Multiple Choice Questions

Period costs include direct materials and direct labor.
  • True
  • False
If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.
  • True
  • False
A cost can be a payment of cash for the purpose of generating revenues.
  • True
  • False
Conversion costs are the combination of direct labor, direct material, and factory overhead costs.
  • True
  • False
Product costs include direct labor and advertising expense.
  • False
  • Fakse
  • True
Manufacturers use machinery and labor to convert direct materials into finished products.
  • True
  • False
Labor costs that are directly traceable to the product are part of factory overhead.
  • True
  • False
A cost object indicates how costs are related or identified.
  • True
  • False
A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.
  • True
  • False
A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report.
  • True
  • False
The costs of materials and labor that do not enter directly into the finished product are classified as factory overhead.
  • True
  • False
Direct labor costs are included in the conversion costs of a product.
  • True
  • False
Controlling is the process of monitoring operating results and comparing actual results with the expected results.
  • True
  • False
Factory overhead cost is sometimes referred to as factory burden.
  • True
  • False
The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.
  • True
  • False
Indirect costs can be specifically traced to a cost object.
  • True
  • False
Managerial information is for external as well as internal stakeholders.
  • True
  • False
Managers use managerial information to evaluate performance of a company's operation.
  • True
  • False
Prime costs consist of factory overhead and direct labor.
  • True
  • False
0 h : 0 m : 1 s

Multiple Choice Questions
Answered Not Answered Not Visited Correct : 0 Incorrect : 0