Question 1

In a manufacturing company, the salary of the sales staff is an example of a period cost.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a product cost?

Accepted Answer

A)  sales commissions 
B)  CEO's salary 
C)  delivery van depreciation 
D)  depreciation on production equipment 
A)  sales commissions 
B)  CEO's salary 
C)  delivery van depreciation 
D)  depreciation on production equipment

Question 3

Match each term with its correct definition.
-Job that is directly involved in providing goods or services to customers.

Accepted Answer

A) Controlling 
B) Managerial accounting 
C) Organizational chart 
D) Planning 
E) Line position
F)Financial accounting
G)Directing 
A) Controlling 
B) Managerial accounting 
C) Organizational chart 
D) Planning 
E) Line position
F)Financial accounting
G)Directing

Question 4

Product costs, such as direct materials costs, are expensed in the period they are incurred.

Accepted Answer

A) True 
 B)False

Question 5

Direct materials and direct labor are prime costs.

Accepted Answer

A) True 
 B)False

Question 6

Citrine Manufacturing provided the following information for the month ended March 31:
 $$\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 22,000 \
\hline \text { Beginning Finished Goods Inventory } & 7,000 \
\hline \text { Ending Finished Goods Inventory } & 6,500 \
\hline \text { Cost of Goods Manufactured } & 10,600 \
\hline \text { Selling and Administrative Expenses } & 5,125 \
\hline
\end{array}$$ Prepare the income statement.

Accepted Answer

The answer of Citrine Manufacturing provided the following information for...

Question 7

Unlike merchandising companies, income statements of service companies include cost of goods sold as a line item.

Accepted Answer

A) True 
 B)False

Question 8

Financial and managerial accounting both provide useful information, but each has a different emphasis. Briefly distinguish between financial and managerial accounting as they relate to the 1) primary users, 2) purpose of information, and 3) focus and time dimension of the information.

Accepted Answer

The primary users of financial informati

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The following information is available from Avery Company, a manufacturer of security cameras: $$\begin{array} { | l | l | } 
\hline \text { Cost of Goods Manufactured } & \$ 312,000 \
\hline \text { Total Units Produced } & 1200 \
\hline \text { Number of Units Sold } & 350 \
\hline \text { Cost of Goods Sold } & \$ 275,000 \
\hline
\end{array}$$ The unit product cost for a security camera is:

Accepted Answer

A)  $260 
B)  $286 
C)  $1 
D)  $324 
A)  $260 
B)  $286 
C)  $1 
D)  $324

Question 11

Monitoring operations and keeping the company on track is part of the ________.

Accepted Answer

A)  controlling function 
B)  directing function 
C)  planning function 
D)  strategic function 
A)  controlling function 
B)  directing function 
C)  planning function 
D)  strategic function

Question 12

Factory rent, as well as factory property taxes and insurance, are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  comparing actual to expected results 
B)  choosing goals and deciding how to achieve them 
C)  monitoring operations to keep the company on track 
D)  monitoring and evaluating the results of operations 
A)  comparing actual to expected results 
B)  choosing goals and deciding how to achieve them 
C)  monitoring operations to keep the company on track 
D)  monitoring and evaluating the results of operations

Question 14

In order to reach new markets, many companies are moving operations to other countries.

Accepted Answer

A) True 
 B)False

Question 15

Fuchsia, Inc. provides automobile repair services in the local community. The company provides the following information for the month of March: $$\begin{array} { | l | r | } 
\hline \text { Building Rent Expense } & \$ 5200 \
\hline \text { Depreciation Expense-Equipment } & 1600 \
\hline \text { Supplies Expense } & 8000 \
\hline \text { Utilities Expense } & 2350 \
\hline
\end{array}$$ Fuchsia provided services to 1600 clients in the month of March and generated $23,500 as revenue.
How much is the cost per service? (Round your answer to the nearest cent.)

Accepted Answer

A)  $10.72 
B)  $3.25 
C)  $10.00 
D)  $5.72 
A)  $10.72 
B)  $3.25 
C)  $10.00 
D)  $5.72

Question 16

The accountant for Myra Lido deliberately recorded operating expenses as operating assets in order to record a higher net income for the company. As long as the amount of the misstatement was not material, this would not be considered unethical behavior.

Accepted Answer

A) True 
 B)False

Question 17

Define planning. List and briefly discuss the two types of planning managers perform.

Accepted Answer

Planning is the process of choosing goal

Question 18

Super Tread Inc. is a large manufacturer of auto tires. Super Tread has provided the following information: $$\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 55,000 \
\hline \text { Beginning Finished Goods Inventory } & 15,500 \
\hline \text { Cost of Goods Sold } & 37,500 \
\hline \text { Cost of Goods Manufactured } & 44,500 \
\hline
\end{array}$$ Calculate the amount of ending Finished Goods Inventory reported on Super Tread's balance sheet.

Accepted Answer

A)  $10,500 
B)  $60,000 
C)  $22,500 
D)  $7000 
A)  $10,500 
B)  $60,000 
C)  $22,500 
D)  $7000

Question 19

Define direct cost.

Accepted Answer

An indirect cost is

Question 20

Repair and maintenance costs for manufacturing equipment are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Exam 16: Introduction to Managerial Accounting

In a manufacturing company, the salary of the sales staff is an example of a period cost.

Which of the following is a product cost?

Match each term with its correct definition. -Job that is directly involved in providing goods or services to customers.

Product costs, such as direct materials costs, are expensed in the period they are incurred.

Direct materials and direct labor are prime costs.

Citrine Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 22,000 Beginning Finished Goods Inventory 7,000 Ending Finished Goods Inventory 6,500 Cost of Goods Manufactured 10,600 Selling and Administrative Expenses 5,125 Prepare the income statement.

Unlike merchandising companies, income statements of service companies include cost of goods sold as a line item.

Financial and managerial accounting both provide useful information, but each has a different emphasis. Briefly distinguish between financial and managerial accounting as they relate to the 1) primary users, 2) purpose of information, and 3) focus and time dimension of the information.

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

The following information is available from Avery Company, a manufacturer of security cameras: Cost of Goods Manufactured \ 312,000 Total Units Produced 1200 Number of Units Sold 350 Cost of Goods Sold \ 275,000 The unit product cost for a security camera is:

Monitoring operations and keeping the company on track is part of the ________.

Factory rent, as well as factory property taxes and insurance, are included in manufacturing overhead.

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

In order to reach new markets, many companies are moving operations to other countries.

The accountant for Myra Lido deliberately recorded operating expenses as operating assets in order to record a higher net income for the company. As long as the amount of the misstatement was not material, this would not be considered unethical behavior.

Define planning. List and briefly discuss the two types of planning managers perform.

Define direct cost.

Repair and maintenance costs for manufacturing equipment are included in manufacturing overhead.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Investments

Current Liabilities and Payroll

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based Just-In-Time

Cost Volume Profit Analysis

Variable Costing

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Understanding Accounting Information Systems and their Components

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