1. Expenses that are closely related to a particular department and can easily be assigned
to it during an accounting period are called _ expenses.
a.operating
b.indirect
c.allocated
d.direct
2.In a store with several sales departments, departmentalized accounts would be
used for:
a. sales only.
b. sales, purchases, and
merchandise inventory.
c. sales and other income items only.
d.all expense accounts.
3.A department probably would be considered for elimination if it had a:
a.positive contribution margin and a net income from operations.
b. positive contribution margin and a net loss from operations.
c.negative contribution
margin and a net loss from operations.
d. net loss, regardless of the contribution margin.
4. The procedure for assigning indirect expenses to departments at the end of
an accounting period is called:
a. valuation.
b. amortization.
c.allocation.
d. distribution.
5.If a segment of business is considered a profit center:
a.it must sell products or services to customers outside the business.
b.both revenue and cost
data must be accumulated for the segment.
c.no indirect expenses can be allocated to the segment.
d.only revenue is accumulated for the segment.
6.The contribution margin of a department is the difference between its:
a.net sales and the total expenses.
b.net sales and its cost
of goods sold.
c.gross profit on sales and its indirect expenses.
d.gross profit on sales and its direct expenses.
7. A transfer price is the:
a. price for which a company sells its products to customers.
b. price at which goods
are moved from one department of a company to another department of the
company.
c. basis on which indirect expenses are allocated.
d. price at which a company purchases its products from a supplier.
8.Department B had net sales of $70,000, gross profit on sales of$35,000, total
direct expenses of $9,000, and total indirect expenses of $6,000. Department
B's contribution margin is:
a.$20,000.
b.$29,000.
c.$26,000.
d.$35,000.
9. Department A had total sales of $84,000 and Department B had total sales of
$36,000. Other Office Expenses, totaling $2,500, are allocated on the basis of
total sales. The amount allocated to Department B is:
a.$750.
b.$1,750.
c.$1,250.
d.$1,071.
10. One
department in a company had a contribution margin of $15,000 and a net loss
from operations of $2,000. The indirect expenses allocated to this department
would have been incurred whether or not the department existed. If this
department had been eliminated, the company's reported net income would have
been:
a.$2,000 higher.
b.$15,000 lower.
c.$13,000 lower.
d. the same with or without the department.
11.The Balance Sheet of a manufacturing firm will include which account that
will NOT be included in the Balance Sheet of a service firm?
a. Cash
b.Accounts Payable
c. Prepaid insurance
d.Work in Process
Inventory
12.Closing entries for a manufacturing firm include all of the following
EXCEPT:
a.transferring all manufacturing cost accounts to XXXXX
b.transferring a1l Revenue and Expense account balances to XXXXX
c.closing Manufacturing Summary to Income Summary.
d. closing Income Summary to
Net Income.
13.Wages paid to the factory maintenance and repair personnel of a
manufacturing business are shown:
a.in the Operating Expenses section of the income statement
b.as Direct Labor on the statement of cost goods manufactured.
c. as part of Manufacturing
Overhead on the statement cost of goods manufactured.
d.as a part of the Cost of Goods Sold section of the income statement.
14. The
manufacturing costs incurred during the year are:
a. shown by the expense accounts such as Wages Expense and Utilities Expense
that are listed in the Operating Expenses section of the income statement.
b.shown as Direct Labor, Raw Materials, and Manufacturing Overhead in the
Operating Expenses section of the ncome statement.
c.used in the computation
of cost of goods manufactured.
d. shown in the Cost of Goods Sold section of the income statement.
15.Indirect
labor for a manufacturing business includes the wages of:
a. factory repair and
maintenance employees.
b. employees who assemble the product.
c.employees who sell the product.
d. office employees.
16. Gross profit for a manufacturing business is computed by deducting:
a. cost of goods sold from
net sales.
b. cost of goods manufactured from net sales.
c. the ending finished goods inventory from the total goods available for sale.
d. operating expenses from the costs of goods sold.
17.The three components of total manufacturing cost are:
a.cost of goods manufactured, cost of goods sold, and work in process.
b.raw materials used,
direct labor, and manufacturing overhead.
c. selling expenses, administrative expenses, and manufacturing overhead.
d.raw materials used, direct labor, and cost of goods sold.
18.The cost
of goods manufactured for a fiscal period is reported on:
a. both the statement of
cost of goods manufactured and the income statement.
b. both the statement of the cost of goods manufactured and the balance sheet.
c.both the income statement and the balance sheet.
d.the statement of cost of goods manufactured only.
19.The
balance sheet of a manufacturing business shows:
a.the finished goods inventory and the cost of goods manufactured.
b.the cost of goods manufactured rather than inventory figures.
c.a single inventory figure-the amount of the finished goods inventory.
d.the raw materials
inventory, the work in process inventory, and the finished goods inventory.
