Question 1

Flexibility of practice when applied to managerial accounting means that

Accepted Answer

A) The information must be presented in electronic format so that it is easily changed. 
B) Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for. 
C) The managerial accountants need to be on call twenty-four hours a day. 
D) The design of a company's managerial accounting system largely depends on the nature of the business and the arrangement of the internal operations of the company. 
E) Managers must be flexible with information provided in varying forms and using inconsistent measures. 
A) The information must be presented in electronic format so that it is easily changed. 
B) Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for. 
C) The managerial accountants need to be on call twenty-four hours a day. 
D) The design of a company's managerial accounting system largely depends on the nature of the business and the arrangement of the internal operations of the company. 
E) Managers must be flexible with information provided in varying forms and using inconsistent measures.

Question 2

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured was $147,000; and the December 31 finished goods inventory was $77,000.What is the cost of goods sold for that year?

Accepted Answer

The answer of A manufacturing company's finished goods inventory on...

Question 3

The potential benefit lost by taking a specific action from two or more choices is an _____________________________.

Accepted Answer

The answer of The potential benefit lost by taking a...

Question 4

The three major cost components of a manufactured product are:

Accepted Answer

A) Marketing, selling, and administrative costs. 
B) Indirect labor, indirect materials, and miscellaneous factory expenses. 
C) Direct materials, direct labor, and factory overhead. 
D) Differential costs, opportunity costs, and sunk costs. 
E) General, selling, and administrative costs. 
A) Marketing, selling, and administrative costs. 
B) Indirect labor, indirect materials, and miscellaneous factory expenses. 
C) Direct materials, direct labor, and factory overhead. 
D) Differential costs, opportunity costs, and sunk costs. 
E) General, selling, and administrative costs.

Question 5

Calculate Cost of Goods Sold for the following two companies:

Accepted Answer

The answer of Calculate Cost of Goods Sold for the...

Question 6

____________________ is the process of monitoring plans and evaluating an organization's activities and employees.

Accepted Answer

The answer of ____________________ is the process of monitoring plans...

Question 7

The management concept of customer orientation causes a company to spend large amounts on advertising to convince customers to buy the company's standard products.

Accepted Answer

A) True 
 B)False

Question 8

The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year:
Beginning Ending
Raw materials inventory……………………… $ 57,000 $60,000
Finished goods………………………………... 68,000 60,000
The raw materials used in manufacturing during the year totaled $118,000.Raw materials purchased during the year amount to:

Accepted Answer

A) $107,000. 
B) $115,000. 
C) $118,000. 
D) $121,000 
E) $126,000. 
A) $107,000. 
B) $115,000. 
C) $118,000. 
D) $121,000 
E) $126,000.

Question 9

If beginning and ending goods in process inventories are $5,000 and $15,000,respectively,and cost of goods manufactured is $170,000,what is the total manufacturing cost for the period?

Accepted Answer

A) $180,000. 
B) $155,000. 
C) $160,000. 
D) $175,000. 
E) $165,000. 
A) $180,000. 
B) $155,000. 
C) $160,000. 
D) $175,000. 
E) $165,000.

Question 10

A manufacturer's cost of goods manufactured is the sum of direct materials,direct labor,and factory overhead costs incurred in producing products.

Accepted Answer

A) True 
 B)False

Question 11

Managerial accounting provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following represents the correct formula for calculating raw materials inventory turnover for a manufacturer?

Accepted Answer

A) Raw materials purchased/Average raw materials inventory. 
B) Average raw materials inventory/Raw materials used. 
C) Raw materials used/Average raw materials inventory. 
D) Ending raw materials/Raw materials used * 365. 
E) Raw materials used/Beginning raw materials inventory *365. 
A) Raw materials purchased/Average raw materials inventory. 
B) Average raw materials inventory/Raw materials used. 
C) Raw materials used/Average raw materials inventory. 
D) Ending raw materials/Raw materials used * 365. 
E) Raw materials used/Beginning raw materials inventory *365.

Question 13

Match the following terms to the appropriate definitions.

-Reveals how many times a company sells its raw materials inventory during a period.

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 14

Match between columns
                        Premises: Expenditures incurred in the process of converting raw materials to finished products; include direct labor and factory overhead.
Costs that do not change in total with changes in the volume of activity.
Costs that are incurred for the benefit of more than one cost object.
Manufacturing expenditures that cannot be separately or readily traced to finished goods.
Expenditures directly associated with the manufacture of finished products; include direct materials and direct labor.
Costs that have already been incurred and cannot be avoided or changed.
The potential benefit lost by choosing a specific action from two or more alternatives.
Expenditures necessary and integral to finished products.
Costs that flow directly to the current income statement as expenses.
Costs that change in proportion to changes in volume of activity.

Accepted Answer

The Answer of Variable costs and Prime costs and Sunk is...

Question 15

Match the following terms to the appropriate definitions.

-An activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.

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 16

A ___________________ cost has already been incurred and cannot be avoided or changed,so it irrelevant to decision making.

Accepted Answer

The answer of A ___________________ cost has already been incurred...

Question 17

The cost of partially completed products is included in the balance of the Goods in Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 18

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on drivers or indicators of future financial performance.

Accepted Answer

A) True 
 B)False

Question 19

Factory overhead costs normally include all of the following except:

Accepted Answer

A) Indirect labor costs. 
B) Indirect material costs. 
C) Selling costs. 
D) Machinery oil. 
E) Factory rent. 
A) Indirect labor costs. 
B) Indirect material costs. 
C) Selling costs. 
D) Machinery oil. 
E) Factory rent.

Question 20

The Institute of Management Accountants Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

Accepted Answer

A) True 
 B)False

Exam 18: Managerial Accounting Concepts and Principles

Flexibility of practice when applied to managerial accounting means that

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured was $147,000; and the December 31 finished goods inventory was $77,000.What is the cost of goods sold for that year?

The potential benefit lost by taking a specific action from two or more choices is an _____________________________.

The three major cost components of a manufactured product are:

Calculate Cost of Goods Sold for the following two companies:

____________________ is the process of monitoring plans and evaluating an organization's activities and employees.

The management concept of customer orientation causes a company to spend large amounts on advertising to convince customers to buy the company's standard products.

If beginning and ending goods in process inventories are $5,000 and $15,000,respectively,and cost of goods manufactured is $170,000,what is the total manufacturing cost for the period?

A manufacturer's cost of goods manufactured is the sum of direct materials,direct labor,and factory overhead costs incurred in producing products.

Managerial accounting provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Which of the following represents the correct formula for calculating raw materials inventory turnover for a manufacturer?

Match the following terms to the appropriate definitions. -Reveals how many times a company sells its raw materials inventory during a period.

Match the following terms to the appropriate definitions. -An activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.

A ___________________ cost has already been incurred and cannot be avoided or changed,so it irrelevant to decision making.

The cost of partially completed products is included in the balance of the Goods in Process Inventory account.

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on drivers or indicators of future financial performance.

Factory overhead costs normally include all of the following except:

The Institute of Management Accountants Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

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