Question 1

For what activities do an organization's managers need accounting information?

Accepted Answer

Managers of an organization us

Question 2

During her first year with the company, Ann mistakenly accumulated some of the company's period costs in ending inventory. Which of the following indicates how this error affects the company's financial statements assuming number of units produced exceeded number of units sold during the period?

Accepted Answer

A)  Cash flows from operations are understated. 
B)  Gross margin is unaffected. 
C)  Net income is overstated. 
D)  Inventory is understated. 
A)  Cash flows from operations are understated. 
B)  Gross margin is unaffected. 
C)  Net income is overstated. 
D)  Inventory is understated.

Question 3

Which of the following statements concerning product costs versus general, selling, and administrative costs is false?

Accepted Answer

A)  Product costs incurred during the period will initially appear as inventory on the balance sheet. 
B)  General, selling, and administrative costs are always expensed when paid. 
C)  Product costs may be divided between the balance sheet and income statement. 
D)  General, selling, and administrative costs never appear as inventory on the balance sheet. 
A)  Product costs incurred during the period will initially appear as inventory on the balance sheet. 
B)  General, selling, and administrative costs are always expensed when paid. 
C)  Product costs may be divided between the balance sheet and income statement. 
D)  General, selling, and administrative costs never appear as inventory on the balance sheet.

Question 4

During which of the following activities, value is considered to be added to a product or service takes place?

Accepted Answer

A)  Process time 
B)  Move time 
C)  Inspection time 
D)  Rework time 
A)  Process time 
B)  Move time 
C)  Inspection time 
D)  Rework time

Question 5

Just in time systems can be used by both manufacturing and merchandising companies.

Accepted Answer

A) True 
 B)False

Question 6

Assuming that the number of units produced exceeds the number of units sold, misclassifying period costs as product costs will overstate net income relative to what net income would be without this error.

Accepted Answer

A) True 
 B)False

Question 7

Costs associated with holding inventory often include:

Accepted Answer

A)  theft, damage, and obsolescence. 
B)  financing. 
C)  warehouse space. 
D)  supervision. 
E)  All of these. 
A)  theft, damage, and obsolescence. 
B)  financing. 
C)  warehouse space. 
D)  supervision. 
E)  All of these.

Question 8

A company that incurred $1,000 in production costs reported cost of goods sold of $800 and selling costs of $100. Its ending finished goods inventory was $300.

Accepted Answer

A) True 
 B)False

For what activities do an organization's managers need accounting information?

During her first year with the company, Ann mistakenly accumulated some of the company's period costs in ending inventory. Which of the following indicates how this error affects the company's financial statements assuming number of units produced exceeded number of units sold during the period?

Which of the following statements concerning product costs versus general, selling, and administrative costs is false?

During which of the following activities, value is considered to be added to a product or service takes place?

Just in time systems can be used by both manufacturing and merchandising companies.

Assuming that the number of units produced exceeds the number of units sold, misclassifying period costs as product costs will overstate net income relative to what net income would be without this error.

Costs associated with holding inventory often include:

A company that incurred $1,000 in production costs reported cost of goods sold of $800 and selling costs of $100. Its ending finished goods inventory was $300.

An Introduction to Accounting

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Internal Controls, Accounting for Cash, and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, Partnerships, and Corporations

Financial Statement Analysis

Cost Behavior, Operating Leverage, and Profitability Analysis

Cost Accumulation, Tracing, and Allocation

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

Filters

Exam 10: An Introduction to Management Accounting

For what activities do an organization's managers need accounting information?

During her first year with the company, Ann mistakenly accumulated some of the company's period costs in ending inventory. Which of the following indicates how this error affects the company's financial statements assuming number of units produced exceeded number of units sold during the period?

Which of the following statements concerning product costs versus general, selling, and administrative costs is false?

During which of the following activities, value is considered to be added to a product or service takes place?

Just in time systems can be used by both manufacturing and merchandising companies.

Assuming that the number of units produced exceeds the number of units sold, misclassifying period costs as product costs will overstate net income relative to what net income would be without this error.

Costs associated with holding inventory often include:

A company that incurred $1,000 in production costs reported cost of goods sold of $800 and selling costs of $100. Its ending finished goods inventory was $300.

An Introduction to Accounting

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Internal Controls, Accounting for Cash, and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, Partnerships, and Corporations

Financial Statement Analysis

Cost Behavior, Operating Leverage, and Profitability Analysis

Cost Accumulation, Tracing, and Allocation

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

Filters