Question 1

____________________ inventory consists of products in the process of being manufactured but not yet complete.

Accepted Answer

Goods in p

Question 2

The Institute of Management Accountants Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

Accepted Answer

A) True 
 B)False

Question 3

Ajax Company accumulated the following account information for the year:   Using the above information, total factory overhead costs would be:

Accepted Answer

A)  $9,800. 
B)  $16,800. 
C)  $15,800. 
D)  $13,000. 
E)  $7,800. 
A)  $9,800. 
B)  $16,800. 
C)  $15,800. 
D)  $13,000. 
E)  $7,800.

Question 4

The cost of partially completed products is included in the balance of the Goods in Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 5

____________________ is the process of monitoring plans and evaluating an organization's activities and employees.

Accepted Answer

The answer of ____________________ is the process of monitoring plans...

Question 6

A fixed cost:

Accepted Answer

A)  Requires the future outlay of cash and is relevant for future decision making. 
B)  Does not change with changes in the volume of activity within the relevant range. 
C)  Is directly traceable to a cost object. 
D)  Changes with changes in the volume of activity within the relevant range. 
E)  Has already been incurred and cannot be avoided so it is irrelevant for decision making. 
A)  Requires the future outlay of cash and is relevant for future decision making. 
B)  Does not change with changes in the volume of activity within the relevant range. 
C)  Is directly traceable to a cost object. 
D)  Changes with changes in the volume of activity within the relevant range. 
E)  Has already been incurred and cannot be avoided so it is irrelevant for decision making.

Question 7

An employee devises a payroll scheme that costs the employer $150. The employer discovers the fraud but decides not to confront the employee since the amount of the fraud is small. Discuss why this course of action is not advisable.

Accepted Answer

While this particular incident resulted

Question 8

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 9

Prime costs consist of direct labor and factory overhead.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following costs would not be classified as factory overhead?

Accepted Answer

A)  Property taxes on maintenance machinery. 
B)  Expired insurance on factory equipment. 
C)  Wages of the factory janitor. 
D)  Metal doorknobs used on wood cabinets produced. 
E)  Small tools used in production. 
A)  Property taxes on maintenance machinery. 
B)  Expired insurance on factory equipment. 
C)  Wages of the factory janitor. 
D)  Metal doorknobs used on wood cabinets produced. 
E)  Small tools used in production.

Question 11

One difference between financial and managerial accounting is that the external users that use financial information must plan a company's future, but the internal users of managerial accounting information generally must decide whether to invest in or lend to a company.

Accepted Answer

A) True 
 B)False

Question 12

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable.

Accepted Answer

A) True 
 B)False

Question 13

With respect to cycle time, companies strive to reduce non-value added time in order to improve ________________________.

Accepted Answer

The answer of With respect to cycle time, companies strive...

Question 14

A manufacturing statement is also known as a schedule or listing of the:

Accepted Answer

A)  Raw materials processed. 
B)  Factory supplies used. 
C)  Cost of goods manufactured. 
D)  Total finished goods. 
E)  Cost of goods sold. 
A)  Raw materials processed. 
B)  Factory supplies used. 
C)  Cost of goods manufactured. 
D)  Total finished goods. 
E)  Cost of goods sold.

Question 15

Using the information below, calculate the cost of goods manufactured for the period.

Accepted Answer

A)  $553,000. 
B)  $536,000. 
C)  $549,000. 
D)  $527,000. 
E)  $525,000. 
A)  $553,000. 
B)  $536,000. 
C)  $549,000. 
D)  $527,000. 
E)  $525,000.

Question 16

An internal control system consists of the policies and procedures managers use to do all of the following except:

Accepted Answer

A)  Urge adherence to company policies. 
B)  Promote efficient operations. 
C)  Ensure reliable accounting. 
D)  Determine pricing for products. 
E)  Protect assets. 
A)  Urge adherence to company policies. 
B)  Promote efficient operations. 
C)  Ensure reliable accounting. 
D)  Determine pricing for products. 
E)  Protect assets.

Question 17

Direct materials are not usually easily traced to a product.

Accepted Answer

A) True 
 B)False

Question 18

The focus of managerial accounting is on providing ________________ reports while the focus of financial accounting is on providing _____________ reports.

Accepted Answer

The answer of The focus of managerial accounting is on...

Question 19

Newly completed units are combined with beginning finished goods inventory to make up total ending goods in process inventory.

Accepted Answer

A) True 
 B)False

Question 20

Indirect materials are accounted for as factory overhead because they are not easily traced to specific units or batches of production.

Accepted Answer

A) True 
 B)False

Exam 18: Managerial Accounting Concepts and Principles

____________________ inventory consists of products in the process of being manufactured but not yet complete.

The Institute of Management Accountants Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

Ajax Company accumulated the following account information for the year: Using the above information, total factory overhead costs would be:

The cost of partially completed products is included in the balance of the Goods in Process Inventory account.

____________________ is the process of monitoring plans and evaluating an organization's activities and employees.

A fixed cost:

An employee devises a payroll scheme that costs the employer $150. The employer discovers the fraud but decides not to confront the employee since the amount of the fraud is small. Discuss why this course of action is not advisable.

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Prime costs consist of direct labor and factory overhead.

Which of the following costs would not be classified as factory overhead?

One difference between financial and managerial accounting is that the external users that use financial information must plan a company's future, but the internal users of managerial accounting information generally must decide whether to invest in or lend to a company.

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable.

With respect to cycle time, companies strive to reduce non-value added time in order to improve ________________________.

A manufacturing statement is also known as a schedule or listing of the:

Using the information below, calculate the cost of goods manufactured for the period.

An internal control system consists of the policies and procedures managers use to do all of the following except:

Direct materials are not usually easily traced to a product.

The focus of managerial accounting is on providing ________________ reports while the focus of financial accounting is on providing _____________ reports.

Newly completed units are combined with beginning finished goods inventory to make up total ending goods in process inventory.

Indirect materials are accounted for as factory overhead because they are not easily traced to specific units or batches of production.

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

Filters

The focus of managerial accounting is on providing ____ reports while the focus of financial accounting is on providing _ reports.