20.The Indirect Labor account is closed by crediting it and debiting:
a. Wages Payable.
b. income Summary.
c.Manufacturing
Summary.
d.Wages Expense.
to it during an accounting period are called _ expenses.
a.operating
b.indirect
c.allocated
d.direct
2.In a store with several sales departments, departmentalized accounts would be
used for:
a. sales only.
b. sales, purchases, and
merchandise inventory.
c. sales and other income items only.
d.all expense accounts.
3.A department probably would be considered for elimination if it had a:
a.positive contribution margin and a net income from operations.
b. positive contribution margin and a net loss from operations.
c.negative contribution
margin and a net loss from operations.
d. net loss, regardless of the contribution margin.
4. The procedure for assigning indirect expenses to departments at the end of
an accounting period is called:
a. valuation.
b. amortization.
c.allocation.
d. distribution.
5.If a segment of business is considered a profit center:
a.it must sell products or services to customers outside the business.
b.both revenue and cost
data must be accumulated for the segment.
c.no indirect expenses can be allocated to the segment.
d.only revenue is accumulated for the segment.
6.The contribution margin of a department is the difference between its:
a.net sales and the total expenses.
b.net sales and its cost
of goods sold.
c.gross profit on sales and its indirect expenses.
d.gross profit on sales and its direct expenses.
7. A transfer price is the:
a. price for which a company sells its products to customers.
b. price at which goods
are moved from one department of a company to another department of the
company.
c. basis on which indirect expenses are allocated.
d. price at which a company purchases its products from a supplier.
8.Department B had net sales of $70,000, gross profit on sales of$35,000, total
direct expenses of $9,000, and total indirect expenses of $6,000. Department
B's contribution margin is:
a.$20,000.
b.$29,000.
c.$26,000.
d.$35,000.
9. Department A had total sales of $84,000 and Department B had total sales of
$36,000. Other Office Expenses, totaling $2,500, are allocated on the basis of
total sales. The amount allocated to Department B is:
a.$750.
b.$1,750.
c.$1,250.
d.$1,071.
10. One
department in a company had a contribution margin of $15,000 and a net loss
from operations of $2,000. The indirect expenses allocated to this department
would have been incurred whether or not the department existed. If this
department had been eliminated, the company's reported net income would have
been:
a.$2,000 higher.
b.$15,000 lower.
c.$13,000 lower.
d. the same with or without the department.
11.The Balance Sheet of a manufacturing firm will include which account that
will NOT be included in the Balance Sheet of a service firm?
a. Cash
b.Accounts Payable
c. Prepaid insurance
d.Work in Process
Inventory
12.Closing entries for a manufacturing firm include all of the following
EXCEPT:
a.transferring all manufacturing cost accounts to XXXXX
b.transferring a1l Revenue and Expense account balances to XXXXX
c.closing Manufacturing Summary to Income Summary.
d. closing Income Summary to
Net Income.
13.Wages paid to the factory maintenance and repair personnel of a
manufacturing business are shown:
a.in the Operating Expenses section of the income statement
b.as Direct Labor on the statement of cost goods manufactured.
c. as part of Manufacturing
Overhead on the statement cost of goods manufactured.
d.as a part of the Cost of Goods Sold section of the income statement.
14. The
manufacturing costs incurred during the year are:
a. shown by the expense accounts such as Wages Expense and Utilities Expense
that are listed in the Operating Expenses section of the income statement.
b.shown as Direct Labor, Raw Materials, and Manufacturing Overhead in the
Operating Expenses section of the ncome statement.
c.used in the computation
of cost of goods manufactured.
d. shown in the Cost of Goods Sold section of the income statement.
15.Indirect
labor for a manufacturing business includes the wages of:
a. factory repair and
maintenance employees.
b. employees who assemble the product.
c.employees who sell the product.
d. office employees.
16. Gross profit for a manufacturing business is computed by deducting:
a. cost of goods sold from
net sales.
b. cost of goods manufactured from net sales.
c. the ending finished goods inventory from the total goods available for sale.
d. operating expenses from the costs of goods sold.
17.The three components of total manufacturing cost are:
a.cost of goods manufactured, cost of goods sold, and work in process.
b.raw materials used,
direct labor, and manufacturing overhead.
c. selling expenses, administrative expenses, and manufacturing overhead.
d.raw materials used, direct labor, and cost of goods sold.
18.The cost
of goods manufactured for a fiscal period is reported on:
a. both the statement of
cost of goods manufactured and the income statement.
b. both the statement of the cost of goods manufactured and the balance sheet.
c.both the income statement and the balance sheet.
d.the statement of cost of goods manufactured only.
19.The
balance sheet of a manufacturing business shows:
a.the finished goods inventory and the cost of goods manufactured.
b.the cost of goods manufactured rather than inventory figures.
c.a single inventory figure-the amount of the finished goods inventory.
d.the raw materials
inventory, the work in process inventory, and the finished goods inventory.
20.The Indirect Labor account is closed by crediting it and debiting:
a. Wages Payable.
b. income Summary.
c.Manufacturing
Summary.
d.Wages Expense.
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