Chapter 19 Môn Managerial Accounting | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

lOMoAR cPSD| 58605085
(b) The wages earned by computer assemblers.
(c) The cost of the memory chips.
(d) Depreciation on testing equipment. Mcq
5. Which of the following is not an element of Chap 19 manufacturing overhead? 1. Managerial accounting: (a) Sales manager’s salary.
(a) is governed by generally accepted accounting (b) Plant manager’s salary. principles.
(c) Factory repairman’s wages. (b) places emphasis on special-purpose information.
(d) Product inspector’s salary.
(c) pertains to the entity as a whole and is 6. Indirect labor is a: highlyaggregated. (a) nonmanufacturing cost. (d) is limited to cost data. (b) raw material cost.
2. The management of an organization (c) product cost.
performs several broad functions. They (d) period cost. are:
7. Which of the following costs are classified as a
(a) planning, directing, and selling. period cost?
(b) planning, directing, and controlling.
(a) Wages paid to a factory custodian.
(c) planning, manufacturing, and controlling.
(b) Wages paid to a production department
(d) directing, manufacturing, and controlling. supervisor. 3. Direct materials are a: (c) Wages paid to a cost accounting Product Manufacturing Period departmentsupervisor. Cost Overhead Cost Cost
(d) Wages paid to an assembly worker. (a) Yes Yes No
8. For the year, Redder Company has cost of
goods manufactured of $600,000, beginning (b) Yes No No
finished goods inventory of $200,000, and (c) Yes Yes Yes
ending finished goods inventory of $250,000. The cost of goods sold is: (d) No No No (a) $450,000. (c) $550,000.
4. Which of the following costs would a computer manufacturer include in manufacturing (b) $500,000. (d) $600,000. overhead?
9. Cost of goods available for sale is a step in the
(a) The cost of the disk drives.
calculation of cost of goods sold of: lOMoAR cPSD| 58605085
(a) a merchandising company but not a (c)
the audit committee, rather than top manufacturing company.
management, is responsible for the company’s financial statements.
(b) a manufacturing company but not a merchandising company. (d) reports prepared by managerial accountantsmust comply with generally (c) a merchandising company and a
accepted accounting principles (GAAP). manufacturing company.
13. Which of the following managerial
(d) neither a manufacturing company nor a
accounting techniques attempts to allocate merchandising company.
manufacturing overhead in a more meaningful fashion?
10. A cost of goods manufactured schedule
shows beginning and ending inventories for: (a) Just-in-time inventory.
(a) raw materials and work in process only. (b) Total quality management. (b) work in process only. (c) Balanced scorecard. (c) raw materials only. (d) Activity-based costing.
(d) raw materials, work in process, and fi
14. Corporate social responsibility refers to: nishedgoods. (a) the practice by management of
11. The formula to determine the cost of goods
reviewing all business processes in an effort to manufactured is:
increase productivity and eliminate waste. (a)
Beginning raw materials inventory 1 (b)
an approach used to allocate overhead
Total manufacturing costs 2 Ending work in
based on each product’s use of activities. process inventory. (c)
the attempt by management to identify (b)
Beginning work in process inventory 1
and eliminate constraints within the value chain.
Total manufacturing costs 2 Ending finished (d)
efforts by companies to employ goods inventory.
sustainable business practices with regard to (c)
Beginning finished good inventory 1
employees and the environment.
Total manufacturing costs 2 Ending finished Solution Chap19 goods inventory. 1. (b) Managerial accounting emphasizes (d)
Beginning work in process inventory 1
special-purpose information. The other
Total manufacturing costs 2 Ending work in
choices are incorrect because (a) financial process inventory.
accounting is governed by generally accepted
12. After passage of the Sarbanes-Oxley Act:
accounting principles, (c) financial accounting
pertains to the entity as a whole and is highly (a) reports prepared by managerial
aggregated, and (d) cost accounting and cost
accountantsmust by audited by CPAs.
