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?
In what account are the costs of building a
chair accumulated until the chair is sold
Finished Goods Inventory
Which of the following is are product costs
those costs required to run a business, but which cannot be directly attributed to any specific business activity, product, or service.
All of the following are features of managerial accounting except:
Information is historically based and usually reported annually
managerial accounting information is
aimed at helping managers within the organization make decisions.
financial accounting is aimed at
providing information to parties outside the organization.
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.
Product costs include all of the following
A) direct material costs.
B) direct labor costs.
D) overhead costs.
Product costs include all of the following except
research and development costs.
Which of the following costs is not considered to be a product cost?
Depreciation of delivery vehicles
Which of the following should be recorded as an asset?
Paid for raw materials to be used in production
Which of the following should not be recorded as an expense?
Paid factory maintenance costs
Select the correct equation for product costs.
Product Costs = Cost of finished goods inventory + Cost of goods sold
Which of the following transactions would cause net income for the period to be lower?
Paid administrative salaries of $2,500
Manufacturing costs that cannot be traced to specific units of product in a cost-effective manner are
manufacturing overhead costs
Which of the following types of labor costs will not initially flow through the balance sheet?
Salaries for sales staff
Which of the following is not classified as manufacturing overhead?
Product delivery costs
The managerial accounting system includes
economic and non-financial data as well as financial statement data.
Operating workers (lower-level employees) need more
nonfinancial data than financial data to do their jobs.
Senior executives focus on -------------- when comparing the performance of their companies to that of competitors.
Financial accounting focuses primarily on
the performance of the company as a whole
Incurring product costs is
an asset exchange transaction.
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
Product costs are initially recorded in ------------ and are later -------------------------------
-expensed in the period when the related units are sold
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
Costs that are not classified as product costs are normally
expensed in the period incurred
Depreciation on manufacturing equipment is an
indirect product cost, while depreciation on office equipment is a period cost.
Product costs flow from the --- to ------
balance sheet to the income statement
Unlike direct material and direct labor costs, overhead costs must be
allocated to products
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