1. Does Washburn Guitars have a mathematical formula to compute the cost of each guitar? 1.Yes 2.No

2. Are there accounting tools to help companies such as Washburn Guitars to compute the cost of manufacturing a single product? 1.Yes 2.No

3. Does the management of Washburn Guitars use product costing to help determine suppliers? 1.Yes 2.No

4. Does the management of Washburn Guitars use product costing to help make decisions with regards to changing products? 1.Yes 2.No

5. Should all companies use managerial accounting for manufacturing cost decision- making? 1.Yes 2.No

6. The management process has 4 basic phases. 1.True 2.False

7. An organizational chart in a manufacturing company replaces a chart of accounts. 1.True 2.False

8. Direct labor includes the salaries and wages of assembly-line workers and the office workers. 1.True 2.False

9. Conversion costs are the costs of converting materials into a finished product. 1.True 2.False

10. Period costs include selling and administrative expenses. 1.True 2.False

11. Costs of direct materials and direct labor that do not enter directly into the finished product are recorded as period costs. 1.True 2.False

12. The Materials inventory, Work in process inventory and Finished goods inventory are reported in the current assets section of the balance sheet for a manufacturing company. 1.True 2.False

13. Under managerial accounting, which of the following does not relate to the reports that are prepared? 1.prepared periodically or as needed 2.prepared according to management needs 3.prepared according to GAAP 4.prepared only for internal management

14. The process used by management to develop the company’s objectives (goals) and to translate these objectives into courses of action is called 1.planning 2.directing 3.controlling 4.improving

15. Which of the following is not a manufacturing cost? 1.Direct labor 2.Administrative office salaries 3.Direct materials 4.Factory overhead

16. Which of the following is not considered a period cost? 1.Sales salaries expenses 2.Office supplies expense 3.Direct materials 4.Depreciation expense on the office equipment

17. Prime costs consist of 1.direct labor and administrative labor costs 2.direct labor and factory overhead costs 3.direct materials and direct labor costs 4.direct materials and factory overhead costs

18. Product costs consist of 1.direct materials and direct labor 2.selling and administrative expenses 3.period costs and conversion costs 4.direct materials, direct labor, and factory overhead

19. Which of the following will not appear on the balance sheet of a manufacturing company? 1.Cost of goods manufactured 2.Finished goods inventory 3.Work in Process inventory 4.Materials inventory

20. The cost of completed products that have not yet been sold will be reported in 1.Cost of goods manufactured 2.Materials inventory 3.Work in process inventory 4.Finished goods inventory

21. The cost of goods manufactured for a manufacturing company is computed as follows: 1.Beginning work in process inventory + Total manufacturing costs + Ending work in process inventory 2.Beginning work in process inventory + Total manufacturing costs - Ending work in process inventory 3.Beginning work in process inventory - Total manufacturing costs - Ending work in process inventory 4.Beginning finished goods inventory + Total manufacturing costs + Ending finished goods inventory

22. A manufacturing company computes its cost of goods sold by 1.Beginning finished goods inventory + Cost of goods purchased – Ending finished goods inventory 2.Ending finished goods inventory - Cost of goods manufactured – Beginning finished goods inventory 3.Beginning finished goods inventory - Cost of goods manufactured – Ending finished goods inventory 4.Beginning finished goods inventory + Cost of goods manufactured – Ending finished goods inventory