Exam 16: Introduction to Management Accounting

A service company's income statement does NOT include cost of goods sold.

Managerial accounting includes the planning function. Which of the following items would be part of the planning function of a business's managerial accounting?

Accounting, legal and administrative costs are product costs.

Merchandising businesses resell goods which they purchase from a producer.

For a manufacturing business, which of the following would be considered a direct labor cost?

For a manufacturing business, which of the following would be included in manufacturing overhead?

Budget preparation is a part of the planning process.

The costs of indirect materials cannot easily be traced to the manufactured product and is therefore a component of manufacturing overhead.

Which of the following is NOT an advantage of just-in-time inventory management?

Which of the following statements about financial accounting is CORRECT?

Management is accountable to various government bodies in which of the following ways?

Arturo Manufacturing Company provided the following information for the year 2012: Beginning balance-work in process inventory \ 12,000 Ending balance-work in process inventory \ 28,000 Beginning balance-direct materials inventory \ 42,000 Ending balance-direct materials inventory \ 30,000 Purchases-direct materials \ 180,000 Direct labor \ 235,000 Indirect materials \ 23,500 Indirect labor \ 9,500 Depreciation on factory plant \& equipment \ 12,000 Plant utilities \& insurance \ 135,000 - Please refer to the T-accounts below which show the beginning balances for the year. Use the T-accounts to record the transactions for the year. What is the ending balance in the finished goods inventory?

Which of the following is NOT one of the key standards of ethical practice published by the IMA?

The wages and benefits of the assembly line workers are product costs.

Harrison Company reports the following cost information for August: Cost of goods manufactured \ 135,800 Finished goods inventory, Aug. 1 30,200 Finished goods inventory, Aug. 31 35,300 Work in process inventory, Aug. 1 22,500 Work in process inventory, Aug. 31 18,500 Direct materials used 25,300 - What is the amount of direct labor incurred by Harrison Company in August?

Increased global competition has resulted in many companies moving their operations to other countries to be closer to new markets.

The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012. Purchases \ 126,000 Selling and Administrative Expenses 90,000 Merchandise inventory, 1/1/2012 14,000 Merchandise inventory, 12/31/2012 10,000 Sales Revenue 250,000 - What is the profit margin percentage?

For a manufacturing business, which of the following would be considered an inventoriable product cost?

Managerial accounting is focused on which of the following objectives?

The sales manager for Baker Products told the shipping department to ship an order to a customer on the last day of December instead of the previously scheduled shipping date of January 2. This would allow the company to book the sales revenue in the year just ended and boost year-end profit. Although done deliberately to boost income, the action did not misrepresent any facts of the situation, and so it would not be considered unethical.