
being met, a manager is performing the function of
a. planning.
b. follow-up.
c. directing.
d. controlling.
Ans:, LO: 2, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Decision Modeling, AICPA PC: None, IMA: Decision Analysis
62. Which of the following is not a separate
management function?
a. Planning
b. Directing
c. Decision-making
d. Controlling
Ans:, LO: 2, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Decision Modeling, AICPA PC: None, IMA: Decision Analysis
63. Directing includes
a. providing a framework for management to have
criteria to terminate employees when needed.
b. running a department under quality control
standards universally accepted.
c. coordinating a company's diverse activities
and human resources to produce a smooth-running operation.
d. developing a complex performance ranking
system to give certain high performers good raises.
Ans:, LO: 2, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Decision Modeling, AICPA PC: None, IMA: Decision Analysis
64. Both direct materials and indirect
materials are
a. raw materials.
b. manufacturing overhead.
c. merchandise inventory.
d. sold directly to customers by a manufacturing
company.
Ans:, LO: 3, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Measurement, AICPA PC: None, IMA: FSA
65. The work of factory employees that can be
physically and directly associated with converting raw materials into finished
goods is
a. manufacturing overhead.
b. indirect materials.
c. indirect labor.
d. direct labor.
Ans:, LO: 3, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Measurement, AICPA PC: None, IMA: FSA
66. Which one of the following would not
be classified as manufacturing overhead?
a. Indirect labor
b. Direct materials
c. Insurance on factory building
d. Indirect materials
Ans:, LO: 3, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
67. Manufacturing costs include
a. direct materials and direct labor only.
b. direct materials and manufacturing overhead
only.
c. direct labor and manufacturing overhead only.
d. direct materials, direct labor, and
manufacturing overhead.
Ans:, LO: 3, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
68. Which
one of the following is not a direct material?
a. A tire used for a lawn mower
b. Plastic used in the covered case for a home
PC
c. Steel used in the manufacturing of
steel-radial tires
d. Lubricant for a ball-bearing joint for a large
crane
Ans:, LO: 3, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Measurement, AICPA PC: None, IMA: FSA
69. Which one of the following is not a
cost element in manufacturing a product?
a. Manufacturing overhead
b. Direct materials
c. Office salaries
d. Direct labor
Ans:, LO: 3, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Measurement, AICPA PC: None, IMA: FSA
70. A manufacturing process requires small
amounts of glue. The glue used in the production process is classified as a(n)
a. period cost.
b. indirect material.
c. direct material.
d. miscellaneous expense.
Ans:, LO: 3, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Measurement, AICPA PC: None, IMA: FSA
71. The wages of a timekeeper in the factory
would be classified as
a. a period cost.
b. direct labor.
c. indirect labor.
d. compliance costs.
Ans:, LO: 3, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
72. Which one of the following is not
considered as material costs?
a. Partially completed motor engines for a
motorcycle plant
b. Bolts used in manufacturing the compressor of
an engine
c. Rivets for the wings of a new commercial jet
aircraft
d. Lumber used to build tables
Ans:, LO: 3, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Measurement, AICPA PC: None, IMA: FSA
73. Which of the following is not a
manufacturing cost category?
a. Cost of goods sold
b. Direct materials
c. Direct labor
d. Manufacturing overhead
Ans:, LO: 3, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
74. As current technology changes manufacturing processes, it is
likely that direct
a. labor will increase.
b. labor will decrease.
c. materials will increase.
d. materials will decrease.
Ans:, LO: 3, Bloom: C,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector, AICPA FN:
Decision Modeling, AICPA PC: Project Management, IMA: Business Economics
75. For the work of factory employees to be
considered as direct labor, the work must be conveniently and
a. materially associated with raw materials
conversion.
b. periodically associated with raw materials
conversion.
c. physically associated with raw materials
conversion.
d. promptly associated with raw materials
conversion.
Ans:, LO: 3, Bloom: K,
Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory, AICPA FN:
Reporting, AICPA PC: None, IMA: Reporting
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