Question 1

A performance report that identifies the amount of employee downtime is a financial accounting report.

Accepted Answer

A) True 
 B)False

Question 2

What term is used to describe the process of developing the organization's objectives and translating those into courses of action?

Accepted Answer

A)  Supervising 
B)  Planning 
C)  Improving 
D)  Decision making 
A)  Supervising 
B)  Planning 
C)  Improving 
D)  Decision making

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

In the income statement of a manufacturing company, what replaces purchases in the cost of goods section of a retail company?

Accepted Answer

A)  Finished goods 
B)  Cost of merchandise available 
C)  Cost of goods manufactured 
D)  Work in process completed 
A)  Finished goods 
B)  Cost of merchandise available 
C)  Cost of goods manufactured 
D)  Work in process completed

Question 5

Depreciation on factory plant and equipment is an example of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 6

A cost object indicates how costs are related or identified.

Accepted Answer

A) True 
 B)False

Question 7

Accounting designed to meet the needs of decision-makers inside the business is referred to as:

Accepted Answer

A)  general accounting 
B)  financial accounting 
C)  managerial accounting 
D)  external accounting 
A)  general accounting 
B)  financial accounting 
C)  managerial accounting 
D)  external accounting

Question 8

Prime costs consists of direct materials, indirect materials, and direct labor.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not a factory overhead cost?

Accepted Answer

A)  materials used directly in the manufacturing process of the product 
B)  insurance on factory equipment 
C)  salaries of production supervisors 
D)  property tax on factory building 
A)  materials used directly in the manufacturing process of the product 
B)  insurance on factory equipment 
C)  salaries of production supervisors 
D)  property tax on factory building

Question 10

Factory overhead is an example of a product cost.

Accepted Answer

A) True 
 B)False

Question 11

Direct costs can be specifically traced to a cost object.

Accepted Answer

A) True 
 B)False

Question 12

In most business organizations, the chief accountant is called the treasurer.

Accepted Answer

A) True 
 B)False

Question 13

Sienna Company has the following information for January.
   Show your calculations to find the cost of goods manufactured.

Accepted Answer

The answer of Sienna Company has the following information for...

Question 14

All of the following are examples of indirect labor except:

Accepted Answer

A)  maintenance personnel 
B)  janitorial personnel 
C)  machine operators 
D)  plant managers 
A)  maintenance personnel 
B)  janitorial personnel 
C)  machine operators 
D)  plant managers

Question 15

A product cost is:

Accepted Answer

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

Question 16

If the cost of direct materials is a small portion of total production cost, it may be classified as part of:

Accepted Answer

A)  direct labor cost 
B)  selling and administrative costs 
C)  miscellaneous costs 
D)  factory overhead cost 
A)  direct labor cost 
B)  selling and administrative costs 
C)  miscellaneous costs 
D)  factory overhead cost

Question 17

The payment of dividends is an example of a cost.

Accepted Answer

A) True 
 B)False

Question 18

A company manufactured 50,000 units of a product at a cost of $450,000. They sold 40,000 units for $15 each. What is the gross margin?

Accepted Answer

A)  $750,000 
B)  $240,000 
C)  $600,000 
D)  $450,000 
A)  $750,000 
B)  $240,000 
C)  $600,000 
D)  $450,000

Question 19

Which of the following statements is false?

Accepted Answer

A)  There is no overlap between financial and managerial accounting. 
B)  Managerial accounting sometimes relies on past information. 
C)  Managerial accounting does not need to conform to GAAP 
D)  Financial accounting must conform to GAAP. 
A)  There is no overlap between financial and managerial accounting. 
B)  Managerial accounting sometimes relies on past information. 
C)  Managerial accounting does not need to conform to GAAP 
D)  Financial accounting must conform to GAAP.

Question 20

All of the following employees hold line positions in Anthea Electric EXCEPT:

Accepted Answer

A)  vice president of production 
B)  vice president of finance 
C)  manager of the Valhalla Plant 
D)  vice president of sales 
A)  vice president of production 
B)  vice president of finance 
C)  manager of the Valhalla Plant 
D)  vice president of sales

Exam 16: Managerial Accounting Concepts and Principles

A performance report that identifies the amount of employee downtime is a financial accounting report.

What term is used to describe the process of developing the organization's objectives and translating those into courses of action?

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

In the income statement of a manufacturing company, what replaces purchases in the cost of goods section of a retail company?

Depreciation on factory plant and equipment is an example of factory overhead cost.

A cost object indicates how costs are related or identified.

Accounting designed to meet the needs of decision-makers inside the business is referred to as:

Prime costs consists of direct materials, indirect materials, and direct labor.

Which of the following is not a factory overhead cost?

Factory overhead is an example of a product cost.

Direct costs can be specifically traced to a cost object.

In most business organizations, the chief accountant is called the treasurer.

Sienna Company has the following information for January. Show your calculations to find the cost of goods manufactured.

All of the following are examples of indirect labor except:

A product cost is:

If the cost of direct materials is a small portion of total production cost, it may be classified as part of:

The payment of dividends is an example of a cost.

A company manufactured 50,000 units of a product at a cost of $450,000. They sold 40,000 units for $15 each. What is the gross margin?

Which of the following statements is false?

All of the following employees hold line positions in Anthea Electric EXCEPT:

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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 and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

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