Question 1

For each of the following costs, classify them as either:
-Administrative office salaries
A)Direct costs
B)Indirect costs
C)Neither direct nor indirect costs

Accepted Answer

The answer of For each of the following costs, classify...

Question 2

The phases of the management process are listed below. Match each phase to the appropriate description.
-Monitoring the operating results of implemented plans and comparing actual results to expected results
A)Planning
B)Directing
C)Controlling
D)Improving
E)Decision making

Accepted Answer

Controlling is the management phase that involves monitoring the operating results of implemented plans and comparing the actual results against the expected results to ensure that objectives are achieved. This phase is crucial for identifying deviations from the plan and initiating corrective actions.

Question 3

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.
-Accountant salaries
A)Product
B)Period

Accepted Answer

Accountant salaries are typically considered a period cost, as they are not directly related to the production of a specific product but are instead incurred to support the overall operation of the business.

Question 4

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given.
-Delivery costs to take the bicycles to stores
A)Product
B)Period

Accepted Answer

Delivery costs to take bicycles to stores are considered period costs because they are not incurred to manufacture a product but are related to the selling and administrative functions of the business.

Question 5

For each of the following costs, classify them as either:
-Insurance expired on administrative facilities
A)Direct costs
B)Indirect costs
C)Neither direct nor indirect costs

Accepted Answer

This cost is not directly tied to the production of goods or services, nor is it classified as an overhead cost that is necessary to maintain production. It is simply a cost related to administrative facilities and insurance, which does not fall into either of these categories.

Question 6

For each of the following costs, classify them as either:
-Factory equipment depreciation
A)Direct costs
B)Indirect costs
C)Neither direct nor indirect costs

Accepted Answer

Factory equipment depreciation is considered an indirect cost because it cannot be directly traced to a specific product or cost object. Instead, it is a general cost related to the overall operation of the factory and is allocated across all products.

Question 7

The following are costs incurred by a lawn mower manufacturer. Identify them as either:
-Grease for wheel axles
A)Direct materials
B)Direct labor
C)Factory overhead

Accepted Answer

Grease for wheel axles is considered factory overhead because it is an indirect cost that cannot be directly traced to the production of a specific lawn mower.

Question 8

The following are costs incurred by a lawn mower manufacturer. Identify them as either:
-Wages of assemblers
A)Direct materials
B)Direct labor
C)Factory overhead

Accepted Answer

Wages of assemblers are considered direct labor because they are directly involved in the production of the lawn mowers, making it easy to trace these costs to the manufacturing process.

Question 9

For each of the following costs, classify them as either:
-Materials traceable to specific products
A)Direct costs
B)Indirect costs
C)Neither direct nor indirect costs

Accepted Answer

Materials traceable to specific products are considered direct costs because they can be directly attributed to the production of specific goods or services.

Question 10

The phases of the management process are listed below. Match each phase to the appropriate description.
-Used by management to develop the organization's objectives and goals
A)Planning
B)Directing
C)Controlling
D)Improving
E)Decision making

Accepted Answer

Planning is the phase where management sets the organization's objectives and goals, outlining how to achieve them.

Question 11

For each of the following costs, classify them as either:
-Materials not traceable to specific products
A)Direct costs
B)Indirect costs
C)Neither direct nor indirect costs

Accepted Answer

Materials not traceable to specific products are considered indirect costs because they cannot be directly linked to the production of a specific product. Direct costs are those that can be directly attributed to the production of a specific product, such as raw materials used in the product. Indirect costs, on the other hand, are costs that are necessary for production but cannot be directly linked to a specific product, such as maintenance supplies or factory utilities.

Question 12

The following are costs incurred by a lawn mower manufacturer. Identify them as either:
-Wheels
A)Direct materials
B)Direct labor
C)Factory overhead

Accepted Answer

Wheels are considered direct materials because they are a primary component that can be directly traced to the finished product.

