Question 1

Managerial accounting information:

Accepted Answer

A)  Is used mainly by external users. 
B)  Involves gathering information about costs for planning and control decisions. 
C)  Is generally the only accounting information available to managers. 
D)  Can be used for control purposes but not for planning purposes. 
E)  Has little to do with controlling costs. 
A)  Is used mainly by external users. 
B)  Involves gathering information about costs for planning and control decisions. 
C)  Is generally the only accounting information available to managers. 
D)  Can be used for control purposes but not for planning purposes. 
E)  Has little to do with controlling costs.

Question 2

The manufacturing statement is divided into four parts consisting of all of the following except:

Accepted Answer

A)  Direct materials. 
B)  Computation of cost of goods sold. 
C)  Overhead. 
D)  Computation of cost of goods manufactured. 
E)  Direct labor. 
A)  Direct materials. 
B)  Computation of cost of goods sold. 
C)  Overhead. 
D)  Computation of cost of goods manufactured. 
E)  Direct labor.

Question 3

One of the usual differences between financial and managerial accounting is the time dimension of the information reported.

Accepted Answer

A) True 
 B)False

Question 4

Harv's Sound Systems produces speakers for movie theaters that sell for $1,200 each. Listed below are selected cost items for the production of 600 units. Classify each cost as either fixed or variable, and either a product or a period cost.

Accepted Answer

The answer of Harv's Sound Systems produces speakers for movie...

Question 5

If beginning and ending goods in process inventories are $5,000 and $15,000, respectively, and cost of goods manufactured is $170,000, what is the total manufacturing cost for the period?

Accepted Answer

A)  $180,000. 
B)  $155,000. 
C)  $160,000. 
D)  $175,000. 
E)  $165,000. 
A)  $180,000. 
B)  $155,000. 
C)  $160,000. 
D)  $175,000. 
E)  $165,000.

Question 6

A ______________________ system means that a company acquires or produces inventory only when needed.

Accepted Answer

Just-In-Ti

Question 7

Calculate the cost of goods manufactured using the following information:

Accepted Answer

A)  $680,500. 
B)  $701,900. 
C)  $687,100. 
D)  $674,600. 
E)  $772,600. 
A)  $680,500. 
B)  $701,900. 
C)  $687,100. 
D)  $674,600. 
E)  $772,600.

Question 8

There are many differences between financial and managerial accounting. Identify and explain at least three of these differences.

Accepted Answer

(Students would need to choose any three

Question 9

A _________________ cost does not change in proportion to changes in the volume of activity within the relevant range.

Accepted Answer

The answer of A _________________ cost does not change in...

Question 10

Ringle Company is a manufacturer of compact disks (CDs). Place each of the following costs in the appropriate column.

Accepted Answer

The answer of Ringle Company is a manufacturer of compact...

Question 11

The manufacturing statement is also known as the schedule of manufacturing activities or the schedule of cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 12

Control is the process of setting goals and determining ways to achieve them.

Accepted Answer

A) True 
 B)False

Question 13

Using the information below, calculate gross profit for the period.

Accepted Answer

A)  $714,000. 
B)  $482,000. 
C)  $1,022,000. 
D)  $187,000. 
E)  Cannot be determined from the information provideD.Sales Revenues - Cost of Goods Sold = Gross Profit 
A)  $714,000. 
B)  $482,000. 
C)  $1,022,000. 
D)  $187,000. 
E)  Cannot be determined from the information provideD.Sales Revenues - Cost of Goods Sold = Gross Profit

Question 14

Expenditures directly associated with the manufacture of finished goods that include direct materials and direct labor are _____________________ costs.

Accepted Answer

The answer of Expenditures directly associated with the manufacture of...

Question 15

A ___________________ cost has already been incurred and cannot be avoided or changed, so it irrelevant to decision making.

Accepted Answer

The answer of A ___________________ cost has already been incurred...

Question 16

Information for York Plastics as of December 31 follows. Prepare (a) the company's manufacturing statement for the year ended December 31; (b) prepare the company's income statement that reports separate categories for selling and general and administrative expenses.

Accepted Answer

The answer of Information for York Plastics as of December...

Question 17

The ________________________ aids continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance along four dimensions: (1) financial, (2) customer, (3) internal business processes, and (4) learning and growth.

Accepted Answer

The answer of The ________________________ aids continuous improvement by augmenting...

Question 18

The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year:   The raw materials used in manufacturing during the year totaled $118,000. Raw materials purchased during the year amount to:

Accepted Answer

A)  $107,000. 
B)  $115,000. 
C)  $118,000. 
D)  $121,000. 
E)  $126,000. 
A)  $107,000. 
B)  $115,000. 
C)  $118,000. 
D)  $121,000. 
E)  $126,000.

Question 19

Products that have been completed and are ready to be sold by the manufacturer are called:

Accepted Answer

A)  Finished goods inventory. 
B)  Goods in process inventory. 
C)  Raw materials inventory. 
D)  Cost of goods sold. 
E)  Factory supplies. 
A)  Finished goods inventory. 
B)  Goods in process inventory. 
C)  Raw materials inventory. 
D)  Cost of goods sold. 
E)  Factory supplies.

Question 20

Product costs:

Accepted Answer

A)  Are expenditures necessary and integral to finished products. 
B)  Are expenditures identified more with a time period rather than with finished products. 
C)  Include selling and administrative expenses. 
D)  Are costs that vary with the volume of activity. 
E)  Are costs that do not vary with the volume of activity. 
A)  Are expenditures necessary and integral to finished products. 
B)  Are expenditures identified more with a time period rather than with finished products. 
C)  Include selling and administrative expenses. 
D)  Are costs that vary with the volume of activity. 
E)  Are costs that do not vary with the volume of activity.

Exam 18: Managerial Accounting Concepts and Principles

Managerial accounting information:

The manufacturing statement is divided into four parts consisting of all of the following except:

One of the usual differences between financial and managerial accounting is the time dimension of the information reported.

Harv's Sound Systems produces speakers for movie theaters that sell for $1,200 each. Listed below are selected cost items for the production of 600 units. Classify each cost as either fixed or variable, and either a product or a period cost.

If beginning and ending goods in process inventories are $5,000 and $15,000, respectively, and cost of goods manufactured is $170,000, what is the total manufacturing cost for the period?

A ______________________ system means that a company acquires or produces inventory only when needed.

Calculate the cost of goods manufactured using the following information:

There are many differences between financial and managerial accounting. Identify and explain at least three of these differences.

A _________________ cost does not change in proportion to changes in the volume of activity within the relevant range.

Ringle Company is a manufacturer of compact disks (CDs). Place each of the following costs in the appropriate column.

The manufacturing statement is also known as the schedule of manufacturing activities or the schedule of cost of goods manufactured.

Control is the process of setting goals and determining ways to achieve them.

Using the information below, calculate gross profit for the period.

Expenditures directly associated with the manufacture of finished goods that include direct materials and direct labor are _____________________ costs.

A ___________________ cost has already been incurred and cannot be avoided or changed, so it irrelevant to decision making.

Information for York Plastics as of December 31 follows. Prepare (a) the company's manufacturing statement for the year ended December 31; (b) prepare the company's income statement that reports separate categories for selling and general and administrative expenses.

The ________________________ aids continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance along four dimensions: (1) financial, (2) customer, (3) internal business processes, and (4) learning and growth.

The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year: The raw materials used in manufacturing during the year totaled $118,000. Raw materials purchased during the year amount to:

Products that have been completed and are ready to be sold by the manufacturer are called:

Product costs:

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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