Managerial Accounting

Which of the following describes process costing?

• Low cost per unit & Consume different resources

• Low cost per unit & Consume same resources

• Hight cost per unit & Consume different resources

• High cost per unit & Consume same resources

What type of accounts are raw materials, work in process and finished goods?

• Expense

• Retained Earnings

• Inventory

• Account payable

Which of the following describes absorption costing?

• Prepared for internal decision making purposes

• Prepared generally for external reporting purposes

• Contributional format and classified according to behaviour

• Only Direct materials, Direct labour and variable manufacturing overhead treated as product cost

Which best describes cash flows in service companies

• Inventory for WIP

• Inventory for finished goods

• Inventory for both WIP and finished goods

• No inventory for WIP or finished goods

At the beginning of the year, Ventra expected to produce 10,000 jewelry boxes and estimated overhead costs of $40,000. Actual overhead costs ended up being $45,000 and Ventra only produced 9,000 jewelry boxes. Based on the information given, what is the predetermined overhead rate?

• $4.00

• $4.50

• $4.44

• $5.00

If more overhead has been applied than was actually incurred, the ending Manufacturing Overhead account balance represents the amount of [blank​ ] overhead.

• Underapplied

• Overapplied

How do you find direct materials

• Beg raw materials + Purchases + End raw materials

• Beg raw materials + Purchases - End raw materials

• Beg raw materials - Purchases + End raw materials

• Beg WIP + Total manufacturing cost for the period - End WIP

Variable Costing does not include the following

• Direct materials

• Variable manufacturing overhead

• Direct Labour

• Fixed manufacturing overhead

Company A assigns manufacturing overhead to WIP inventory using direct labor cost.

Actual labor cost : 200 000

Estimated labor cost : 180 000

Estimated overhead : 75 000

Actual overhead : 72 000

Whats is the predetermined overhead rate?

• 0.375

• 0.417

• 0.4

• 0.36

The inventory accounts for a manufacturing company would NOT include:

• Raw materials

• Finished goods

• Work-in-process

• Manufacturing overhead