Which of the following is most likely a service company?

Select one:
a. Car Manufacturer
b. None of these answers
c.Fruit Seller
d. Law Firm
e. Baker

answer: Law Firm

Q2: Goods that have been started in the manufacturing process but are not yet complete are
included in:
Select one:
a. The Raw Materials Inventory Account
b. None of these answers
c. The Work In Process Inventory Account
d. The Finished Goods Inventory Account
e.
The Cost of Goods Sold Account
Answer: The Work In Process Inventory Account

Q3: Which of the following is true of service companies?

Select one:
a.Service companies modify and resell products they buy from manufacturers.
b. Service companies carry no inventories of products for sale.
c. None of these answers
d. All of service companies' costs are product costs.
e. Revenues of service companies are only recorded on cash receipt.

Answer: Service companies carry no inventories of products for sale.

Q4: The Primary Users of Management Accounting information are: 

Select one:
a. External - bankers
b. Internal - the company's management and employees
c. None of these answers
d. External - investors
e. External - government

answer: Internal - the company's management and employees

q5: You overhear someone saying: 

"Management Accounting helps in planning and controlling operations"
Do you think this statement is: 

Answer: true
 Q6: Product costs are expensed:
Select one:
a. When the products are consumed or sold.
b.When the products are transferred to Work-in-Process Inventory account.
c. when the market value of products goes above the recorded value
d. At the end of the accounting period they are incurred in.
e. None of these answers

answer: When the products are consumed or sold.

Q7: Raw Materials Inventory would be most likely found in which type of company: 
Select one:
a. Service Company
b. None of these answers
c. Manufacturing Company
d. Merchandising Company

answer: Manufacturing Company

q8: Focusing on the level of detail in reporting, 

we can say that Management Accounting 
Select one:
a. Provides summary information on the overall company once or twice a year
b. Provides detailed information on parts of the company on a daily or weekly basis

answer: Provides detailed information on parts of the company on a daily or weekly basis

q9: Which type of company will generally not have Inventory

Select one:
a. Manufactuing Company
b. Service Company
c. Merchandising Company
d. None of these answers

answer: Service Company

q10: Noting that GAAP = Generally Accepted Accounting Principles (GAAP), 

we can say that Management Accounting 
Select one:
a. Is not required to follow GAAP
b. Is required to follow GAAP

answer: Is not required to follow GAAP

 q11: Period costs are generally
Select one:
a. Part of inventory
b. Expensed when goods are returned
c. Expensed when incurred
d. None of these answers
e. Expensed when goods are sold

answer: Expensed when incurred

q12:
If:
Opening (i.e., Beginning)  Raw Materials Inventory = 400
Purchases of Raw Materials= 600
Closing (i.e., Ending) Raw Materials Inventory = 300
What is the Cost of Raw Materials Used?
a. 300
b. 700
c. None of these answers
d. 1000
e. Zero (i.e., Nil
Answer: 700

Q13:
If a manufacturing company’s unit product cost is $100,
and
4,000 items were sold,
What is the cost of goods sold?
a. 300,000
b. None of these answers
c. 540,000
d. 450,000
e. 400,000
answer: 400,000

q14:
If a service company’s total costs are $60,000,
and
it performed 5,000 services,
What is the unit cost per service?
Answer: 12
 Q15:
If:
A manufacturing company’s cost of goods manufactured is $400,000,
and 20,000 units were produced,
what is the unit product cost?
Answer: 20

Q16:
Suppose: 
Raw Materials Inventory, January 1   $ 500
Raw Materials Inventory, December 31   $700
Work-in-Process Inventory, January 1   $120
Work-in-Process Inventory, December 31   $160
Finished Goods Inventory, January 1   $800
Finished Goods Inventory, December 31   $700
Raw Materials Purchased, including Freight In   $400
Direct Labor   $400
Manufacturing Overhead   $300
What is the Cost of Goods Manufactured? 

a. 860
b. None of these answers
c. 960
d. 900
e. 800
answer: 860

q17:
XYZ Washing Company washed 70 cars offices and incurred costs of $4,900
What was the cost to clean each car?
a. 70
b. None of these answers
c. 700
d. 7
e. 10
answer: 70
 q18:
If:
Opening (i.e., Beginning)  Work in Process = 400
Direct Materials Cost= 500
Direct Labour Cost = 900
Manufacturing Overhead = 200
Closing  (i.e., Ending)  Work in Process = 300
What is the Cost of Goods Manufactured?
a. 2000
b. None of these answers
c. 2300
d. 1700
e. 1300
answer: 1700

q19:
Suppose the following information is available:
Plant Insurance 200
Indirect Materials 300
Direct Materials 100
Indirect Labor 400
Direct Labor 300
Depreciation Office Equipment 200
Depreciation Plant Machinery 500
What is the Total Manufacturing Overhead?  
a. 1600
b. 2100
c. 700
d. 1400
e. None of these answers
answer: 1400

q20:
If a merchandising company’s cost of goods sold is $800,000,
and
100,000 items were sold,
What is the average unit cost?
a. 10
b. 14.5
c. 8
d. 6
e. None of these answers
answer: 8
q21:
 If:
Opening (i.e., Beginning)  Finished Goods Inventory = 500
Purchases of Finished Goods = 900
Closing (i.e., Ending) Finished Goods Inventory = 800
What is the Cost of Goods Sold?

a. None of these answers

b. 600
c. 300
d. 1000
e. Zero (i.e., Nil)
answer: 600