Question 1

The Work-in-Process Inventory account includes the ________.

Accepted Answer

A)  goods that are ready to be sold 
B)  goods that are partially completed 
C)  goods that have been sold in the market 
D)  goods that are returned by customers 
A)  goods that are ready to be sold 
B)  goods that are partially completed 
C)  goods that have been sold in the market 
D)  goods that are returned by customers

Question 2

For external reporting purposes,GAAP requires companies to treat period costs as assets.

Accepted Answer

A) True 
 B)False

Question 3

Unit product costs can be used to measure operating income and determine the cost of Finished Goods Inventory.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Companies that provide healthcare,communication,banking and other benefits to society are called ________.

Accepted Answer

A)  service companies 
B)  societal organizations 
C)  merchandising companies 
D)  consumer organizations 
A)  service companies 
B)  societal organizations 
C)  merchandising companies 
D)  consumer organizations

Question 6

Describe the flow of product costs for a manufacturer.

Accepted Answer

The flow of product costs for a manufact

Question 7

Unit cost per service is calculated by dividing total costs by the total number of services provided.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would be included as indirect manufacturing costs for a manufacturing company?

Accepted Answer

A)  sales commissions 
B)  fuel and maintenance for delivery vehicles 
C)  wages of the assembly line workers 
D)  wages of the factory manager 
A)  sales commissions 
B)  fuel and maintenance for delivery vehicles 
C)  wages of the assembly line workers 
D)  wages of the factory manager

Question 9

The value chain includes both the upstream and downstream activities of a business.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a product cost for a manufacturing company?

Accepted Answer

A)  salary of administrative staff 
B)  wages paid to factory janitor 
C)  commissions paid to sales staff 
D)  depreciation on corporate building 
A)  salary of administrative staff 
B)  wages paid to factory janitor 
C)  commissions paid to sales staff 
D)  depreciation on corporate building

Question 11

Financial reporting is typically much more detailed than managerial accounting.

Accepted Answer

A) True 
 B)False

Question 12

Repair and maintenance costs of vehicles used to deliver products to customers are product costs.

Accepted Answer

A) True 
 B)False

Question 13

Match each term with its correct definition.
-The Board of Directors is shown at the top of this diagram.

Accepted Answer

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

Question 14

ERP systems can integrate all of a company's functions,departments,and data into a single system.

Accepted Answer

A) True 
 B)False

Question 15

A diagram that shows the relationships between departments and divisions,and the managers that are responsible for each section is called a(n)________.

Accepted Answer

A)  departmentalization chart 
B)  work specialization chart 
C)  organizational chart 
D)  chain of command chart 
A)  departmentalization chart 
B)  work specialization chart 
C)  organizational chart 
D)  chain of command chart

Question 16

Which of the following correctly describes Just-in-Time (JIT)Management?

Accepted Answer

A)  It is a production approach that maintains surplus goods at each stage of manufacture. 
B)  It helps managers cut costs by speeding the transformation of raw materials into finished products. 
C)  It is a cost management approach that focuses on maintaining large finished goods inventory levels. 
D)  It is an inventory approach that stockpiles raw materials to protect against supply interruptions. 
A)  It is a production approach that maintains surplus goods at each stage of manufacture. 
B)  It helps managers cut costs by speeding the transformation of raw materials into finished products. 
C)  It is a cost management approach that focuses on maintaining large finished goods inventory levels. 
D)  It is an inventory approach that stockpiles raw materials to protect against supply interruptions.

Question 17

Poodle Grooming Salon provides dog grooming services.In March,the business groomed 245 dogs,earned $10,300 in revenues,and incurred the following operating costs:
 $$\begin{array} { | l | r | } 
\hline \text { Grooming Supplies Expense } & \$ 485 \
\hline \text { Wages Expense } & 3,260 \
\hline \text { Utilities Expense } & 285 \
\hline \text { Rent Expense } & 1,200 \
\hline \text { Depreciation Expense - Equipment } & 500 \
\hline
\end{array}$$ Compute the cost of one grooming.(Round to two decimal places.)

Accepted Answer

Cost of one grooming = Total operating c

Question 18

The following information relates to Myer,Inc.: $$\begin{array} { | l | r |} 
\hline \text { Advertising Costs } & \$ 10,600 \
\hline \text { Sales Salary } & 10,000 \
\hline \text { Sales Revenue } & 500,000 \
\hline \text { President's Salary } & 230,000 \
\hline \text { Office Rent } & 60,500 \
\hline \text { Manufacturing Equipment Depreciation } & 1200 \
\hline \text { Indirect Materials Used } & 800 \
\hline \text { Indirect Labor } & 13,000 \
\hline \text { Factory Repair and Maintenance } & 920 \
\hline \text { Direct Materials Used } & 27,500 \
\hline \text { Direct Labor } & 36,000 \
\hline \text { Delivery Vehicle Depreciation } & 1550 \
\hline \text { Administrative Salaries } & 22,000 \
\hline
\end{array}$$ How much were Myer's product costs?

Accepted Answer

A)  $604,650 
B)  $252,000 
C)  $510,600 
D)  $86,620 
A)  $604,650 
B)  $252,000 
C)  $510,600 
D)  $86,620

Question 19

Repair and maintenance costs for manufacturing equipment are product costs.

Accepted Answer

A) True 
 B)False

Question 20

Knowing the unit cost per item helps managers set appropriate selling prices.

Accepted Answer

A) True 
 B)False

Exam 18: Introduction to Managerial Accounting

The Work-in-Process Inventory account includes the ________.

For external reporting purposes,GAAP requires companies to treat period costs as assets.

Unit product costs can be used to measure operating income and determine the cost of Finished Goods Inventory.

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

Companies that provide healthcare,communication,banking and other benefits to society are called ________.

Describe the flow of product costs for a manufacturer.

Unit cost per service is calculated by dividing total costs by the total number of services provided.

Which of the following would be included as indirect manufacturing costs for a manufacturing company?

The value chain includes both the upstream and downstream activities of a business.

Which of the following is a product cost for a manufacturing company?

Financial reporting is typically much more detailed than managerial accounting.

Repair and maintenance costs of vehicles used to deliver products to customers are product costs.

Match each term with its correct definition. -The Board of Directors is shown at the top of this diagram.

ERP systems can integrate all of a company's functions,departments,and data into a single system.

A diagram that shows the relationships between departments and divisions,and the managers that are responsible for each section is called a(n)________.

Which of the following correctly describes Just-in-Time (JIT)Management?

Repair and maintenance costs for manufacturing equipment are product costs.

Knowing the unit cost per item helps managers set appropriate selling prices.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets,natural Resources,and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

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