Question 1

Product costs can be classified as one of three types:
 direct materials,direct labor,or overhead.

Accepted Answer

A) True 
 B)False

Question 2

Using the information below for Talking Toys,Inc.,determine cost of goods manufactured for the year:

Accepted Answer

A) $13,000. 
B) $44,500. 
C) $57,500. 
D) $94,500. 
E) $52,000. 
A) $13,000. 
B) $44,500. 
C) $57,500. 
D) $94,500. 
E) $52,000.

Question 3

A manufacturing company has a beginning finished goods inventory of $14,600,raw material purchases of $18,000,cost of goods manufactured of $32,500,and an ending finished goods inventory of $17,800.The cost of goods sold for this company is:

Accepted Answer

A) $21,200. 
B) $29,300. 
C) $32,500. 
D) $47,100. 
E) $27,600. 
A) $21,200. 
B) $29,300. 
C) $32,500. 
D) $47,100. 
E) $27,600.

Question 4

A _________________ cost does not change in proportion to changes in the volume of activity within the relevant range.

Accepted Answer

The answer of A _________________ cost does not change in...

Question 5

Match between columns
                        Premises: Balanced scorecard
Managerial accounting
Prime costs
Continuous improvement
Raw materials inventory
Customer orientation
Raw materials inventory turnover
Goods in process inventory
Lean business model
Just-in-time manufacturing

Accepted Answer

The Answer of Goods a company acquires to use in is...

Question 6

A manufacturing statement is also known as a schedule or listing of the:

Accepted Answer

A) Raw materials processed. 
B) Factory supplies used. 
C) Cost of goods manufactured. 
D) Total finished goods. 
E) Cost of goods sold. 
A) Raw materials processed. 
B) Factory supplies used. 
C) Cost of goods manufactured. 
D) Total finished goods. 
E) Cost of goods sold.

Question 7

Using the information below for Talking Toys,Inc.,determine the manufacturing costs incurred during the year:

Accepted Answer

A) $13,000. 
B) $44,500. 
C) $57,500. 
D) $94,500. 
E) $89,000. 
A) $13,000. 
B) $44,500. 
C) $57,500. 
D) $94,500. 
E) $89,000.

Question 8

Match the following terms to the appropriate definitions.

-An idea that means that employees understand the changing needs and wants of their customers and align their management and operating practices accordingly.

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 9

____________________ inventory consists of products in the process of being manufactured but not yet complete.

Accepted Answer

goods in p

Question 10

There are many differences between financial and managerial accounting.Identify and explain at least three of these differences.

Accepted Answer

(1)Users and decision makers - Financia

Question 11

An employee is dissatisfied with the resolution of an ethical conflict at his place of employment.According to the Institute of Management Accountants,the employee's next step should be to

Accepted Answer

A) contact the IMA. 
B) contact the next level of management who is not involved in the ethical conflict. 
C) make the president of the company aware of the ethical conflict. 
D) report the incident to the State Board of Accountancy. 
E) resign from the company. 
A) contact the IMA. 
B) contact the next level of management who is not involved in the ethical conflict. 
C) make the president of the company aware of the ethical conflict. 
D) report the incident to the State Board of Accountancy. 
E) resign from the company.

Question 12

A _________________ system means that a company acquires or produces inventory only when needed.

Accepted Answer

just-in-ti

Question 13

An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:

Accepted Answer

A) Continuous improvement. 
B) Customer orientation. 
C) Just-in-time manufacturing. 
D) Theory of constraints. 
E) Total quality management. 
A) Continuous improvement. 
B) Customer orientation. 
C) Just-in-time manufacturing. 
D) Theory of constraints. 
E) Total quality management.

Question 14

The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is the _____________________.

Accepted Answer

The answer of The model whose goal is to eliminate...

Question 15

Costs that are first assigned to inventory are called:

Accepted Answer

A) Period costs. 
B) Product costs. 
C) General costs. 
D) Administrative costs. 
E) Fixed costs. 
A) Period costs. 
B) Product costs. 
C) General costs. 
D) Administrative costs. 
E) Fixed costs.

Question 16

The manufacturing statement must be prepared monthly as it is a required general-purpose financial statement.

Accepted Answer

A) True 
 B)False

Question 17

Information for the Ace Manufacturing Company follows.Compute the cost of goods manufactured for this company.

Accepted Answer

The answer of Information for the Ace Manufacturing Company follows.Compute...

Question 18

A manufacturer's inventory that is not completely finished is called ________________ .

Accepted Answer

The answer of A manufacturer's inventory that is not completely...

Question 19

Explain what is meant by the "lean business model" and why many businesses have adopted it.

Accepted Answer

The lean business model is a model whose

Question 20

Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.

Accepted Answer

A) True 
 B)False

Exam 18: Managerial Accounting Concepts and Principles

Product costs can be classified as one of three types: direct materials,direct labor,or overhead.

Using the information below for Talking Toys,Inc.,determine cost of goods manufactured for the year:

A manufacturing company has a beginning finished goods inventory of $14,600,raw material purchases of $18,000,cost of goods manufactured of $32,500,and an ending finished goods inventory of $17,800.The cost of goods sold for this company is:

A _________________ cost does not change in proportion to changes in the volume of activity within the relevant range.

A manufacturing statement is also known as a schedule or listing of the:

Using the information below for Talking Toys,Inc.,determine the manufacturing costs incurred during the year:

Match the following terms to the appropriate definitions. -An idea that means that employees understand the changing needs and wants of their customers and align their management and operating practices accordingly.

____________________ inventory consists of products in the process of being manufactured but not yet complete.

There are many differences between financial and managerial accounting.Identify and explain at least three of these differences.

An employee is dissatisfied with the resolution of an ethical conflict at his place of employment.According to the Institute of Management Accountants,the employee's next step should be to

A _________________ system means that a company acquires or produces inventory only when needed.

An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:

The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is the _____________________.

Costs that are first assigned to inventory are called:

The manufacturing statement must be prepared monthly as it is a required general-purpose financial statement.

Information for the Ace Manufacturing Company follows.Compute the cost of goods manufactured for this company.

A manufacturer's inventory that is not completely finished is called ________________ .

Explain what is meant by the "lean business model" and why many businesses have adopted it.

Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.

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

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