Question

Score for this attempt: 69 out of 75

Submitted Apr 10 at 10:59am

This attempt took 74 minutes.

Question 1

1.5 / 1.5 pts

Process manufacturing usually reflects a manufacturer that produces small quantities of unique items.

  

True

Correct!  

False

Question 2

1.5 / 1.5 pts

On a common-sized income statement, all items are stated as a percent of total assets or equities at year-end.

Correct!  

False

   

True

Question 3

1.5 / 1.5 pts

A single plantwide overhead rate method is very expensive to apply.

  

True

Correct!  

False

Question 4

0 / 1.5 pts

A process cost accounting system provides product costs for each of the departments or processes within the factory.

You Answered  

False

Correct Answer  

True

Question 5

1.5 / 1.5 pts

If 30,000 units of materials enter production during the first year of operations, 25,000 of the units are finished, and 5,000 are 50% completed, the number of equivalent units of production would be 28,500.

Correct!  

False

   

True

Question 6

1.5 / 1.5 pts

A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities.

Correct!  

True

   

False

Question 7

1.5 / 1.5 pts

Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for developing business strategies.

  

False

Correct!  

True

Question 8

1.5 / 1.5 pts

The payment of dividends is an example of a cost.

  

True

Correct!  

False

Question 9

1.5 / 1.5 pts

The relationship of each asset item as a percent of total assets is an example of vertical analysis.

  

False

Correct!  

True

Question 10

1.5 / 1.5 pts

To arrive at cash flows from operations, it is necessary to convert the income statement from an accrual basis to the cash basis of accounting.

Correct!  

True

   

False

Question 11

1.5 / 1.5 pts

A job order cost system would be appropriate for a crude oil refining business.

Correct!  

False

   

True

Question 12

1.5 / 1.5 pts

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

  

False

Correct!  

True

Question 13

1.5 / 1.5 pts

In the vertical analysis of a balance sheet, the base for current liabilities is total liabilities.

  

True

Correct!  

False

Question 14

1.5 / 1.5 pts

If the budgeted factory overhead cost is $460,000, the budgeted direct labor hours is 80,000, and the actual direct labor hours is 6,700 for the month, the factory overhead rate for the month is $68.65 (if the allocation is based on direct labor hours).

  

True

Correct!  

False

Question 15

1.5 / 1.5 pts

Controlling is the process of monitoring operating results and comparing actual results with the expected results.

Correct!  

True

   

False

Question 16

1.5 / 1.5 pts

Using vertical analysis of the income statement, a company's net income as a percentage of sales is 15%; therefore, the cost of goods sold as a percentage of sales must be 85%.

Correct!  

False

   

True

Question 17

1.5 / 1.5 pts

Planning is the process of monitoring operating results and comparing actual results with the expected results.

Correct!  

False

   

True

Question 18

1.5 / 1.5 pts

Custom-made goods would be accounted for using a process costing system.

  

True

Correct!  

False

Question 19

1.5 / 1.5 pts

If the costs for direct materials, direct labor, and factory overhead were $277,300, $52,600, and $61,000, respectively, for 14,000 equivalent units of production, the total conversion cost was $390,900.

Correct!  

False

   

True

Question 20

1.5 / 1.5 pts

The acquisition of land in exchange for common stock is an example of noncash investing and financing activity.

  

False

Correct!  

True

Question 21

1.5 / 1.5 pts

A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

  

True

Correct!  

False

Question 22

1.5 / 1.5 pts

If the products of a manufacturing process are produced to customer specifications, a process cost system is more appropriate than a job order cost system.

Correct!  

False

   

True

Question 23

1.5 / 1.5 pts

The document that serves as the basis for recording direct labor on a job cost sheet is the clock card.

  

True

Correct!  

False

Question 24

1.5 / 1.5 pts

A 15% change in sales will result in a 15% change in net income.

Correct!  

False

   

True

Question 25

1.5 / 1.5 pts

Rarely will the cash flows from operating activities, as reported on the statement of cash flows, be the same as the net income reported on the income statement.

  

False

Correct!  

True

Question 26

0 / 1.5 pts

Use of a plantwide factory overhead rate assumes that the activities causing overhead costs are different across different departments and products.

You Answered  

True

Correct Answer  

False

Question 27

1.5 / 1.5 pts

Comparative financial statements are designed to compare the financial statements of two or more corporations.

