Accounting Final

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  1. Alex Company spent $2,500 cash to build 10
    desks: $940 for materials, $1,270 for a carpenter's labor, and $290 for tools
    used to make the desks. None of the desks have been sold. What amount should
    Alex Company expense for the desks?
  2. In what account are the costs of building a
    chair accumulated until the chair is sold
    Finished Goods Inventory
  3. Which of the following is are product costs
    • Direct Materials
    • Direct Labor
    • Manufacturing Overhead
  4. Overhead is
    those costs required to run a business, but which cannot be directly attributed to any specific business activity, product, or service.
  5. All of the following are features of managerial accounting except:
    Information is historically based and usually reported annually
  6. managerial accounting information is
    aimed at helping managers within the organization make decisions.
  7. financial accounting is aimed at
    providing information to parties outside the organization.
  8. All of the following are features of managerial accounting
    • -Information includes economic and non-financial data as well as financial data.
    • -Information is provided primarily to insiders such as managers.
    • -Information is reported continuously with a present or future orientation.
  9. Product costs include all of the following
    • A)   direct material costs.
    • B)   direct labor costs. 
    • D)   overhead costs.
  10. Product costs include all of the following except
    research and development costs.
  11. Which of the following costs is not considered to be a product cost?
    Depreciation of delivery vehicles
  12. Which of the following should be recorded as an asset?
    Paid for raw materials to be used in production
  13. Which of the following should not be recorded as an expense?
    Paid factory maintenance costs
  14. Select the correct equation for product costs.
    Product Costs = Cost of finished goods inventory + Cost of goods sold
  15. Which of the following transactions would cause net income for the period to be lower?
    Paid administrative salaries of $2,500
  16. Manufacturing costs that cannot be traced to specific units of product in a cost-effective manner are
    • manufacturing overhead costs
    • indirect costs.
  17. Which of the following types of labor costs will not initially flow through the balance sheet?
    Salaries for sales staff
  18. Which of the following is not classified as manufacturing overhead?
    Product delivery costs
  19. The managerial accounting system includes
    economic and non-financial data as well as financial statement data.
  20. Operating workers (lower-level employees) need more
    nonfinancial data than financial data to do their jobs.
  21. Senior executives focus on -------------- when comparing the performance of their companies to that of competitors.
    financial data
  22. Financial accounting focuses primarily on
    the performance of the company as a whole
  23. Incurring product costs is
    an asset exchange transaction.
  24. The primary challenge in computing the total cost per unit of product is
    determining the amount of overhead cost that should be assigned to each unit
  25. Product costs are initially recorded in ------------ and are later -------------------------------
    • -asset accounts
    • -expensed in the period when the related units are sold
  26. A company that incurred $1,000 in production costs reported cost of goods sold of $800 and selling costs of $100. Based on this information only, its ending finished goods inventory was
  27. Costs that are not classified as product costs are normally
    expensed in the period incurred
  28. Depreciation on manufacturing equipment is an
    indirect product cost, while depreciation on office equipment is a period cost.
  29. Product costs flow from the --- to ------
    balance sheet to the income statement
  30. Unlike direct material and direct labor costs, overhead costs must be
    allocated to products
  31. Larry's Lawn Care incurs significant gasoline costs. This cost would be classified as a variable cost if the total gasoline cost:
    varies inversely with the number of hours the lawn equipment is operated
Card Set:
Accounting Final
2014-12-13 20:22:21
Accounting Final
Accounting Final
Accounting Final
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