ACCT 2082 - Chapter 1 & 2 Practice PDF

Preview

Summary

ACCT 2082 - Chapter 1 & 2 Practice...

Description

1 1.) An example of a period cost is Answer: advertising expense 2.) Costs that are treated as assets until the product is sold are Answer: product costs 3.) Which of the following represents the factory overhead applied to a product? Answer: predetermined factory overhead rate times actual activity base 4.) Recording jobs shipped and customers billed would include a debit to Answer: Cost of Goods Sold 5.) Which of the following is not a reason a service firm would use a job order costing system? Answer: to determine department costs within the firm 6.) Period costs are classified as either Answer: selling expenses or administrative expenses 7.) The document authorizing the issuance of materials from the storeroom is a Answer: materials requisition 8.) For which of the following businesses would the job order cost system be appropriate? Answer: Hospital 9.) The recording of the application of factory overhead costs to jobs would include a credit to Answer: Factory Overhead 10.) The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had total production costs of $375,000. The entry to record the transfer of costs from work in process to finished goods is Answer: Finished Goods 540,000 Work in Process 540,000 11.) In a job order cost accounting system, the entry to record the flow of direct materials into production is to Answer: Debit Work in Process, credit Materials 12.) All of the following would be reported on the balance sheet as a current asset except Answer: Factory Overhead 13.) Which of the following statements is false? Answer: There is no overlap between financial and managerial accounting 14.) Which of the following are reported on the income statement as part of cost of goods? Answer: Cost of Goods Manufactured 15.) Which of the following is an example of direct materials cost for an automobile manufacturer?

1

2

Answer: Cost of Interior Upholstery 16.) All of the following are examples of indirect labor except Answer: Machine Operators 17.) What term is used to describe the process of developing the organization's objectives and translating those into courses of action? Answer: Planning 18.) Prime Costs are Answer: direct materials and direct labor 19.) What term is used to describe the process of monitoring operating results and comparing actual results with the expected results? Answer: Controlling 20.) Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as Answer: Factory Overhead Cost 21.) Goods that are partially completed by a manufacturer are Answer: Work in Process Inventory 22.) Insurance expense incurred on a factory building would be treated as a Answer: Product Cost 23.) Conversion costs are Answer: factory overhead and direct labor 24.) Which of the following is not a factory overhead cost? Answer: materials used directly in the manufacturing process of the product 25.) What term is used to describe the process of monitoring operating results and comparing actual results with the expected results? Answer: controlling 26.) Which of the following is an example of direct labor cost for a cell phone manufacturer? Answer: cost of wages of assembly worker 27.) If the cost of a direct material is a small portion of total production cost, it may be classified as part of Answer: factory overhead cost 28.) Which of the following is the principle reason for preparing managerial accounting reports? Answer: usefulness to management 29.) What is the primary criterion for the preparation of managerial accounting reports?...