Question 1

Continuous improvement:

Accepted Answer

A) Is a measure of profits. 
B) Is a measure of costs. 
C) Rejects the notion of "good enough." 
D) Is not applicable to most businesses. 
E) Is possible only in service businesses. 
A) Is a measure of profits. 
B) Is a measure of costs. 
C) Rejects the notion of "good enough." 
D) Is not applicable to most businesses. 
E) Is possible only in service businesses.

Question 2

An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:

Accepted Answer

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

Question 3

A management concept that encourages all managers and employees to be in tune with the wants and needs of customers, and which leads to flexible product designs and production processes, is called:

Accepted Answer

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

Question 4

One of the usual differences between financial and managerial accounting is the time dimension of the information reported.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

Under a just-in-time manufacturing system, large quantities of inventory are accumulated throughout the factory to be certain that needed components are available each time that they are needed.

Accepted Answer

A) True 
 B)False

Question 7

The cost of labor that is not clearly associated with specific units or batches of product is called:

Accepted Answer

A) Unspecified labor 
B) Direct labor 
C) Indirect labor 
D) Basic labor 
E) Joint labor 
A) Unspecified labor 
B) Direct labor 
C) Indirect labor 
D) Basic labor 
E) Joint labor

Question 8

Use the following information for Acme, Inc., as of December 31 to answer the next questions:
 
-What is the correct amount of overhead?

Accepted Answer

A) $192,000. 
B) $110,500. 
C) $200,000. 
D) $150,000. 
E) $ 77,500. 
A) $192,000. 
B) $110,500. 
C) $200,000. 
D) $150,000. 
E) $ 77,500.

Question 9

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 10

Fraud affects all business.

Accepted Answer

A) True 
 B)False

Question 11

The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year:   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 12

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

Accepted Answer

A) True 
 B)False

Question 13

The following information is available for Talking Toys, Inc. for the current year:
 
-The total manufacturing costs incurred during the year were:

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 14

For a manufacturer, the cost of goods sold can be computed by adding the beginning finished goods inventory to ________________________ and then subtracting the ending finished goods inventory.

Accepted Answer

cost of go

Question 15

Direct costs are incurred for the benefit of more than one cost object.

Accepted Answer

A) True 
 B)False

Question 16

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 24 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 24 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 17

The following list indicates costs as they flow through the business as a product is manufactured.Some items are missing.Compute the missing amounts.
Materials Inventory:
Beginning materials inventory $ 37,500
Raw materials purchased 567,400
Ending materials inventory 31,570
Direct materials used in production ____A____
Goods in process:
Beginning GIP balance 93,250
direct labor _____B___
Factory overhead 742,500 (Note: 2 times the amount of direct labor cost)
Cost of goods manufactured ____C____
Ending GIP balance 87,600
Finished goods inventory:
Beginning FG balance 49,000
Ending FG balance _____D____
Cost of goods sold 1,625,000

Accepted Answer

A.$37,500 + $567,400 - X =$31,

Question 18

Labor costs that are clearly associated with specific units or batches of product because the labor is used to convert raw materials into finished products called are:

Accepted Answer

A) Sunk labor 
B) Direct labor 
C) Indirect labor 
D) Finished labor 
E) Supervisory labor 
A) Sunk labor 
B) Direct labor 
C) Indirect labor 
D) Finished labor 
E) Supervisory labor

Question 19

Factory overhead includes selling and administrative expenses because they are indirect costs of a product.

Accepted Answer

A) True 
 B)False

Question 20

Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct material and direct labor costs, are called:

Accepted Answer

A) Administrative expenses 
B) Nonmanufacturing costs 
C) Sunk costs 
D) Factory overhead 
E) Preproduction costs 
A) Administrative expenses 
B) Nonmanufacturing costs 
C) Sunk costs 
D) Factory overhead 
E) Preproduction costs

Continuous improvement:

An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:

A management concept that encourages all managers and employees to be in tune with the wants and needs of customers, and which leads to flexible product designs and production processes, is called:

One of the usual differences between financial and managerial accounting is the time dimension of the information reported.

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

Under a just-in-time manufacturing system, large quantities of inventory are accumulated throughout the factory to be certain that needed components are available each time that they are needed.

The cost of labor that is not clearly associated with specific units or batches of product is called:

Use the following information for Acme, Inc., as of December 31 to answer the next questions: -What is the correct amount of overhead?

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:

Fraud affects all business.

The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year: The raw materials used in manufacturing during the year totaled $118,000.Raw materials purchased during the year amount to:

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

The following information is available for Talking Toys, Inc. for the current year: -The total manufacturing costs incurred during the year were:

For a manufacturer, the cost of goods sold can be computed by adding the beginning finished goods inventory to ________________________ and then subtracting the ending finished goods inventory.

Direct costs are incurred for the benefit of more than one cost object.

Flexibility of practice when applied to managerial accounting means that:

Labor costs that are clearly associated with specific units or batches of product because the labor is used to convert raw materials into finished products called are:

Factory overhead includes selling and administrative expenses because they are indirect costs of a product.

Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct material and direct labor costs, are called:

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

Filters

Exam 1: Managerial Accounting Concepts and Principles

Continuous improvement:

An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:

A management concept that encourages all managers and employees to be in tune with the wants and needs of customers, and which leads to flexible product designs and production processes, is called:

One of the usual differences between financial and managerial accounting is the time dimension of the information reported.

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

Under a just-in-time manufacturing system, large quantities of inventory are accumulated throughout the factory to be certain that needed components are available each time that they are needed.

The cost of labor that is not clearly associated with specific units or batches of product is called:

Use the following information for Acme, Inc., as of December 31 to answer the next questions: -What is the correct amount of overhead?

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:

Fraud affects all business.

The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year: The raw materials used in manufacturing during the year totaled $118,000.Raw materials purchased during the year amount to:

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

The following information is available for Talking Toys, Inc. for the current year: -The total manufacturing costs incurred during the year were:

For a manufacturer, the cost of goods sold can be computed by adding the beginning finished goods inventory to ________________________ and then subtracting the ending finished goods inventory.

Direct costs are incurred for the benefit of more than one cost object.

Flexibility of practice when applied to managerial accounting means that:

Labor costs that are clearly associated with specific units or batches of product because the labor is used to convert raw materials into finished products called are:

Factory overhead includes selling and administrative expenses because they are indirect costs of a product.

Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct material and direct labor costs, are called:

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

Filters