MGMT 2001- Managerial Accounting and Concepts Qualifications

Managerial Accounting and Concepts Qualifications?

1.Which of the following costs would be considered a period rather than a product cost in a manufacturing company:

a.Direct materials cost

b.Property tax on the corporate headquarters

c.Electric cost to light the factory

d.Depreciation expense on manufacturing equipment

2. Which of the following is a characteristic of managerial accounting?

a.Reports primarily on activities occurring prior to the current period

b.Focuses on the needs of investors.

c.No mandatory reporting rules

d.Is developed using only accounting information

3. Which of the following is a cost driver?

a. Deciding to conduct business in Brazil

b. Granting permission to customer service personnel to give away free product up to $25 to resolve customer complaints

c. Expanding available retail sales space by 500 square feet

d. All of the above

4. Identify the three cost categories in manufacturing:

a. Direct materials, direct labor, and manufacturing overhead

b. Direct materials, direct labor, and structural costs

c. Indirect materials, indirect labor, and period costs

d. All period costs, structural costs and selling expense

5. A graphical representation of what type of cost has zero cost with zero units?

a. Mixed cost

b. Variable cost

c. Fixed cost

d. Step cost

6. A process production manufacturer has beginning inventory of 10,000 units, 30% complete, and ending inventory of 8,000 units, 40% complete. There were 22,000 units started during the period. Determine the number of equivalent units of conversion in process.

a. 27,200

b. 20,800

c. 18,200

d. 25,000

7. Which of the following documents is used to accumulate all of the manufacturing costs assigned to a job:

a. Labor time report

b. Purchase order

c. Bill of materials

d. Job costing sheet

8. Custom Jeans Works is establishing its predetermined overhead rate for 2018. The measure of activity is the number of machine hours that the cutting machines operate which is estimated to be 16,250 for 2018. Based on the following, what rate should Custom Jeans Works utilize for its predetermined overhead rate in 2018?

Estimated Annual Expenses for 2018

Indirect materials $ 230,450

Indirect labor 398,000

Factory utilities 50,000

Sales commissions 125,000

Factory rent 74,000

Factory maintenance 16,000

Total $ 893,450

a. $39/machine hour

b. $47/machine hour

c. $63/direct labor hour

d. $63/machine hour

9. If an accounting department needs to hire one additional accountant for each increase in revenue of $3,000,000, this represents what time of cost to the company?

a. Mixed cost

b. Variable cost

c. Fixed cost

d. Step cost

10. Which of the following statements best represents job order costing?

a. Job order costing works best when there is production of identical units on a continuous basis

b. Job order costing works best for companies like Kraft Heinz and SanDisk

c. In job order costing, scheduling personnel preparing a production report for each job

d. In job order costing, a process cost sheet is used to accumulate the costs for each job