Question 1

Another title for goods in process inventory is:

Accepted Answer

A)  Indirect materials inventory. 
B)  Work in process inventory. 
C)  Conversion costs. 
D)  Direct materials inventory. 
E)  Raw materials inventory. 
A)  Indirect materials inventory. 
B)  Work in process inventory. 
C)  Conversion costs. 
D)  Direct materials inventory. 
E)  Raw materials inventory.

Question 2

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

Accepted Answer

Just-In-Ti

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

Both financial and managerial accounting influence user's decisions and actions.

Accepted Answer

A) True 
 B)False

Question 5

The management concept of customer orientation encourages a company to set up its production system to produce large quantities of the same product for all customers.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

Herren, Inc. reported the following data regarding costs and inventories for the current year: beginning goods-in-process inventory, $4,000; beginning finished goods inventory, $2,000; cost of goods manufactured, $11,500; operating expenses, $3,000; ending finished goods inventory, $1,000; ending goods-in-process inventory, $1,500. Cost of goods sold for Herren, Inc. equals _________________.

Accepted Answer

$12,500 ($

Question 9

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 10

Current information for the Austin Company follows: All raw materials used were traceable to specific batches of product. Austin Company's cost of goods manufactured for the year is:

Accepted Answer

A)  $125,800. 
B)  $128,600. 
C)  $131,400. 
D)  $137,000. 
E)  $139,000. 
A)  $125,800. 
B)  $128,600. 
C)  $131,400. 
D)  $137,000. 
E)  $139,000.

Question 11

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 12

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 13

An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:

Accepted Answer

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

Question 14

A company manufactures coats in a large facility. One area in the production facility is an underused storage space. The company has twice turned down offers to lease out this facility. This situation is an example of what costing concept? How should the company handle the costing for this situation?

Accepted Answer

The situation raises an opportunity cost

Question 15

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on drivers or indicators of future financial performance.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

Managerial accounting is an activity tha

Question 17

Selling and administrative expenses are normally product costs.

Accepted Answer

A) True 
 B)False

Question 18

For each of the characteristics below, identify whether it is a focus of financial accounting or managerial accounting. Use the letter F to identify financial accounting and M to identify managerial accounting.

Accepted Answer

The answer of For each of the characteristics below, identify...

Question 19

A mixed 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)  Contains a combination of fixed costs and variable costs. 
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)  Contains a combination of fixed costs and variable costs. 
E)  Has already been incurred and cannot be avoided so it is irrelevant for decision making.

Question 20

Cycle time is calculated by process time plus inspection time plus move time plus __________________.

Accepted Answer

The answer of Cycle time is calculated by process time...

Exam 18: Managerial Accounting Concepts and Principles

Another title for goods in process inventory is:

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

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

Both financial and managerial accounting influence user's decisions and actions.

The management concept of customer orientation encourages a company to set up its production system to produce large quantities of the same product for all customers.

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

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.

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

Current information for the Austin Company follows: All raw materials used were traceable to specific batches of product. Austin Company's cost of goods manufactured for the year is:

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:

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

An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on drivers or indicators of future financial performance.

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

Selling and administrative expenses are normally product costs.

For each of the characteristics below, identify whether it is a focus of financial accounting or managerial accounting. Use the letter F to identify financial accounting and M to identify managerial accounting.

A mixed cost:

Cycle time is calculated by process time plus inspection time plus move time plus __________________.

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