Question 13

The phases of the management process are listed below. Match each phase to the appropriate description.
-Managers must continually choose among alternative actions
A)Planning
B)Directing
C)Controlling
D)Improving
E)Decision making

Accepted Answer

Decision making is the phase where managers must continually choose among alternative actions. This is a fundamental aspect of management, as decisions need to be made at all levels and stages of the management process.

Question 14

For each of the following costs, classify them as either:
-Product assembly labor incurred
A)Direct costs
B)Indirect costs
C)Neither direct nor indirect costs

Accepted Answer

Product assembly labor incurred is a direct cost because it can be directly traced to the production of specific goods or services.

Question 15

The phases of the management process are listed below. Match each phase to the appropriate description.
-Used by managers for continuous improvement
A)Planning
B)Directing
C)Controlling
D)Improving
E)Decision making

Accepted Answer

The "Improving" phase is used by managers for continuous improvement, focusing on enhancing processes and performance.

Question 16

The phases of the management process are listed below. Match each phase to the appropriate description.
-Process by which managers run day-to-day operations
A)Planning
B)Directing
C)Controlling
D)Improving
E)Decision making

Accepted Answer

Directing is the phase in the management process where managers guide, lead, and oversee the day-to-day operations of the organization, ensuring that the activities of all personnel align with the organization's goals and plans.

Question 17

The following are costs incurred by a lawn mower manufacturer. Identify them as either:
-Depreciation on worker's tools
A)Direct materials
B)Direct labor
C)Factory overhead

Accepted Answer

Depreciation on worker's tools is considered a factory overhead cost because it is an indirect cost associated with manufacturing the product but cannot be directly traced to the production of a specific product.

Question 18

For each of the following costs, classify them as either:
-Office equipment depreciation
A)Direct costs
B)Indirect costs
C)Neither direct nor indirect costs

Accepted Answer

The answer of For each of the following costs, classify...

Question 19

For each of the following costs, classify them as either:
-Salespersons' salaries
A)Direct costs
B)Indirect costs
C)Neither direct nor indirect costs

Accepted Answer

The answer of For each of the following costs, classify...

Question 20

For each of the following costs, classify them as either:
-Labor for machine maintenance
A)Direct costs
B)Indirect costs
C)Neither direct nor indirect costs

Accepted Answer

Labor costs for machine maintenance are considered indirect costs because they cannot be directly traced to a specific product or production process but are necessary for the overall operation.

Quiz 18: Introduction to Managerial Accounting

For each of the following costs, classify them as either: -Administrative office salaries

The phases of the management process are listed below. Match each phase to the appropriate description. -Monitoring the operating results of implemented plans and comparing actual results to expected results

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given. -Accountant salaries

For each of the following, indicate whether the cost would typically be considered a product or period cost for the cost object given. -Delivery costs to take the bicycles to stores

For each of the following costs, classify them as either: -Insurance expired on administrative facilities

For each of the following costs, classify them as either: -Factory equipment depreciation

The following are costs incurred by a lawn mower manufacturer. Identify them as either: -Grease for wheel axles

The following are costs incurred by a lawn mower manufacturer. Identify them as either: -Wages of assemblers

For each of the following costs, classify them as either: -Materials traceable to specific products

The phases of the management process are listed below. Match each phase to the appropriate description. -Used by management to develop the organization's objectives and goals

For each of the following costs, classify them as either: -Materials not traceable to specific products

The following are costs incurred by a lawn mower manufacturer. Identify them as either: -Wheels

The phases of the management process are listed below. Match each phase to the appropriate description. -Managers must continually choose among alternative actions

For each of the following costs, classify them as either: -Product assembly labor incurred

The phases of the management process are listed below. Match each phase to the appropriate description. -Used by managers for continuous improvement

The phases of the management process are listed below. Match each phase to the appropriate description. -Process by which managers run day-to-day operations

The following are costs incurred by a lawn mower manufacturer. Identify them as either: -Depreciation on worker's tools

For each of the following costs, classify them as either: -Office equipment depreciation

For each of the following costs, classify them as either: -Salespersons' salaries

For each of the following costs, classify them as either: -Labor for machine maintenance