Accounting: costs and multiple choice flashcard

Managerial Accounting Exam 1 Sample Exam Questions Printed Name: Date: I certify that I have neither given nor received assistance on this exam, in accordance with the University of Cincinnati Student Code of Conduct. Signature: Instructions: Circle your answers for the multiple choice questions on the exam. Fill out the cantors sheet carefully, using a #2 pencil. Your name (last, then first) and M number must be on the cantors sheet. Type of Question Number of Questions Points per question Suggested Time Total Points Multiple Choice 20 questions 3 points each 50 miss. Points You may not use any notes, books, cell phones, other media devices or programmable calculators while taking this exam, but you may use a basic calculator. Some of the questions are conceptual and will only take you about 1 minute each to answer. That leaves 40 minutes for the calculation questions. This does not leave time to ponder the answer or try 3 different ways to solve the problem. Either you know how to solve the problem or you don’t know. If you don’t know, take a guess and move on. Be sure not to get stuck for 10 minutes on one question, because you won’t e able to finish the exam and you’ll get bad grade.

Multiple Choice (2 points each) 1 . Manufacturing overhead consists of: A. All manufacturing costs. B. Indirect materials but not indirect labor. C. All manufacturing costs, except direct materials and direct labor. D. Indirect labor but not indirect materials. 2. A variable cost is a cost whose cost per unit varies as the activity level rises and falls. A. True B. False 3. The traditional format income statement is used as an internal planning and decision-making tool. Its emphasis on cost behavior aids cost-volume-profit analysis, management performance appraisals, and budgeting. A. True 4.

Selling and administrative expenses are product costs under generally accepted accounting principles. A. True 12. Conversion cost consists of which of the following? A. Manufacturing overhead cost. B. Direct materials and direct labor cost. C. Direct labor cost. D. Direct labor and manufacturing overhead cost: 13. Which of the following would NOT be treated as a product cost for external financial reporting purposes A. Depreciation on a factory building. B. Salaries of factory workers. C. Indirect labor in the factory. D. Advertising expenses. 14. A manufacturing company prepays its insurance coverage for a three-year erred.

The premium for the three years is $2, 700 and is paid at the beginning of the first year. Eighty percent of the premium applies to manufacturing operations and 20% applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage? A. Option A B. Option B C. Option C D. Option D 15. At an activity level of 9, 200 machine-hours in a month, Owner Corporation’s total variable production engineering cost is $761 , 300 and its total fixed production engineering cost is $154, 008.