data are a subset of management accounting. (b)
CEOs and CFOs must certify that
2. (b) Planning, directing, and controlling are
financial statements give a fair presentation of
thebroad functions performed by the
the company’s operating results. lOMoAR cPSD| 58605085
management of an organization. The other
7. (c) Wages paid to a cost accounting
choices are incorrect because (a) selling is
department supervisor would be included in
performed by the sales group in the
administrative expenses and classified as a
organization, not by management; (c)
period cost. The other choices are incorrect manufacturing is performed by the
because (a) factory custodian wages are
manufacturing group in the organization, not
indirect labor which is manufacturing
by management; and (d) manufacturing is overhead and a
performed by the manufacturing group in the
product cost, (b) production department
organization, not by management.
supervisor wages are indirect labor which is
3. (b) Direct materials are a product cost only.
manufacturing overhead and a product cost, and
Therefore, choices (a), (c), and (d) are
(d) assembly worker wages is direct labor and is
incorrect as direct materials are not a product cost.
manufacturing overhead or a period cost.
8. (c) Cost of goods sold is computed as
4. (d) Depreciation on testing equipment would
Beginning finished goods inventory ($200,000) 1
be included in manufacturing overhead
Cost of goods manufactured ($600,000) 2
because it is indirectly associated with the
Ending finished goods inventory ($250,000), or
finished product. The other choices are
$200,000 1 $600,000 2 $250,000 5 $550,000.
incorrect because (a) disk drives would be
Therefore, choices (a) $450,000,
direct materials, (b) computer assembler wages
(b) $500,000, and (d) $600,000 are incorrect
would be direct labor, and (c) memory chips 9.
(c) Both a merchandising company and a would be direct materials.
manufacturing company use cost of goods
available for sale to calculate cost of goods sold.
5. (a) The sales manager’s salary is not directly or
Therefore, choices (a) only a merchandising
indirectly associated with the manufacture of
company, (b) only a manufacturing company,
the finished product. The other choices are
and (d) neither a manufacturing company or a
incorrect because (b) the plant manager’s
salary, (c) the factory repairman’s wages, and
merchandising company are incorrect.
(d) the product inspector’s salary are all 10.
(a) A cost of goods manufactured
elements of manufacturing overhead. schedule shows beginning and ending
6. (c) Indirect labor is a product cost because it is
inventories for raw materials and work in
part of the effort required to produce a process only.
product. The other choices are incorrect
Therefore, choices (b) work in process only and
because (a) indirect labor is a manufacturing
(c) raw materials only are incorrect. Choice (d) is
cost because it is part of the effort required to
incorrect because it does not include finished
produce a product, (b) indirect labor is not a goods.
raw material cost because raw material costs
only include direct materials and indirect 11.
(d) The formula to determine the cost of
materials, and (d) indirect labor is not a period
goods manufactured is Beginning work in
cost because it is part of the effort required to
process inventory 1 Total manufacturing costs 2 produce a product.
Ending work in process inventory. The other lOMoAR cPSD| 58605085
choices are incorrect because (a) raw material
inventory, (b) ending finished goods
inventory, and (c) beginning finished goods
inventory and ending finished goods inventory
are not part of the computation. 12.
(b) CEOs and CFOs must certify that
financial statements give a fair presentation of
the company’s operating results. The other
choices are incorrect because (a) reports prepared by financial (not managerial)
accountants must be audited by CPAs; (c) SOX
clarifies that top management, not the audit
committee, is responsible for the company’s
financial statements; and (d) reports by
financial (not managerial) accountants must comply with GAAP. 13.
(d) Activity-based costing attempts to
allocate manufacturing overhead in a more
meaningful fashion. Therefore, choices
(a) just-in-time inventory, (b) total quality
management, and (c) balanced scorecard are incorrect.
14. (d) Corporate social responsibility refers to
efforts by companies to employ sustainable
business practices with regard to employees and
the environment. The other choices are incorrect
because (a) defines lean manufacturing, (b)
refers to activity-based costing, and (c) describes the theory of constraints .