Reference no: EM132599748

Question 1: The cost of goods sold for Michaels Manufacturing in the current year was $233,000. The January 1 finished goods inventory balance was $31,600, and the December 31 finished goods inventory balance was $24,200. Cost of goods manufactured during the period was

a. $240,400

b. $233,000

c. $288,800

d. $225,600

Question 2: Accounting designed to meet the needs of decision makers inside the business is

a. general accounting

b. managerial accounting

c. financial accounting

d. external accounting

Question 3: Insurance expense incurred on a factory building would be treated as a

a. direct cost

b. period cost

c. product cost

d. selling cost

Question 4: Managerial accounting provides useful information to managers on product costs.

True

False

Question 5: Indirect costs can be specifically traced to a cost object.

True

False

Question 6: Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

a. investors

b. managers

c. shareholders

d. customers

Question 7: Managers used managerial information for all of the following except

a. to determine the cost of manufacturing a product

b. to support long-term planning decisions

c. to analyze the performance of a company's operations

d. to evaluate the company's stock performance

Question 8: Prime costs consist of direct materials, indirect materials, and direct labor.

True

False

Question 9: Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $196,300; Factory Overhead, $187,900; and Selling Expenses, $45,290.

a. $384,200

b. $187,900

c. $543,800

d. $731,700