Does Washburn Guitars have a
mathematical formula to compute the cost of
each guitar?
1. Yes
2. No
50%
1
50%
2
Are there accounting tools to help companies such
as Washburn Guitars to compute the cost of
manufacturing a single product?
1. Yes
2. No
50%
1
50%
2
Does the management of Washburn Guitars
use product costing to help determine
suppliers?
1. Yes
2. No
50%
1
50%
2
Does the management of Washburn Guitars
use product costing to help make decisions
with regards to changing products?
1. Yes
2. No
50%
1
50%
2
Should all companies use managerial
accounting for manufacturing cost decisionmaking?
1. Yes
2. No
50%
1
50%
2
The management process has 4
basic phases.
1. True
2. False
50%
1
50%
2
An organizational chart in a manufacturing
company replaces a chart of accounts.
1. True
2. False
50%
1
50%
2
Direct labor includes the salaries and wages
of assembly-line workers and the office
workers.
1. True
2. False
50%
1
50%
2
Conversion costs are the costs of converting
materials into a finished product.
1. True
2. False
50%
1
50%
2
Period costs include selling and
administrative expenses.
1. True
2. False
50%
1
50%
2
Costs of direct materials and direct labor
that do not enter directly into the finished
product are recorded as period costs.
1. True
2. False
50%
1
50%
2
The Materials inventory, Work in process inventory and
Finished goods inventory are reported in the current
assets section of the balance sheet for a
manufacturing company.
1. True
2. False
50%
1
50%
2
Under managerial accounting, which of the
following does not relate to the reports that
are prepared?
25%
1.
2.
3.
4.
25%
25%
25%
prepared periodically or
as needed
prepared according to
management needs
prepared according to
GAAP
prepared only for
internal management
1
2
3
4
The process used by management to develop the
company’s objectives (goals) and to translate
these objectives into courses of action is called
25%
1.
2.
3.
4.
25%
25%
25%
planning
directing
controlling
improving
1
2
3
4
Which of the following is not a
manufacturing cost?
25%
25%
25%
25%
1. Direct labor
2. Administrative
office salaries
3. Direct materials
4. Factory overhead
1
2
3
4
Which of the following is not
considered a period cost?
25%
25%
25%
25%
1. Sales salaries
expenses
2. Office supplies
expense
3. Direct materials
4. Depreciation
expense on the
office equipment
1
2
3
4
Prime costs consist of
1.
2.
3.
4.
direct labor and
administrative labor
costs
direct labor and
factory overhead
costs
direct materials and
direct labor costs
direct materials and
factory overhead
costs
25%
1
25%
2
25%
3
25%
4
Product costs consist of
1.
2.
3.
4.
direct materials and
direct labor
selling and
administrative
expenses
period costs and
conversion costs
direct materials, direct
labor, and factory
overhead
25%
1
25%
2
25%
3
25%
4
Which of the following will not appear on the
balance sheet of a manufacturing company?
25%
25%
25%
25%
1. Cost of goods
manufactured
2. Finished goods
inventory
3. Work in Process
inventory
4. Materials inventory
1
2
3
4
The cost of completed products that have
not yet been sold will be reported in
25%
25%
25%
25%
1. Cost of goods
manufactured
2. Materials inventory
3. Work in process
inventory
4. Finished goods
inventory
1
2
3
4
The cost of goods manufactured for a
manufacturing company is computed as follows:
1.
2.
3.
4.
Beginning work in process
inventory + Total manufacturing
costs + Ending work in process
inventory
Beginning work in process
inventory + Total manufacturing
costs - Ending work in process
inventory
Beginning work in process
inventory - Total manufacturing
costs - Ending work in process
inventory
Beginning finished goods
inventory + Total manufacturing
costs + Ending finished goods
inventory
25%
1
25%
2
25%
3
25%
4
A manufacturing company computes its cost
of goods sold by
1.
2.
3.
4.
Beginning finished goods
inventory + Cost of goods
purchased – Ending finished
goods inventory
Ending finished goods
inventory - Cost of goods
manufactured – Beginning
finished goods inventory
Beginning finished goods
inventory - Cost of goods
manufactured – Ending
finished goods inventory
Beginning finished goods
inventory + Cost of goods
manufactured – Ending
finished goods inventory
25%
1
25%
2
25%
3
25%
4