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Wednesday, April 15, 2015

60 Test Bank for Introduction to Managerial Accounting 6th Edition by Brewer

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Which of the following should NOT be included as part of manufacturing overhead at a company that makes office furniture?

B. manufacturing equipment depreciation.
C. idle time for direct labor.
D. taxes on a factory building.
A.sheet steel in a file cabinet made by the company.

The salary of the president of a manufacturing company would be classified as which of the following?

D. Direct labor
B.Period cost
C. Manufacturing overhead
A. Product cost

Which of the following costs is an example of a period rather than a product cost?

B.Wages of salespersons.
A. Depreciation on production equipment.
D. Insurance on production equipment.
C. Wages of production machine operators.

Which of the following would be considered a product cost for external financial reporting purposes?

D.Cost of sand spread on the factory floor to absorb oil from manufacturing machines.
A. Cost of a warehouse used to store finished goods.
B. Cost of guided public tours through the company's facilities.
C. Cost of travel necessary to sell the manufactured product.

Last month, when 10,000 units of a product were manufactured, the cost per unit was $60. At this level of activity, variable costs are 50% of total unit costs. If 10,500 units are manufactured next month and cost behavior patterns remain unchanged the:

B. fixed costs will increase in total.
D.total cost per unit will decrease.
C. variable cost per unit will increase.
A. total variable cost will remain unchanged.

Variable cost:

B.remains constant on a per unit basis as the number of units produced increases.
D. decreases on a per unit basis as the number of units produced increases.
A. increases on a per unit basis as the number of units produced increases.
C. remains the same in total as production increases.

Manufacturing overhead consists of:

C.all manufacturing costs, except direct materials and direct labor.
A. all manufacturing costs.
D. indirect labor but not indirect materials.
B. indirect materials but not indirect labor.

Which of the following would NOT be treated as a product cost for external financial reporting purposes?

C. Indirect labor in the factory.
B. Salaries of factory workers.
A. Depreciation on a factory building.
D.Advertising expenses.

Each of the following would be a period cost except:

D. sales commissions.
C.depreciation of a machine used in manufacturing.
B. the cost of a general accounting office.
A. the salary of the company president's secretary.

Conversion cost consists of which of the following?

C. Direct labor cost.
B. Direct materials and direct labor cost.
D.Direct labor and manufacturing overhead cost.
A. Manufacturing overhead cost.

Conversion costs do NOT include:

D. indirect materials.
C. indirect labor.
A. depreciation.
B.direct materials.

Which of the following costs would not be included as part of manufacturing overhead?

B. Depreciation of production equipment.
A.Insurance on sales vehicles.
C. Lubricants for production equipment.
D. Direct labor overtime premium.

Which of the following statements regarding fixed costs is incorrect?

D. Fixed costs expressed on a per unit basis will increase with decreases in activity.
C. Total fixed costs are constant within the relevant range.
B. Fixed costs expressed on a per unit basis will decrease with increases in activity.
A.Expressing fixed costs on a per unit basis usually is the best approach for decision making.

For a lamp manufacturing company, the cost of the insurance on its vehicles that deliver lamps to customers is best described as a: