Exam 18: Introduction to Managerial Accounting

The whole sequence of activities that add value to a company's products and services is called:

Which of the following is most likely a service company?

You did not understand what the term accrual meant and failed to accrue the interest due at the end of the year on the company's bonds. Which of the IMA standards appears to have been violated here?

Which of the following is a product cost?

Goods that have been started in the manufacturing process but are not yet complete are included in:

Financial accounting prepares reports for internal purposes, whereas managerial accounting provides information to external stakeholders.

Which of the following correctly describes the accounting for factory depreciation?

Managerial accounting can be used to calculate costs for service and merchandising companies.

Direct materials and direct labor are prime costs.

Which of the following is one of the key standards of ethical practice published by the IMA?

Given the following information, determine the cost of goods manufactured.

Wages and benefits of assembly line workers are period costs.

Reed Production has provided the following information for the year 2015: During the year, Reed produced 71,020 units of product. Calculate the unit product cost.

Repair and maintenance costs of vehicles used to deliver products to the customers are included in manufacturing overhead.

One of the primary activities of Rex Inc. is to purchase hats from Viva Inc. in Texas and sell them to its customers in Washington for a profit. It is likely that Rex is a:

The primary activity of manufacturing businesses is to purchase goods from a wholesaler and resell them.

Total manufacturing costs to account for during the year minus the ending work-in-process inventory equals the cost of goods manufactured.

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

Manufacturing overhead includes indirect manufacturing costs, such as insurance and depreciation on the factory building.

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