Question 1

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

Accepted Answer

The answer of The model whose goal is to eliminate...

Question 2

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 3

When the attitude of continuous improvement exists throughout an organization, every manager and employee is challenged to continuously experiment with new and improved business practices.

Accepted Answer

A) True 
 B)False

Question 4

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.

Question 5

Product costs are expenditures necessary to manufacture finished products.

Accepted Answer

A) True 
 B)False

Question 6

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 7

________ inventory consists of completed products ready for sale by a manufacturer.

Accepted Answer

The answer of ________ inventory consists of completed products ready...

Question 8

The raw materials inventory turnover ratio is raw materials purchased divided by the average raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 9

Explain what is meant by the "lean business model" and why many businesses have adopted it.

Accepted Answer

The answer of Explain what is meant by the "lean...

Question 10

Use the cost information below for Sundar Company to determine the total manufacturing costs added during the current year:

$\begin{array}{lr}
\text { Direct materials used } & \$ 19,000 \
\text { Direct labor used } & 24,500 \
\text { Factory overhead } & 55,100 \
\text { Beginning work in process inventory } & 10,700 \
\text { Ending work in process inventory } & 11,300
\end{array}$

Accepted Answer

A)  $98,600. 
B)  $43,500. 
C)  $98,000. 
D)  $42,900. 
E)  $79,000.

Question 11

Period costs can refer to expenditures necessary to manufacture products during the time period.

Accepted Answer

A) True 
 B)False

Question 12

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 units of product. 
C)  Include selling and administrative expenses. 
D)  Are expensed on the income statement when incurred. 
E)  Are moved to the income statement for any unsold inventory at the end of the year.

Question 13

The Work in Process Inventory account is found only in the ledgers of merchandising companies.

Accepted Answer

A) True 
 B)False

Question 14

What is the main difference between the income statement of a manufacturer and that of a merchandiser?

Accepted Answer

The answer of What is the main difference between the...

Question 15

Richards Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the company follows:

$\begin{array}{lr}
\text { Beginning raw materials inventory } & \$ 10,000 \
\text { Ending raw materials inventory } & 12,000 \
\text { Raw material purchases } & 90,000 \
\text { Beginning work in process inventory } & 40,000 \
\text { Ending work in process inventory } & 25,000 \
\text { Direct labor } & 130,000 \
\text { Total factory overhead } & 60,000 \
\text { Beginning finished goods inventory } & 55,000 \
\text { Ending finished goods inventory } & 45,000
\end{array}$ 
The company's cost of direct materials used, cost of goods manufactured and cost of goods sold is:

Accepted Answer

The answer of Richards Company manufactures a single product. All...

Question 16

Using the information below, calculate net income for the period:

$\begin{array}{lr}\text { Sales revenues for the period }&\$1,304,000\
\text {Operating expenses for the period }&239,000\
\text {Finished Goods Inventory, January 1 }&36,000\
\text {Finished Goods Inventory, December 31 }&41,000\
\text {Cost of goods manufactured for the period }&540,000\
\end{array}$

Accepted Answer

A)  $774,000. 
B)  $769,000. 
C)  $530,000. 
D)  $535,000. 
E)  $448,000.

Question 17

The following information relates to the manufacturing operations of the JNR Printing Company for the year: 11edcbcd
$\begin{array}{lrr} 
& \text { Beginning } & \text { Ending } \
\text { Raw materials inventory } & \$ 57,000 & \$ 60,000 \
\text { Finished goods } & 68,000 & 60,000
\end{array}$

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.

Question 18

Total quality management (TQM) is a system that acquires inventory and produces only when needed.

Accepted Answer

A) True 
 B)False

Question 19

Indirect materials are accounted for as factory overhead because they are not clearly identified with specific product units.

Accepted Answer

A) True 
 B)False

Question 20

An employee is dissatisfied with the resolution of an ethical conflict with his supervisor at his place of employment. According to the Institute of Management Accountants, the employee's next step should be to:

Accepted Answer

A)  contact the IMA. 
B)  contact the next level of management who is not involved in the ethical conflict. 
C)  make the president of the company aware of the ethical conflict. 
D)  report the incident to the State Board of Accountancy. 
E)  resign from the company.

Exam 1: Managerial Accounting Concepts and Principles

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

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.

When the attitude of continuous improvement exists throughout an organization, every manager and employee is challenged to continuously experiment with new and improved business practices.

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:

Product costs are expenditures necessary to manufacture finished products.

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

________ inventory consists of completed products ready for sale by a manufacturer.

The raw materials inventory turnover ratio is raw materials purchased divided by the average raw materials inventory.

Explain what is meant by the "lean business model" and why many businesses have adopted it.

Period costs can refer to expenditures necessary to manufacture products during the time period.

Product costs:

The Work in Process Inventory account is found only in the ledgers of merchandising companies.

What is the main difference between the income statement of a manufacturer and that of a merchandiser?

Total quality management (TQM) is a system that acquires inventory and produces only when needed.

Indirect materials are accounted for as factory overhead because they are not clearly identified with specific product units.

An employee is dissatisfied with the resolution of an ethical conflict with his supervisor at his place of employment. According to the Institute of Management Accountants, the employee's next step should be to: