Question 1

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 2

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 3

___________________ is the process of setting goals and making plans to achieve them.

Accepted Answer

The answer of ___________________ is the process of setting goals...

Question 4

An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:

Accepted Answer

A)  Continuous improvement. 
B)  Customer orientation. 
C)  Just-in-time manufacturing. 
D)  Theory of constraints. 
E)  Total quality management. 
A)  Continuous improvement. 
B)  Customer orientation. 
C)  Just-in-time manufacturing. 
D)  Theory of constraints. 
E)  Total quality management.

Question 5

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 6

Which of the following items represents a difference between financial and managerial accounting?

Accepted Answer

A)  Users of the information. 
B)  Flexibility of practices. 
C)  Timeliness and time dimension of the information reported. 
D)  Nature of the information. 
E)  All of these. 
A)  Users of the information. 
B)  Flexibility of practices. 
C)  Timeliness and time dimension of the information reported. 
D)  Nature of the information. 
E)  All of these.

Question 7

_______________ are beliefs that distinguish right from wrong.

Accepted Answer

The answer of _______________ are beliefs that distinguish right from...

Question 8

Expenditures incurred in the process of converting raw materials to finished goods, that include direct labor and factory overhead are known as ______________________.

Accepted Answer

The answer of Expenditures incurred in the process of converting...

Question 9

A _________________ cost changes in proportion to changes in the volume of activity.

Accepted Answer

The answer of A _________________ cost changes in proportion to...

Question 10

Which of the following represents the correct formula for calculating cycle time for a manufacturer?

Accepted Answer

A)  Process time + inspection time - move time - wait time. 
B)  Process time - inspection time + move time + wait time. 
C)  Process time + inspection time + move time + wait time. 
D)  Process time - inspection time - move time - wait time. 
E)  Process time + inspection time + move time - wait time. 
A)  Process time + inspection time - move time - wait time. 
B)  Process time - inspection time + move time + wait time. 
C)  Process time + inspection time + move time + wait time. 
D)  Process time - inspection time - move time - wait time. 
E)  Process time + inspection time + move time - wait time.

Question 11

Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct material and direct labor costs, are called:

Accepted Answer

A)  Administrative expenses. 
B)  Nonmanufacturing costs. 
C)  Sunk costs. 
D)  Factory overhead. 
E)  Preproduction costs. 
A)  Administrative expenses. 
B)  Nonmanufacturing costs. 
C)  Sunk costs. 
D)  Factory overhead. 
E)  Preproduction costs.

Question 12

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 13

Factory overhead costs normally include all of the following except:

Accepted Answer

A)  Indirect labor costs. 
B)  Indirect material costs. 
C)  Selling costs. 
D)  Machinery oil. 
E)  Factory rent. 
A)  Indirect labor costs. 
B)  Indirect material costs. 
C)  Selling costs. 
D)  Machinery oil. 
E)  Factory rent.

Question 14

_____________________ inventory consists of goods a company acquires to use in making products.

Accepted Answer

The answer of _____________________ inventory consists of goods a company...

Question 15

The salary paid to the supervisor of an assembly line would normally be classified as:

Accepted Answer

A)  Direct labor. 
B)  Indirect labor. 
C)  A period cost. 
D)  A general cost. 
E)  An assembly cost. 
A)  Direct labor. 
B)  Indirect labor. 
C)  A period cost. 
D)  A general cost. 
E)  An assembly cost.

Question 16

A manufacturer's inventory that is not completely finished is called __________________.

Accepted Answer

The answer of A manufacturer's inventory that is not completely...

Question 17

An opportunity cost is:

Accepted Answer

A)  An uncontrollable cost. 
B)  A cost of potential benefit lost. 
C)  A change in the cost of a component. 
D)  A direct cost. 
E)  A sunk cost. 
A)  An uncontrollable cost. 
B)  A cost of potential benefit lost. 
C)  A change in the cost of a component. 
D)  A direct cost. 
E)  A sunk cost.

Question 18

List the four goals of an internal control system.

Accepted Answer

An internal control system is the polici

Question 19

Cost concepts such as variable, fixed, mixed, direct and indirect apply only to manufacturers and not to service companies.

Accepted Answer

A) True 
 B)False

Question 20

A primary difference between variable costs and fixed costs is:

Accepted Answer

A)  Variable costs per unit change in varying increments while fixed costs per unit change in equal increments over the relevant range of activity. 
B)  Variable costs per unit fluctuate and fixed costs per unit remain constant over the relevant range of activity. 
C)  Variable costs per unit are fixed and fixed costs per unit are variable over the relevant range of activity. 
D)  Variable costs per unit change in equal increments while total fixed costs change in proportion to the level of activity over the company's relevant range. 
E)  Total variable costs are fixed and fixed costs per unit never change over the relevant range of activity. 
A)  Variable costs per unit change in varying increments while fixed costs per unit change in equal increments over the relevant range of activity. 
B)  Variable costs per unit fluctuate and fixed costs per unit remain constant over the relevant range of activity. 
C)  Variable costs per unit are fixed and fixed costs per unit are variable over the relevant range of activity. 
D)  Variable costs per unit change in equal increments while total fixed costs change in proportion to the level of activity over the company's relevant range. 
E)  Total variable costs are fixed and fixed costs per unit never change over the relevant range of activity.

Exam 18: Managerial Accounting Concepts and Principles

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

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

___________________ is the process of setting goals and making plans to achieve them.

An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:

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.

Which of the following items represents a difference between financial and managerial accounting?

_______________ are beliefs that distinguish right from wrong.

Expenditures incurred in the process of converting raw materials to finished goods, that include direct labor and factory overhead are known as ______________________.

A _________________ cost changes in proportion to changes in the volume of activity.

Which of the following represents the correct formula for calculating cycle time for a manufacturer?

Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct material and direct labor costs, are called:

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

Factory overhead costs normally include all of the following except:

_____________________ inventory consists of goods a company acquires to use in making products.

The salary paid to the supervisor of an assembly line would normally be classified as:

A manufacturer's inventory that is not completely finished is called __________________.

An opportunity cost is:

List the four goals of an internal control system.

Cost concepts such as variable, fixed, mixed, direct and indirect apply only to manufacturers and not to service companies.

A primary difference between variable costs and fixed costs is:

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

Long-Term Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

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

Filters