Question- 1

Lots of Stuff Company reports the following data for its first year of operation.
 

  

Work in process inventory,   beginning

$0

 

Work in process inventory, ending

140,000

 

Direct materials used

110,000

 

Direct Labor

115,000

 

Manufacturing overhead

185,000

 

Finished goods inventory,   beginning

0

 

Finished goods inventory, ending

90,000

What are the total manufacturing costs?

A. $455,000 

B. $410,000 

C. $750,000 

D. $520,000

Question- 2

Porches, Inc., sells lawn furniture. Selected financial information for the most recent year follows.
 

Beginning merchandise inventory on January 1 was $33,000.
Ending merchandise inventory on December 31 was $35,000.
Purchases during the year were $92,000.
Selling and administrative expenses were $75,000.
Sales for year were $262,000.
 

What was the value of goods available for sale?

    

A. $125,000 

B. $127,000 

C. $170,000 

D. $ 90,000

Question- 3

Which of the following costs could be found in work in process inventory for a candy bar manufacturer?

    

A. Assembly worker wages 

B. Utilities for administrative offices 

C. Depreciation on sales office 

D. Customer order forms

Question- 4

__________ gathers, summarizes, and reports on the financial impact of changes to business operations.

    

A. Managerial accounting 

B. Planning 

C. Directing 

D. Controlling

Question- 5

Evaluating results against the plan is an example of which of the following management functions?

    

A. Planning 

B. Controlling 

C. Analyzing 

D. Directing

Question- 6

Which of the following is NOT an example of an indirect cost incurred in manufacturing automobiles?

    

A. Plant supervisor salary 

B. Machinery depreciation in the factory 

C. Plant utilities 

D. Cost of the automobile engines

Question- 7

Which of the following people is most likely to use only financial accounting information?

    

A. Vice president of plant operations 

B. Product manager 

C. Plant manager 

D. Bank loan officer

Question- 8

Winner’s Sporting Equipment manufactures sporting goods. Selected costs from the past year include the following. 

  

Plastics used to make products

$151,000

 

Heating and lighting costs for   factory

65,000

 

Factory janitor wages

67,000

 

Costs of shipping to customers

11,000

 

Lubricants used in factory   equipment

2,000

 

Lighting costs for sales office

20,000

 

Depreciation on factory equipment

23,000

 

Office supplies for sales office

6,000

 

Insurance costs for factory

13,000

 

Maintenance worker wages

99,000

 

Freight-in (on plastics)

7,500

 

Aluminum used to make products

175,000

 

Assembly-line worker wages

142,000

 

Salaries of salespeople

74,000

 Period costs for Winner’s Sporting Equipment totaled:

    

A. $91,000. 

B. $37,000. 

C. $188,000. 

D. $111,000.

Question- 9

The IMA issues which of the following certifications?

    

A. CMA 

B. CIA 

C. CFP 

D. CPA

Question- 10

Indirect materials, indirect labor, and indirect manufacturing costs are what type of manufacturing cost?

    

A. Direct labor 

B. Direct materials 

C. Manufacturing overhead 

D. Prime costs

Question- 11

A wave of accounting scandals around the turn of the 21st century prompted which of the following?

    

A. XBRL 

B. IFRS 

C. SOX 

D. ISO

Question- 12

Internal parties receive information about past performance from:

    

A. audit reports. 

B. budget reports. 

C. planning reports. 

D. managerial accounting reports.

Question- 13

Which of the following types of companies has raw materials, work in process, and finished goods inventory?

    

A. Retailers 

B. Manufacturers 

C. Wholesalers 

D. Service companies

Question- 14

Refusing gifts or favors that could be perceived to influence your actions is an example of which ethical standard?

    

A. Credibility 

B. Integrity 

C. Confidentiality 

D. Competence

Question- 15

The costs associated with reengineering machinery and its location within the factory to increase efficiency would be considered which part of the value chain?

    

A. Customer service 

B. Marketing 

C. Research and development 

D. Design

Question- 16

Costs that remain the same among alternatives are:

    

A. sunk costs. 

B. irrelevant costs. 

C. controllable costs. 

D. uncontrollable costs.

Question- 17

The person who is directly responsible for all financial functions is the:

    

A. Treasurer. 

B. CEO. 

C. CFO. 

D. COO.

Question- 18

________ is the business philosophy and a strategy of manufacturing without waste.

    

A. ISO 9001 

B. Lean thinking 

C. TQM 

D. Thin manufacturing

Question- 19

Communicating information fairly and objectively is an example of which ethical standard?

    

A. Credibility 

B. Integrity 

C. Competence 

D. Confidentiality

Question- 20

Which of the following describes the way in which total fixed costs behave?

    

A. They will decrease as production increases. 

B. They will decrease as production decreases. 

C. They will remain the same throughout production levels within the relevant range. 

D. They will increase as production decreases.