  

True

Correct!  

False

Question 28

1.5 / 1.5 pts

Both process and job order cost systems maintain perpetual inventory accounts with subsidiary ledgers.

Correct!  

True

   

False

Question 29

1.5 / 1.5 pts

A staff department has no direct authority over a line department.

Correct!  

True

   

False

Question 30

1.5 / 1.5 pts

In a common-sized income statement, each item is expressed as a percentage of net income.

Correct!  

False

   

True

Question 31

1.5 / 1.5 pts

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

  

False

Correct!  

True

Question 32

0 / 1.5 pts

The materials requisition serves as the source document for debiting the accounts in the materials ledger.

Correct Answer  

False

You Answered  

True

Question 33

0 / 1.5 pts

When the goods are sold, their costs are transferred from Work in Process to Finished Goods.

Correct Answer  

False

You Answered  

True

Question 34

1.5 / 1.5 pts

Process manufacturers typically use large machines to process a continuous flow of raw materials into a finished state.

Correct!  

True

   

False

Question 35

1.5 / 1.5 pts

The vice president of human resources and the controller hold line positions in most large organizations.

Correct!  

False

   

True

Question 36

1.5 / 1.5 pts

Cash outflows from financing activities include the payment of cash dividends, the acquisition of treasury stock, and the repayment of amounts borrowed.

  

False

Correct!  

True

Question 37

1.5 / 1.5 pts

Conversion costs include materials, direct labor, and factory overhead.

  

True

Correct!  

False

Question 38

1.5 / 1.5 pts

A manufacturer may employ a job order cost system for some of its products and a process cost system for others.

Correct!  

True

   

False

Question 39

1.5 / 1.5 pts

If the budgeted factory overhead cost is $460,000, the budgeted direct labor hours is 80,000, and the actual direct labor hours is 6,700 for the month, the amount of factory overhead to be allocated is $38,525 (if the allocation is based on direct labor hours).

Correct!  

True

   

False

Question 40

1.5 / 1.5 pts

Managers depend on product costing to make decisions regarding continuing operations and product mix.

Correct!  

True

   

False

Question 41

1.5 / 1.5 pts

A plantwide factory overhead rate is computed by dividing total budgeted factory overhead costs by the plantwide allocation base.

  

False

Correct!  

True

Question 42

1.5 / 1.5 pts

Cash flows from investing activities, as part of the statement of cash flows, would include any payments for the purchase of treasury stock.

Correct!  

False

   

True

Question 43

1.5 / 1.5 pts

In most business organizations, the chief management accountant is called the controller.

Correct!  

True

   

False

Question 44

1.5 / 1.5 pts

Planning is the process of developing the company’s objectives or goals and translating these objectives into courses of action.

Correct!  

True

   

False

Question 45

1.5 / 1.5 pts

The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.

Correct!  

True

   

False

Question 46

1.5 / 1.5 pts

When a plantwide factory overhead rate is used, overhead costs are applied to all products by a single rate.

  

False

Correct!  

True

Question 47

1.5 / 1.5 pts

Goods that are partway through the manufacturing process, but not yet complete, are referred to as materials inventory.

  

True

Correct!  

False

Question 48

1.5 / 1.5 pts

In a process cost system, product costs are accumulated by processing department rather than by job.

  

False

Correct!  

True

Question 49

1.5 / 1.5 pts

Cash flows from operating activities, as part of the statement of cash flows, include cash transactions that enter into the determination of net income.

  

False

Correct!  

True

Question 50

1.5 / 1.5 pts

If a business issued bonds payable in exchange for land, the transaction would be reported in a separate schedule on the statement of cash flows.

  

False

Correct!  

True

Quiz Score: 69 out of 75

Answer 1

1. False , Process manufacturing usually reflects a manufacturer that produces small quantities of unique items.

Process Costing is method ascertaining cost of the product and can be used by any manufacturer whether small or large.

2. False, On a common-sized income statement, all items are stated as a percent of total assets or equities at year-end.

3. False, A single plantwide overhead rate method is very expensive to apply.

Instead, it is the easiest and cheapest way to allocate overhead.Single overhead rates apply cost allocations for expenses incurred across the entire plant.

4. True, A process cost accounting system provides product costs for each of the departments or processes within the factory.