Question 1

Managerial accounting uses only past data in reports to aid management in the decision making process.

Accepted Answer

A) True 
 B)False

Question 2

Planning is the process of monitoring operating results and comparing actual results with the expected results.

Accepted Answer

A) True 
 B)False

Question 3

Taylor Industries had a fire and some of its accounting records were destroyed.Available information is presented below for the year ended December 31.
   Additional information:
Factory overhead is 150% of direct labor cost
Finished goods inventory decreased by $18,000 during the year Work in process inventory increased by $12,000 during the year
Calculate:
a Materials inventory, January 1
b Direct labor cost
c Factory overhead incurred
d Cost of goods sold

Accepted Answer

a Materials inventory, January 1 = $15,0

Question 4

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 5

All of the following could be considered a direct material except

Accepted Answer

A) steel 
B) fabric 
C) glue 
D) lumber 
A) steel 
B) fabric 
C) glue 
D) lumber

Question 6

What is the purpose of the statement of cost of goods manufactured?

Accepted Answer

A) to determine the ending materials inventory 
B) to determine the ending work in process inventory 
C) to determine the amounts transferred to finished goods 
D) all of these 
A) to determine the ending materials inventory 
B) to determine the ending work in process inventory 
C) to determine the amounts transferred to finished goods 
D) all of these

Question 7

The primary goal of managerial accounting is to provide information to

Accepted Answer

A) investors 
B) creditors 
C) management 
D) external auditors 
A) investors 
B) creditors 
C) management 
D) external auditors

Question 8

In most business organizations, the chief management accountant is called the controller.

Accepted Answer

A) True 
 B)False

Question 9

Magnus Industries has the following data:
   Calculate the cost of raw materials used.

Accepted Answer

Raw Materials Used =

Question 10

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except

Accepted Answer

A) provide objective measures of past operations and subjective estimates about future decisions 
B) be prepared in accordance with generally accepted accounting principles 
C) be provided at any time management needs information 
D) be prepared to report information for any unit of the business to support decision making 
A) provide objective measures of past operations and subjective estimates about future decisions 
B) be prepared in accordance with generally accepted accounting principles 
C) be provided at any time management needs information 
D) be prepared to report information for any unit of the business to support decision making

Question 11

Manufacturers use machinery and labor to convert direct materials into finished products.

Accepted Answer

A) True 
 B)False

Question 12

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

Accepted Answer

A) investors 
B) managers 
C) shareholders 
D) customers 
A) investors 
B) managers 
C) shareholders 
D) customers

Question 13

Watson Company has the following data:
   Calculate the amount of direct materials used.

Accepted Answer

Direct materials use

Question 14

Period costs can be found on both the balance sheet and the income statement.

Accepted Answer

A) True 
 B)False

Question 15

Only the value of the inventory that is sold will appear on the income statement.

Accepted Answer

A) True 
 B)False

Question 16

A product cost is

Accepted Answer

A) expensed in the period in which it is manufactured 
B) shown with current liabilities on the balance sheet 
C) shown with operating expenses on the income statement 
D) expensed in the period the product is sold 
A) expensed in the period in which it is manufactured 
B) shown with current liabilities on the balance sheet 
C) shown with operating expenses on the income statement 
D) expensed in the period the product is sold

Question 17

Insurance expense incurred on a factory building would be treated as a

Accepted Answer

A) direct cost 
B) period cost 
C) product cost 
D) selling cost 
A) direct cost 
B) period cost 
C) product cost 
D) selling cost

Question 18

Laramie Technologies had the following data:
   Calculate the cost of goods manufactured.

Accepted Answer

Cost of goods manufa

Question 19

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 20

In most business organizations, the chief management accountant is called the

Accepted Answer

A) chief accounting officer 
B) controller 
C) chairman of the board 
D) chief executive officer 
A) chief accounting officer 
B) controller 
C) chairman of the board 
D) chief executive officer

Managerial accounting uses only past data in reports to aid management in the decision making process.

Planning is the process of monitoring operating results and comparing actual results with the expected results.

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost.

All of the following could be considered a direct material except

What is the purpose of the statement of cost of goods manufactured?

The primary goal of managerial accounting is to provide information to

In most business organizations, the chief management accountant is called the controller.

Magnus Industries has the following data: Calculate the cost of raw materials used.

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except

Manufacturers use machinery and labor to convert direct materials into finished products.

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

Watson Company has the following data: Calculate the amount of direct materials used.

Period costs can be found on both the balance sheet and the income statement.

Only the value of the inventory that is sold will appear on the income statement.

A product cost is

Insurance expense incurred on a factory building would be treated as a

Laramie Technologies had the following data: Calculate the cost of goods manufactured.

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

In most business organizations, the chief management accountant is called the

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 1: Managerial Accounting Concepts and Principles

Managerial accounting uses only past data in reports to aid management in the decision making process.

Planning is the process of monitoring operating results and comparing actual results with the expected results.

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost.

All of the following could be considered a direct material except

What is the purpose of the statement of cost of goods manufactured?

The primary goal of managerial accounting is to provide information to

In most business organizations, the chief management accountant is called the controller.

Magnus Industries has the following data: Calculate the cost of raw materials used.

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except

Manufacturers use machinery and labor to convert direct materials into finished products.

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?

Watson Company has the following data: Calculate the amount of direct materials used.

Period costs can be found on both the balance sheet and the income statement.

Only the value of the inventory that is sold will appear on the income statement.

A product cost is

Insurance expense incurred on a factory building would be treated as a

Laramie Technologies had the following data: Calculate the cost of goods manufactured.

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

In most business organizations, the chief management accountant is called the

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters