provides objective financial information must adhere to GAAP has no mandatory rules none of the other statements are true 4 points Question 2 Activity-based costingAnswer is a traditional costing...

4 points

Question 2

1. Activity-based costingAnswer

   is a traditional costing method

   encourages process value analysis

   always results in a lower cost assigned to goods or services

   all of these

4 points

Question 3

1. The controller of an organization participates inAnswer

   planning

   controlling

   decision making

   all of these

4 points

Question 4

1. The objective of profit maximizationAnswer

   should be the only goal of an organization

   is an objective of Financial accounting but not Management accounting

   should be achieved through legal and ethical means

   should outweigh the goal of product quality

4 points

Question 5

1. Which of the following areas is notemphasized on the CMA examination?Answer

   external auditing and business law

   economics, finance, and management

   decision analysis and information systems

   financial accounting and reporting

4 points

Question 6

1. An indirect costAnswer

   can be easily and accurately traced to a cost object.

   is hard to trace.

   should never be assigned to a cost object.

   do none of these.

4 points

Question 7

1. Which of the following is an example of an intangible product?Answer

   hamburgers

   computers

   automobiles

   dental care

4 points

Question 8

1. Which of the following is an example of direct labor?Answer

   chef in a restaurant

   janitor in a production plant

   security guard for the factory

   management accountant

4 points

Question 9

1. Overhead includesAnswer

   indirect labor.

   indirect materials.

   supplies.

   all of these.

4 points

Question 10

1. The unit costAnswer

   is the total product costs divided by the number of units produced

   includes period costs

   is the total prime costs divided by the number of units produced

   is the total conversion costs divided by the number of units produced

4 points

Question 11

1. Prime cost isAnswer

   indirect materials cost and indirect labor cost

   direct materials cost and direct labor cost

   direct labor cost and overhead cost

   selling cost and administrative cost

4 points

Question 12

1. Conversion cost is the sum ofAnswer

   direct materials cost and direct labor cost

   indirect labor cost and overhead cost

   product costs and period costs

   direct labor cost and overhead cost

4 points

Question 13

1. Which of the following is an example of a period cost?Answer

   research and development

   selling and marketing

   general accounting

   all of these

4 points

Question 14

1. The cost of the partially completed goods at the end of the period would beAnswer

   beginning work in process inventory

   cost of goods manufactured

   ending work in process inventory

   ending finished goods inventory

4 points

Question 15

1. Which of the following would be found on the Balance Sheet of a manufacturer?Answer

   cost of goods sold

   cost of goods manufactured

   factory building

   all of the these

4 points

Question 16

1. Figure 2-1.
   Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances.
   
   Refer to Figure 2-1: The per-unit conversion cost was:Answer

   $218.75

   $156.25

   $162.50

   $100.00

4 points

Question 17

1. Figure 2-1.
   Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances.
   
   Refer to Figure 2-1: The total product costs for last month were:Answer

   $1,750,000

   $2,110,000

   $1,300,000

   $1,250,000

4 points

Question 18

1. Figure 2-1.
   Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances.
   
   Refer to Figure 2-1: The total per unit prime cost was:Answer

   $263.75

   $62.50

   $162.50

   $156.25

4 points

Question 19

1. Figure 2-1.
   Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances.
   
   Refer to Figure 2-1: What was the amount of cost of goods manufactured last month?Answer

   $1,750,000

   $1,250,000

   $1,300,000

   $2,110,000

4 points

Question 20

1. During the month of June, Telecom Inc. had cost of goods manufactured of $112,000, direct materials cost of $52,000, direct labor cost of $37,000 and overhead cost of $26,000. The Work in Process balance at June 30 equaled $10,000. What was the Work in Process balance on June 1?Answer

   $7,000

   $13,000

   $10,000

   $115,000

4 points

Question 21

1. Lakeland, Inc. manufactured 5,000 units during the month of March. They incurred direct materials cost of $100,000 and overhead cost of $40,000. If their per-unit prime cost was $26.00 per unit how much direct labor cost did they incur during March?Answer

   $20,000

   $35,000

   $90,000

   $30,000

4 points

Question 22

1. Figure 2-3.
   Bartlow, Inc. had the following Income Statement for the month of May.
   
   

   Sales Revenue	$428,000
   Cost of Goods Sold	205,440
   Gross Margin	222,560
   Less:
   Selling Expenses	81,320
   Administrative Expenses	72,760
   Operating Income	$ 68,480

   
   
   Refer to Figure 2-3: What was the sales revenue percent?Answer

   100%

   48%

   52%

   16%

4 points

Question 23

1. Figure 2-3.
   Bartlow, Inc. had the following Income Statement for the month of May.
   
   

   Sales Revenue	$428,000
   Cost of Goods Sold	205,440
   Gross Margin	222,560
   Less:
   Selling Expenses	81,320
   Administrative Expenses	72,760
   Operating Income	$ 68,480

   
   
   Refer to Figure 2-3: What was the cost of goods sold percent?Answer

   100%

   19%

   52%

   48%

4 points

Question 24

1. Figure 2-4.
   Junko Company makes typewriters. During the year Junko manufactured 97,000 typewriters. Finished Goods Inventory had the following units on hand:
   
   

   January 1	1,260
   December 31	1,040

   
   
   Refer to Figure 2-4: How many typewriters did Junko sell during the year?Answer

   96,780

   97,220

   97,000

   98,260

4 points

Question 25

1. Figure 2-5.
   In July, Econo Company purchased materials costing $21,000 and incurred direct labor cost of $18,000. Overhead totaled $32,000 for the month. Information on inventories was as follows:
   
   

   July 1	July 31
   Materials	$6,200	$7,100
   Work in Process	$ 700	$1,200
   Finished Goods	$3,300	$2,700

   
   
   Refer to Figure 2-5: What was the cost of direct materials used in July?Answer

   $21,000

   $20,100

   $21,900

   $20,500

4 points

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