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3657600000Exam 1 Sample QuestionsWhat are the differences between financial and managerial accounting? (Select ALL that apply)Managerial accounting must be in accordance to GAAP, while financial does not. Managerial accounting supplies information to decision makers within the company, while financial reports to external users, such as investors and creditors. Managerial accounting info must be relevant, while financial accounting needs to be accurate and timely. Managerial accountants require a CPA license, while financial accountants need a CMA license. Which type of company includes raw materials, work-in-process materials, and finished goods in their inventory account?Service companyMerchandising companyManufacturing companyAll of the aboveIn the case of Starbucks Corporation, which of the following would be considered a cost object? A single retail locationA cup of coffeeA coffee beanA frappuccino machineWhich of the following makes up the Manufacturing Overhead costs?Direct materials, direct labor, and product costsIndirect materials, indirect labor, and other indirect costs. Period costs, product costs, and inventoriable costs. Prime costs, conversion costs, and indirect costs. Which of the following is true about variable costs?They are independent of the units produced. The per unit variable cost increases as the number of units increases. Rent is an example of variable costs.The total variable cost increases as the number of units increases. Use the following data numbers of Tesla Inc. to answer this question. Raw materials, Dec 31: $150,000Building rent: $200,000Marketing expenses: $500,000Factory Overhead: $1,000,000Office supplies: $50,000Calculate the total Period Costs of Tesla Inc. $750,000$1,900,000$250,000$700,000What is the difference between gross profit and net income? Net income is calculated on the income statement while gross profit is a calculated on the balance sheet. Gross profit measures the profit after deducting the cost of goods sold while net income measures the profit after deducting expenses from revenues. Gross profit is the absolute bottom-line while net income is calculated at a different stage in the income statement. There is no difference. The terms are used interchangeably. Use the data numbers below for Inc. to answer the following questions.Direct (Raw) Materials Used: $50,000Beginning WIP: $100,000Conversion Costs(DL + MOH): $150,000Ending WIP: $40,000Beginning Finished Goods: $70,000Ending Finished Goods: $30,000Find Cost of Goods Manufactured for Amazon: _________________________Find Cost of Goods Sold for Amazon: __________________________Macy’s Inc has monthly fixed costs of $100,000, while its variable costs are $5.20 per unit. If the sales price of a unit is $19.95 and Macy’s sells 50,000 units, the company’s total variable costs will be $5.20$19,231$997,500$260,000Which corporation probably uses process costing? Kay Jewelers. Kanes Furniture Wrigley CompanyMorgan & Morgan LawWhy do we allocate overhead? Overhead consists of many indirect costs, that can’t be directly traced to a product, therefore they must be allocated appropriately. We don’t allocate it, we trace it directly to the product. Overhead consists of many direct costs, that can’t be directly traced to a product, therefore they must be allocated appropriately. Use the data listed below to answer the following questions.Estimated Overhead Budget for 2019: $1,500,000Actual Overhead for 2019: $1,250,000Estimated DL hours for 2019: 15,000Actual DL hours for 2019: 10,000If the company uses Direct Labor hours as a basis for allocating overhead, what is the predetermined overhead rate?$125$100$150$83What is the applied overhead expense for 2019?$1,250,000$1,500,000$1,000,000$2,250,000If the applied overhead for a company in 2019 totals $2,000,000 and the estimated overhead for a company in 2019 is $2,500,000; which of the following is correct?$500,000 overapplied$2,000,000 overapplied$2,500,000 underapplied$500,000 underappliedTest? 1 Question Distribution *?CH 1CH 2CH 3TotalMatching2002True False0325Multiple Choice - Conceptual**213116Multiple Choice - Problems06814Fill in the Blank Problem+0808Select all that apply0325??? Total4331350 ................
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