Introduction to Managerial Accounting Canadian 5th Edition By Brewer-Test Bank

Test Bank For Introduction to Managerial Accounting Canadian 5th Edition By Brewer

ISBN-10:1259105709 , ISBN-13:978-1259105708

MULTIPLE CHOICE. Choose the one varied that biggest completes the assertion or options the question.

Reference: 02-10
Charlie’s Chocolate Manufacturing facility manufactures chocolate bars and ships them straight to wholesalers and retailers all through the nation. The company has two product strains: milk chocolate bars and chocolate coated almonds. Classify the following agency’s payments if the charge object is a single product line (each milk chocolate bars or chocolate coated almonds).

1) Selling advertising and marketing marketing campaign for Charlie’s Chocolate Manufacturing facility, no specific merchandise have been 1) talked about throughout the advertising and marketing marketing campaign.

A) Indirect product value.

C) Indirect interval value.

Reply: C Clarification: A)

B) C) D)

B) Direct interval value. D) Direct product value.

2) A producing agency prepays its insurance coverage protection safety for a three-year interval. The 2) premium for the three years is $2,700 and is paid at first of the first yr.
Eighty p.c of the premium applies to manufacturing operations and 20% applies to selling and administrative actions. What portions wants to be thought-about product and

interval costs respectively for the first yr of safety?

a. b. c. d.

A) various a.

Reply: D Clarification:

Product

$2,700 $2,160 $1,440 $ 720

A) B) C) D)

Interval

$0 $540 $360 $180

B) various b.

C) various c.

D) various d.

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3) An opportunity value is: 3) A) the potential revenue forgone by deciding on one varied instead of 1 different.

B) the excellence in full costs which ends from deciding on one varied instead of 1 different.

C) a value which may be saved by not adopting one other.
D) a value which may be shifted to the long term with little or no impression on current

operations.

Reply: A Clarification: A)

B) C) D)

4) Inexperienced Agency’s costs for the month of August have been as follows: direct provides, 4) $27,000; direct labour, $34,000; product sales salaries, $14,000; indirect labour, $10,000;
indirect provides, $15,000; fundamental firm administrative value, $12,000; taxes on manufacturing facility, $2,000; and rent on manufacturing unit, $17,000. The beginning work in

course of inventory was $16,000 and the ending work in course of inventory was $9,000. What was the worth of things manufactured for the month?

A) $138,000.

Reply: B Clarification: A)

B) C) D)

B) $112,000.

C) $105,000.

D) $132,000.

5) Micro Laptop computer Agency has prepare a toll-free telephone line for purchaser inquiries 5) relating to laptop computer {{hardware}} produced by the company. The worth of this toll-free line
may be categorized as which of the following?

A) Manufacturing overhead.

C) Product value.

Reply: B Clarification: A)

B) C) D)

B) Interval value. D) Direct labour.

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Reference: 02-11
Frosting Corp. has provided the following relating to the most recent month (August 31, 2016) of operations, for his or her foremost product, cupcakes

Baker’s salaries
Accomplished objects inventory, beginning Accomplished objects inventory, ending Frequent & administrative payments Indirect provides
Manufacturing Supervisor, Wage Purchases of raw provides
Raw provides inventory, ending Raw provides inventory, beginning Rent on manufacturing manufacturing unit
Rent, retail retailer
Product sales
Utilities on manufacturing manufacturing unit Utilities, retail retailer
Wages, retail workers
WIP inventory, beginning
WIP inventory, ending

20,000 18,000 20,000 20,000 17,500 21,000 28,000 19,000 18,000 19,000 18,000

243,000 17,500 17,000 20,000 19,500 21,500

6) What was the worth of things purchased for the interval?

6)

A) $120,000

Reply: B Clarification: A)

B) C) D)

B) $118,000

C) $123,000

D) $121,000

7) For a producing agency, which of the following is an occasion of a interval fairly 7) than a product value?

A) Wages of machine operators.

C) Wages of salespersons.

Reply: C Clarification: A)

B) C) D)

B) Insurance coverage protection on manufacturing unit instruments.
D) Depreciation of producing unit instruments.

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8) Which of the following would NOT be dealt with as a product value for exterior financial 8) reporting features?

A) Salaries of producing unit workers.

C) Depreciation on a producing unit setting up.

Reply: B Clarification: A)

B) C) D)

B) Selling payments.
D) Indirect labour throughout the manufacturing unit.

Reference: 02-10
Charlie’s Chocolate Manufacturing facility manufactures chocolate bars and ships them straight to wholesalers and retailers all through the nation. The company has two product strains: milk chocolate bars and chocolate coated almonds. Classify the following agency’s payments if the charge object is a single product line (each milk chocolate bars or chocolate coated almonds).

9) Salaries for milk chocolate bars manufacturing line workers 9)

A) Indirect product value.

C) Direct interval value.

Reply: B Clarification: A)

B) C) D)

B) Direct product value. D) Indirect interval value.

10) Conversion value consists of which of the following? 10) A) Direct provides and direct labour costs.

B) Direct labour value.
C) Direct labour and manufacturing overhead costs. D) Manufacturing overhead value.

Reply: C Clarification: A)

B) C) D)