Question 1

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 2

Use the cost information below for Laurels Company to determine the cost of goods manufactured during the current year:

Accepted Answer

A) $12,000. 
B) $16,100. 
C) $17,100. 
D) $18,100. 
E) $13,600. 
A) $12,000. 
B) $16,100. 
C) $17,100. 
D) $18,100. 
E) $13,600.

Question 3

Using the information below,compute the raw materials inventory turnover:

Accepted Answer

A) 6.76. 
B) 6.02. 
C) 54.0. 
D) 60.6. 
E) 6.37. 
A) 6.76. 
B) 6.02. 
C) 54.0. 
D) 60.6. 
E) 6.37.

Question 4

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 5

Wesson Company sold 10,000 units of its only product in the first half of the year.If sales decrease by 15% in the second half of the year,which cost will not change?

Accepted Answer

A) Direct materials. 
B) Direct labor. 
C) Sales commissions. 
D) Factory supplies. 
E) Depreciation on equipment. 
A) Direct materials. 
B) Direct labor. 
C) Sales commissions. 
D) Factory supplies. 
E) Depreciation on equipment.

Question 6

What is managerial accounting and how is it used to aid decision makers?

Accepted Answer

Managerial accounting is an activity tha

Question 7

A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:

Accepted Answer

A) Fixed versus variable. 
B) Direct versus indirect. 
C) Financial versus managerial. 
D) Service versus manufacturing. 
E) Product versus period. 
A) Fixed versus variable. 
B) Direct versus indirect. 
C) Financial versus managerial. 
D) Service versus manufacturing. 
E) Product versus period.

Question 8

Newly completed units are combined with beginning finished goods inventory to make up total ending work in process inventory.

Accepted Answer

A) True 
 B)False

Question 9

Craigmont Company's direct materials costs are $3,000,000,its direct labor costs total $7,000,000,and its factory overhead costs total $5,000,000.Its prime costs total:

Accepted Answer

A) $10,000,000. 
B) $8,000,000. 
C) $12,000,000. 
D) $5,000,000. 
E) $15,000,000. 
A) $10,000,000. 
B) $8,000,000. 
C) $12,000,000. 
D) $5,000,000. 
E) $15,000,000.

Question 10

Identify and describe the three categories of manufacturing costs.

Accepted Answer

The three basic cost elements in account

Question 11

The triple bottom line focuses on three measures: financial,social,and environmental.

Accepted Answer

A) True 
 B)False

Question 12

Duncan Crafts manufactures specialty key chains for tourist attractions.On January 1,the firm had 300 souvenir attraction disks,costing $3 each,used in the production of key chains.During the year Duncan Crafts purchased 1,500 souvenir disks costing $3 each and produced 1,100 key chains.Compute the total cost of souvenir disk raw materials inventory at December 31.

Accepted Answer

The answer of Duncan Crafts manufactures specialty key chains for...

Question 13

Which of the following statements is true regarding product and period costs?

Accepted Answer

A) Office salaries expense and factory maintenance are both product costs. 
B) Office rent is a product cost and supervisors' salaries expense is a period cost. 
C) Factory rent is a product cost and advertising expense is a period cost. 
D) Delivery expense is a product cost and indirect materials is a period cost. 
E) Sales commissions and indirect labor are both period costs. 
A) Office salaries expense and factory maintenance are both product costs. 
B) Office rent is a product cost and supervisors' salaries expense is a period cost. 
C) Factory rent is a product cost and advertising expense is a period cost. 
D) Delivery expense is a product cost and indirect materials is a period cost. 
E) Sales commissions and indirect labor are both period costs.

Question 14

Use the following information to compute the cost of goods manufactured.Assume that all raw materials used were traceable to specific units of product:

Accepted Answer

A) $36,650. 
B) $30,950. 
C) $30,650. 
D) $30,350. 
E) $31,650. 
A) $36,650. 
B) $30,950. 
C) $30,650. 
D) $30,350. 
E) $31,650.

Question 15

Gordon Company sold 2,000 more units than budgeted of its only product.How will total fixed cost be affected?

Accepted Answer

A) Remain constant. 
B) Decrease by same percentage as sales increase. 
C) Increase by same percentage as sales increase. 
D) Decrease $2,000. 
E) Increase $2,000. 
A) Remain constant. 
B) Decrease by same percentage as sales increase. 
C) Increase by same percentage as sales increase. 
D) Decrease $2,000. 
E) Increase $2,000.

Question 16

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

Accepted Answer

Managerial

Question 17

An important managerial accounting report is the budget,which predicts revenues and expenses.

Accepted Answer

A) True 
 B)False

Question 18

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 19

For each of the characteristics below,identify whether it is a focus of financial accounting
or managerial accounting.Use the letter F to identify financial accounting and M to identify
managerial accounting.
_____ 1.Users are generally investors,creditors,analysts,and regulators.
_____ 2.Used to assist managers in making planning and control decisions.
_____ 3.Information is structured and controlled by GAAP.
_____ 4.Information is available quickly without the need to wait for an audit.
_____ 5.Information is mainly historical with some predictions.
_____ 6.Emphasis of the information is a company's projects,processes,and divisions.
_____ 7.Information is mostly monetary,but includes nonmonetary information.

Accepted Answer

1.F; 2.M;

Question 20

The following information is available for the year ended December 31:   The amount of raw materials used in production for the year is:

Accepted Answer

A) $76,400. 
B) $95,500. 
C) $72,500. 
D) $74,900. 
E) $70,100. 
A) $76,400. 
B) $95,500. 
C) $72,500. 
D) $74,900. 
E) $70,100.

Exam 14: Managerial Accounting Concepts and Principles

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Use the cost information below for Laurels Company to determine the cost of goods manufactured during the current year:

Using the information below,compute the raw materials inventory turnover:

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

Wesson Company sold 10,000 units of its only product in the first half of the year.If sales decrease by 15% in the second half of the year,which cost will not change?

What is managerial accounting and how is it used to aid decision makers?

A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:

Newly completed units are combined with beginning finished goods inventory to make up total ending work in process inventory.

Craigmont Company's direct materials costs are $3,000,000,its direct labor costs total $7,000,000,and its factory overhead costs total $5,000,000.Its prime costs total:

Identify and describe the three categories of manufacturing costs.

The triple bottom line focuses on three measures: financial,social,and environmental.

Which of the following statements is true regarding product and period costs?

Use the following information to compute the cost of goods manufactured.Assume that all raw materials used were traceable to specific units of product:

Gordon Company sold 2,000 more units than budgeted of its only product.How will total fixed cost be affected?

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

An important managerial accounting report is the budget,which predicts revenues and expenses.

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

The following information is available for the year ended December 31: The amount of raw materials used in production for the year is:

Accounting in Business

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

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