Question 1

List the four goals of an internal control system.

Accepted Answer

An internal control system is the policies and procedures management used to a)encourage adherence to company policies,b)promote efficient operations,c)ensure reliable accounting,and d)protect assets.

Question 2

For each item shown below,classify it as a product cost or a period cost,by placing an X in the appropriate column.For each item that is a product cost,also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product.

Accepted Answer

The answer of For each item shown below,classify it as...

Question 3

Raw materials inventory includes only direct materials.

Accepted Answer

A) True 
 B)False  False

Question 4

Herren,Inc.reported the following data regarding costs and inventories for the current year:
 beginning goods-in-process inventory,$4,000; beginning finished goods inventory,$2,000; cost of goods manufactured,$11,500; operating expenses,$3,000; ending finished goods inventory,$1,000; ending goods-in-process inventory,$1,500.Cost of goods sold for Herren,Inc.equals ____________________.

Accepted Answer

Beginning Finished Goods Inve

Question 5

Match the following terms to the appropriate definitions.

-Products in the process of being manufactured but not yet complete.

Accepted Answer

A) Managerial accounting 
B) Continuous improvement 
C) Raw materials inventory 
D) Customer orientation 
E) Just-in-time manufacturing
F)Goods in process inventory
G)Lean business model
H)Balanced scorecard
I)Prime costs
J)Raw materials inventory turnover 
A) Managerial accounting 
B) Continuous improvement 
C) Raw materials inventory 
D) Customer orientation 
E) Just-in-time manufacturing
F)Goods in process inventory
G)Lean business model
H)Balanced scorecard
I)Prime costs
J)Raw materials inventory turnover

Question 6

Information for Reedy Manufacturing is presented below.Compute both the cost of goods manufactured and the cost of goods sold for Reedy Manufacturing.

Accepted Answer

The answer of Information for Reedy Manufacturing is presented below.Compute...

Question 7

Use the following information to compute the cost of goods manufactured:

Accepted Answer

A) $36,650. 
B) $30,950. 
C) $30,650. 
D) $30,350. 
E) $31,650. 
A) $36,650. 
B) $30,950. 
C) $30,650. 
D) $30,350. 
E) $31,650.

Question 8

A variable cost changes in proportion to changes in the volume in activity.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is true regarding product and period costs?

Accepted Answer

A) Office salaries expense is a product cost and factory maintenance is a period cost. 
B) Office rent is a product cost and supervisors' salaries expense is a period cost. 
C) Factory rent is a product cost and advertising expense is a period cost. 
D) Delivery expense is a product cost and indirect materials is a period cost. 
E) Sales commissions is a product cost and indirect labor is a period cost. 
A) Office salaries expense is a product cost and factory maintenance is a period cost. 
B) Office rent is a product cost and supervisors' salaries expense is a period cost. 
C) Factory rent is a product cost and advertising expense is a period cost. 
D) Delivery expense is a product cost and indirect materials is a period cost. 
E) Sales commissions is a product cost and indirect labor is a period cost.

Question 10

The focus of managerial accounting is on providing ________________ reports while the focus of financial accounting is on providing _____________ reports.

Accepted Answer

answers m

Question 11

A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:

Accepted Answer

A) Materiality statement. 
B) Managerial statement. 
C) Manufacturing statement. 
D) Merchandise statement. 
E) Monetary statement. 
A) Materiality statement. 
B) Managerial statement. 
C) Manufacturing statement. 
D) Merchandise statement. 
E) Monetary statement.

Question 12

Expenditures directly associated with the manufacture of finished goods that include direct materials and direct labor are _____________________ costs.

Accepted Answer

The answer of Expenditures directly associated with the manufacture of...

Question 13

_____________________ inventory consists of goods a company acquires to use in making products.

Accepted Answer

The answer of _____________________ inventory consists of goods a company...

Question 14

Costs that flow directly to the current income statement are called:

Accepted Answer

A) Period costs. 
B) Product costs. 
C) General costs. 
D) Balance sheet costs. 
E) Capitalized costs. 
A) Period costs. 
B) Product costs. 
C) General costs. 
D) Balance sheet costs. 
E) Capitalized costs.

Question 15

A fixed cost:

Accepted Answer

A) Requires the future outlay of cash and is relevant for future decision making. 
B) Does not change with changes in the volume of activity within the relevant range. 
C) Is directly traceable to a cost object. 
D) Changes with changes in the volume of activity within the relevant range. 
E) Has already been incurred and cannot be avoided so it is irrelevant for decision making. 
A) Requires the future outlay of cash and is relevant for future decision making. 
B) Does not change with changes in the volume of activity within the relevant range. 
C) Is directly traceable to a cost object. 
D) Changes with changes in the volume of activity within the relevant range. 
E) Has already been incurred and cannot be avoided so it is irrelevant for decision making.

Question 16

Policies and procedures used by management to monitor and control business activities are known as ____________________________.

Accepted Answer

The answer of Policies and procedures used by management to...

Question 17

Product costs:

Accepted Answer

A) Are expenditures necessary and integral to finished products. 
B) Are expenditures identified more with a time period rather than with finished products. 
C) Include selling and administrative expenses. 
D) Are costs that vary with the volume of activity. 
E) Are costs that do not vary with the volume of activity. 
A) Are expenditures necessary and integral to finished products. 
B) Are expenditures identified more with a time period rather than with finished products. 
C) Include selling and administrative expenses. 
D) Are costs that vary with the volume of activity. 
E) Are costs that do not vary with the volume of activity.

Question 18

____________________ inventory consists of completed products ready for sale by a manufacturer.

Accepted Answer

The answer of ____________________ inventory consists of completed products ready...

Question 19

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 20

Adopting a lean business model should have no effect on cost in a modern manufacturing environment.

Accepted Answer

A) True 
 B)False

Exam 18: Managerial Accounting Concepts and Principles

List the four goals of an internal control system.

For each item shown below,classify it as a product cost or a period cost,by placing an X in the appropriate column.For each item that is a product cost,also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product.

Raw materials inventory includes only direct materials.

Match the following terms to the appropriate definitions. -Products in the process of being manufactured but not yet complete.

Information for Reedy Manufacturing is presented below.Compute both the cost of goods manufactured and the cost of goods sold for Reedy Manufacturing.

Use the following information to compute the cost of goods manufactured:

A variable cost changes in proportion to changes in the volume in activity.

Which of the following statements is true regarding product and period costs?

The focus of managerial accounting is on providing ________________ reports while the focus of financial accounting is on providing _____________ reports.

A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:

Expenditures directly associated with the manufacture of finished goods that include direct materials and direct labor are _____________________ costs.

_____________________ inventory consists of goods a company acquires to use in making products.

Costs that flow directly to the current income statement are called:

A fixed cost:

Policies and procedures used by management to monitor and control business activities are known as ____________________________.

Product costs:

____________________ inventory consists of completed products ready for sale by a manufacturer.

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Adopting a lean business model should have no effect on cost in a modern manufacturing environment.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

Filters

The focus of managerial accounting is on providing ____ reports while the focus of financial accounting is on providing _ reports.