Question 1

Flexibility of practice when applied to managerial accounting means that

Accepted Answer

A)  The information must be presented in electronic format so that it is easily changed. 
B)  Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for. 
C)  The managerial accountants need to be on call twenty-four hours a day. 
D)  The design of a company's managerial accounting system largely depends on the nature of the business and the arrangement of the internal operations of the company. 
E)  Managers must be flexible with information provided in varying forms and using inconsistent measures. 
A)  The information must be presented in electronic format so that it is easily changed. 
B)  Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for. 
C)  The managerial accountants need to be on call twenty-four hours a day. 
D)  The design of a company's managerial accounting system largely depends on the nature of the business and the arrangement of the internal operations of the company. 
E)  Managers must be flexible with information provided in varying forms and using inconsistent measures.

Question 2

________________________ is an activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Accepted Answer

Managerial

Question 3

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

Accepted Answer

The components of the manufacturing stat

Question 4

The cost of labor that is not clearly associated with specific units or batches of product is called:

Accepted Answer

A)  Unspecified labor. 
B)  Direct labor. 
C)  Indirect labor. 
D)  Basic labor. 
E)  Joint labor. 
A)  Unspecified labor. 
B)  Direct labor. 
C)  Indirect labor. 
D)  Basic labor. 
E)  Joint labor.

Question 5

Which of the following items are management concepts that were created to improve companies' performances?

Accepted Answer

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

Question 6

The focus of financial accounting is on an organization's projects, processes, and subdivisions, and the focus of managerial accounting is on the whole organization.

Accepted Answer

A) True 
 B)False

Question 7

_______________ is the deliberate misuse of the employer's assets for the employee's personal gain.

Accepted Answer

The answer of _______________ is the deliberate misuse of the...

Question 8

Using the information below for Hardy Company; determine the manufacturing costs added during the current year:

Accepted Answer

A)  $12,000. 
B)  $16,100. 
C)  $17,100. 
D)  $18,100. 
E)  $13,600 
A)  $12,000. 
B)  $16,100. 
C)  $17,100. 
D)  $18,100. 
E)  $13,600

Question 9

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 10

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. 
A)  $714,000. 
B)  $482,000. 
C)  $1,022,000. 
D)  $187,000. 
E)  Cannot be determined from the information provided.

Question 11

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 12

Materials that are used in support of the production process but are not clearly identified with units or batches of product are called:

Accepted Answer

A)  Secondary materials. 
B)  General materials. 
C)  Direct materials. 
D)  Indirect materials. 
E)  Materials inventory. 
A)  Secondary materials. 
B)  General materials. 
C)  Direct materials. 
D)  Indirect materials. 
E)  Materials inventory.

Question 13

Use the following information to compute the cost of goods manufactured:

Accepted Answer

A)  $36,650. 
B)  $30,950. 
C)  $30,650. 
D)  $30,350. 
E)  $31,650. 
A)  $36,650. 
B)  $30,950. 
C)  $30,650. 
D)  $30,350. 
E)  $31,650.

Question 14

Which of the following items appears only in a manufacturing company's financial statements?

Accepted Answer

A)  Cost of goods sold. 
B)  Cost of goods manufactured. 
C)  Goods available for sale. 
D)  Gross profit. 
E)  Net income. 
A)  Cost of goods sold. 
B)  Cost of goods manufactured. 
C)  Goods available for sale. 
D)  Gross profit. 
E)  Net income.

Question 15

An employer is unsure if an act by an employee constitutes fraud. What are some of the indications that an employee is involved in a fraud scheme?

Accepted Answer

All fraud is done to provide d

Question 16

Raw materials inventory includes only direct materials.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Whether a cost is controllable or not controllable by an employee depends on the employee's level of responsibility.

Accepted Answer

A) True 
 B)False

Question 19

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 20

____________________ 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...

Exam 18: Managerial Accounting Concepts and Principles

Flexibility of practice when applied to managerial accounting means that

________________________ is an activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.

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

The cost of labor that is not clearly associated with specific units or batches of product is called:

Which of the following items are management concepts that were created to improve companies' performances?

The focus of financial accounting is on an organization's projects, processes, and subdivisions, and the focus of managerial accounting is on the whole organization.

_______________ is the deliberate misuse of the employer's assets for the employee's personal gain.

Using the information below for Hardy Company; determine the manufacturing costs added during the current year:

Calculate the cost of goods manufactured using the following information:

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

Managerial accounting information:

Materials that are used in support of the production process but are not clearly identified with units or batches of product are called:

Use the following information to compute the cost of goods manufactured:

Which of the following items appears only in a manufacturing company's financial statements?

An employer is unsure if an act by an employee constitutes fraud. What are some of the indications that an employee is involved in a fraud scheme?

Raw materials inventory includes only direct materials.

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

Whether a cost is controllable or not controllable by an employee depends on the employee's level of responsibility.

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

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

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

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