Chapter 1 Quiz

School: Eastern Gateway Community College - Course: ACCOUNTING ACC121 - Subject: Accounting

Chapter 1 Quiz 1.Below, there will be a cost incurred by an ACB Electrical Appliance Manufacturing. Correctly match the classification type with the cost provided. Cost of aluminum used for toasters a.Direct Materials 2.The schedule of cost of goods manufactured is an analysis of which account? a.Finished Goods 3.Blue Sheep Swimming Hole has the following costs: Direct materials: $3,507,000 Direct Labor: $1,200,000 Variable overhead: $700,000 Fixed overhead: $250,000 Selling expenses: $890,000 General expenses: $400,500 Administrative expenses: $500,000 What are the company's total manufacturing costs? a.$5,657,000 i.the manufacturing costs directly associated with production: direct materials, direct labor, variable overhead, and fixed overhead. 3507000+1200000+700000+250000=5657000 4.Managerial accounting is designed for use by: a.Internal users 5.A cost which is directly traceable to a product, activity, or department is a(n): a.The cost of the paper that is given as handouts in the class 6.Below, there will be a cost incurred by an ACB Electrical Appliance Manufacturing. Correctly match the classification type with the cost provided. President's salary a.Administrative 7.Which is selling costs? a.Costs associated with securing and filling customer orders (examples: advertising, sales salaries, depreciation of sales equipment) 8.Direct materials used is: a.One of the three components of total manufacturing costs, defined as the materials available for sale less the ending raw materials inventory. 9.Pocket Umbrella is considering producing a new type of umbrella. This new pocket-sized umbrella would fit into a coat or pocket purse. Correctly match the choices to the cost provided. Cost of labor to manufacture metal umbrella shaft. a.Product Costs

10. Below, there will be a cost incurred by an ACB Electrical Appliance Manufacturing. Correctly match the classification type with the cost provided. Wages of assembly-line workers a.Direct Labor 11. Which of the following is a difference between financial accounting and managerial accounting? a.Financial accounting has a historical orientation, while managerial accounting emphasizes on the future. 12. In the production of tires, rubber is most likely: a.A direct cost and variable cost. 13. Pocket Umbrella in considering producing a new type of umbrella. This new pocket-sized umbrella would fit into a coat or pocket purse. Correctly match the choices to the cost provided. a.Cost of travel expenses for sales staff 14. Identify the formula to calculate Direct Materials used: a.Beginning Raw Materials + Raw Material Purchases - Ending Raw Materials Inventory - Indirect Materials Used 15. Pocket Umbrella in considering producing a new type of umbrella. This new pocket-sized umbrella would fit into a coat or pocket purse. Correctly match the choices to the cost provided. Cost of factory accountant's salary a.Product Cost i.When an accountant's salary is directly tied to the factory, his/her salary is considered a product cost. 16. Below, there will be a cost incurred by an ACB Electrical Appliance Manufacturing. Correctly match the classification type with the cost provided. Cost of electrical wire used in making appliances a.Manufacturing Overhead 17. Which is variable Cost? a.Changes in proportion to changes in volume or activity (no change per unit)