Question

Instructions: Designate the best answer for each of the following questions. 1. A debit balance in the Manufacturing Overhead account at the end of an interim month means that a. the balance should be reported as an asset in the monthly balance sheet. b. corrective action by management is necessary. c. overhead has been underapplied d. cost of goods sold should be credited on the monthly income statement. 2. In a job order cost system, which of the following accounts is not a control account? a. Raw Materials Inventory b. Factory Labor c. Finished Goods Inventory d. Manufacturing Overhead 3. In the current assets section of the balance sheet, in which order are manufacturing inventories listed? a. Raw materials, work in process, finished goods b. Finished goods, work in process, raw materials c. Work in process, finished goods, raw materials d. Finished goods, raw materials, work in process 4. Which one of the following costs is a component of both manufacturing overhead and total manufacturing costs? a. Direct labor b. Direct materials c. Selling and administrative costs d. Factory utilities 5. Manufacturing costs are typically classified as a. product costs or period costs. b. direct materials or direct labor. c. direct materials, direct labor, or manufacturing overhead. d. direct materials, direct labor, or selling and administrative. 6. What are the functions of management in an organization? a Planning, controlling, and decision making b. Planning, directing, and controlling c. Directing, controlling, and decision making d. Directing, planning, and decision making 7. Which one of the following is not one of the major activities of managerial accounting? a. Providing a basis for controlling costs by comparing actual results with planned objectives b. Preparing financial statements designed primarily for stockholders and creditors C. Preparing internal reports for management d. Determining the behavior of costs as activity levels change 8. Which of the following would most likely use a job order cost system? a. Cement manufacturer b. Cat food manufacturer c. Specialty printing company d. Automobile manufacturer

Answer 1

1) A debit balance in the Manufacturing Overhead account at the end of an interim month means that:

   Answer : C)overhead has been underapplied

2) in a job cost system which of the following accounts is not a control account

Answer: B)Factory Labour

3) in the current assets section of the balance sheet in which order are manufacturing inventories listed

Answer: D)finished goods, raw materials, work in progress

4)which one of the following costs is a component of both manufacturing overhead and total manufacturing costs

Answer : D)factory utilities

5) Manufacturing costs are typically classified as

Answer : C)direct materials direct labour or manufacturing overhead

6) what are the functions of management in an organisation

Answer: B)planning, directing and controlling

7)which one of the following is not one of the major activities of managerial accounting

Answer: B)preparing financial statements designed primarily for stockholders and creditors

8)which of the following would most likely use a job order cost system

Answer :C)specialty printing company