Question 1

An _____________________ cost requires the future outlay of cash and is relevant for decision making.

Accepted Answer

The answer of An _____________________ cost requires the future outlay...

Question 2

For product costs associated with a particular product to be expensed on the income statement:

Accepted Answer

A)  The product must be transferred to Finished Goods Inventory. 
B)  The product must still be in Goods In Process Inventory. 
C)  The product must be sold. 
D)  The product may be in any of the manufacturer's inventory accounts. 
E)  The company must expect to sell the product during the next twelve months. 
A)  The product must be transferred to Finished Goods Inventory. 
B)  The product must still be in Goods In Process Inventory. 
C)  The product must be sold. 
D)  The product may be in any of the manufacturer's inventory accounts. 
E)  The company must expect to sell the product during the next twelve months.

Question 3

The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

Accepted Answer

A)  Total quality management. 
B)  Managerial accounting. 
C)  Customer orientation. 
D)  Continuous improvement. 
E)  Lean business model. 
A)  Total quality management. 
B)  Managerial accounting. 
C)  Customer orientation. 
D)  Continuous improvement. 
E)  Lean business model.

Question 4

An employee is dissatisfied with the resolution of an ethical conflict at his place of employment. According to the Institute of Management Accountants, the employee's next step should be to

Accepted Answer

A)  contact the IMA. 
B)  contact the next level of management who is not involved in the ethical conflict. 
C)  make the president of the company aware of the ethical conflict. 
D)  report the incident to the State Board of Accountancy. 
E)  resign from the company. 
A)  contact the IMA. 
B)  contact the next level of management who is not involved in the ethical conflict. 
C)  make the president of the company aware of the ethical conflict. 
D)  report the incident to the State Board of Accountancy. 
E)  resign from the company.

Question 5

A _________________ cost contains a combination of fixed and variable costs.

Accepted Answer

The answer of A _________________ cost contains a combination of...

Question 6

The manufacturing statement must be prepared monthly as it is a required general-purpose financial statement.

Accepted Answer

A) True 
 B)False

Question 7

The following cost items relate to the Brock Company. Classify each cost as a variable cost, a fixed cost, or a mixed cost by placing an X in the appropriate column. Each cost should be evaluated in terms of the volume of units of finished products produced. Also indicate with an X for each item if it is a product cost or a period cost.

Accepted Answer

The answer of The following cost items relate to the...

Question 8

An employee overstates his reimbursable expenses in one period in order to receive needed additional cash. Since he intends to reduce his expenses the next period by the current overstatement, this act is not considered fraudulent.

Accepted Answer

A) True 
 B)False

Question 9

Calculate Cost of Goods Sold for the following two companies:

Accepted Answer

The answer of Calculate Cost of Goods Sold for the...

Question 10

What are the components of the manufacturing statement? Describe each component.

Accepted Answer

The components of the manufacturing stat

Question 11

Total quality management and just-in-time manufacturing are two modern systems designed to improve the quality of management and the products and services offered.

Accepted Answer

A) True 
 B)False

Question 12

A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of $18,000, cost of goods manufactured of $32,500, and an ending finished goods inventory of $17,800. The cost of goods sold for this company is:

Accepted Answer

A)  $21,200. 
B)  $29,300. 
C)  $32,500. 
D)  $47,100. 
E)  $27,600. 
A)  $21,200. 
B)  $29,300. 
C)  $32,500. 
D)  $47,100. 
E)  $27,600.

Question 13

A variable cost changes in proportion to changes in the volume in activity.

Accepted Answer

A) True 
 B)False

Question 14

What is managerial accounting and how is it used to aid decision makers?

Accepted Answer

Managerial accounting is an activity tha

Question 15

The potential benefit lost by taking a specific action from two or more choices is an __________________________.

Accepted Answer

The answer of The potential benefit lost by taking a...

Question 16

Use the following information to prepare the manufacturing statement for Forsythe Company for the month ended June 30.

Accepted Answer

The answer of Use the following information to prepare the...

Question 17

Policies and procedures used by management to monitor and control business activities are known as _________________________.

Accepted Answer

The answer of Policies and procedures used by management to...

Exam 18: Managerial Accounting Concepts and Principles

An _____________________ cost requires the future outlay of cash and is relevant for decision making.

For product costs associated with a particular product to be expensed on the income statement:

The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

An employee is dissatisfied with the resolution of an ethical conflict at his place of employment. According to the Institute of Management Accountants, the employee's next step should be to

A _________________ cost contains a combination of fixed and variable costs.

The manufacturing statement must be prepared monthly as it is a required general-purpose financial statement.

An employee overstates his reimbursable expenses in one period in order to receive needed additional cash. Since he intends to reduce his expenses the next period by the current overstatement, this act is not considered fraudulent.

Calculate Cost of Goods Sold for the following two companies:

What are the components of the manufacturing statement? Describe each component.

Total quality management and just-in-time manufacturing are two modern systems designed to improve the quality of management and the products and services offered.

A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of $18,000, cost of goods manufactured of $32,500, and an ending finished goods inventory of $17,800. The cost of goods sold for this company is:

A variable cost changes in proportion to changes in the volume in activity.

What is managerial accounting and how is it used to aid decision makers?

The potential benefit lost by taking a specific action from two or more choices is an __________________________.

Use the following information to prepare the manufacturing statement for Forsythe Company for the month ended June 30.

Policies and procedures used by management to monitor and control business activities are known as _________________________.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Job Order Cost Accounting

Process Cost Accounting

Cost Allocation and Performance Measurement

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Capital Budgeting and Managerial Decisions

Time Value of Money

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