Question 1

Managerial accounting reports generally pertain to ______________ of a business and may be very detailed.

Accepted Answer

The answer of Managerial accounting reports generally pertain to ______________...

Question 2

Which of the following statements about internal reports is not true?

Accepted Answer

A)  The content of internal reports may extend beyond the double-entry accounting system. 
B)  Internal reports may show all amounts at market values. 
C)  Internal reports may discuss prospective events. 
D)  Most internal reports are summarized rather than detailed. 
A)  The content of internal reports may extend beyond the double-entry accounting system. 
B)  Internal reports may show all amounts at market values. 
C)  Internal reports may discuss prospective events. 
D)  Most internal reports are summarized rather than detailed.

Question 3

Indirect materials and indirect labor are both inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 4

Which one of the following represents a period cost?

Accepted Answer

A)  The VP of Sales' salary and benefits 
B)  Overhead allocated to the manufacturing operations 
C)  Labor costs associated with quality control 
D)  Fringe benefits associated with factory workers 
A)  The VP of Sales' salary and benefits 
B)  Overhead allocated to the manufacturing operations 
C)  Labor costs associated with quality control 
D)  Fringe benefits associated with factory workers

Question 5

Because of automation which component of product cost is declining?

Accepted Answer

A)  Direct labor 
B)  Direct materials 
C)  Manufacturing overhead 
D)  Advertising 
A)  Direct labor 
B)  Direct materials 
C)  Manufacturing overhead 
D)  Advertising

Question 6

Both direct materials and indirect materials are

Accepted Answer

A)  raw materials. 
B)  manufacturing overhead. 
C)  merchandise inventory. 
D)  sold directly to customers by a manufacturing company. 
A)  raw materials. 
B)  manufacturing overhead. 
C)  merchandise inventory. 
D)  sold directly to customers by a manufacturing company.

Question 7

Raw materials inventory shows the cost of completed goods available for sale to customers.

Accepted Answer

A) True 
 B)False

Question 8

Using the following information compute the direct materials used. $\begin{array}{lll}
\text { Raw materials inventory, January 1 } & \$  20,000 \
\text { Raw materials inventory, December 31 } & 40,000 \
\text { Work in process, January 1 } & 18,000 \
\text { Work in process, December 31 } & 12,000 \
\text { Finished goods, January 1 } & 40,000 \
\text { Finished goods, December 31 } & 32,000\
\text { Raw materials purchases } & 1,700,000 \
\text { Direct labor } & 760,000 \
\text { Factory utilities } & 150,000 \
\text { Indirect labor } & 50,000 \
\text { Factory depreciation } & 400,000 \
\text { Operating expenses } & 420,000
\end{array}$

Accepted Answer

A)  $1760000. 
B)  $1720000. 
C)  $1700000. 
D)  $1680000. 
A)  $1760000. 
B)  $1720000. 
C)  $1700000. 
D)  $1680000.

Question 9

A manufacturing company usually has three inventory accounts which are (1)___________________ (2)___________________ and (3)___________________.

Accepted Answer

Finished Goods Inven

Question 10

Direct materials become a cost of the finished goods manufactured when they are acquired not when they are used.

Accepted Answer

A) True 
 B)False

Question 11

Controlling is the process of determining whether planned goals are being met.

Accepted Answer

A) True 
 B)False

Question 12

Cost of goods manufactured is calculated as follows: a. Beginning WIP + direct materials used + direct labor + manufacturing overhead + ending WIP.
b. Direct materials used + direct labor + manufacturing overhead - beginning WIP + ending WIP.
c. Beginning WIP + direct materials used + direct labor + manufacturing overhead - ending WIP.
d. Direct materials used + direct labor + manufacturing overhead - ending WIP - beginning WIP.

Accepted Answer

The answer of Cost of goods manufactured is calculated as...

Question 13

Julie Mills is studying for her accounting mid-term examination. Summarize for Julie what she should know about management functions.

Accepted Answer

Julie should know that the management of

Question 14

Three broad managerial functions are: (1)______________ (2)______________ and (3)______________.

Accepted Answer

planning d

Question 15

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

Accepted Answer

A)  period costs. 
B)  nonmanufacturing costs. 
C)  selling and administrative expenses. 
D)  manufacturing overhead. 
A)  period costs. 
B)  nonmanufacturing costs. 
C)  selling and administrative expenses. 
D)  manufacturing overhead.

Question 16

Worth Company reported the following year-end information: beginning work in process inventory $180000; cost of goods manufactured $866000; beginning finished goods inventory $252000; ending work in process inventory $220000; and ending finished goods inventory $264000. Worth Company's cost of goods sold for the year is

Accepted Answer

A)  $854000. 
B)  $878000. 
C)  $826000. 
D)  $602000. 
A)  $854000. 
B)  $878000. 
C)  $826000. 
D)  $602000.

Question 17

The sum of the direct materials costs direct labor costs and manufacturing overhead incurred is the

Accepted Answer

A)  cost of goods manufactured. 
B)  total manufacturing overhead. 
C)  total manufacturing costs. 
D)  total cost of work in process. 
A)  cost of goods manufactured. 
B)  total manufacturing overhead. 
C)  total manufacturing costs. 
D)  total cost of work in process.

Question 18

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is

Accepted Answer

A)  manufacturing overhead. 
B)  indirect materials. 
C)  indirect labor. 
D)  direct labor. 
A)  manufacturing overhead. 
B)  indirect materials. 
C)  indirect labor. 
D)  direct labor.

Question 19

Which of the following is not classified as direct labor?

Accepted Answer

A)  Bottlers of beer in a brewery 
B)  Copy machine operators at a copy shop 
C)  Wages of supervisors 
D)  Bakers in a bakery 
A)  Bottlers of beer in a brewery 
B)  Copy machine operators at a copy shop 
C)  Wages of supervisors 
D)  Bakers in a bakery

Question 20

Managerial accounting is also called

Accepted Answer

A)  management accounting. 
B)  controlling. 
C)  analytical accounting. 
D)  inside reporting. 
A)  management accounting. 
B)  controlling. 
C)  analytical accounting. 
D)  inside reporting.

Exam 19: Managerial Accounting

Managerial accounting reports generally pertain to ______________ of a business and may be very detailed.

Which of the following statements about internal reports is not true?

Indirect materials and indirect labor are both inventoriable costs.

Which one of the following represents a period cost?

Because of automation which component of product cost is declining?

Both direct materials and indirect materials are

Raw materials inventory shows the cost of completed goods available for sale to customers.

A manufacturing company usually has three inventory accounts which are (1)___________________ (2)___________________ and (3)___________________.

Direct materials become a cost of the finished goods manufactured when they are acquired not when they are used.

Controlling is the process of determining whether planned goals are being met.

Julie Mills is studying for her accounting mid-term examination. Summarize for Julie what she should know about management functions.

Three broad managerial functions are: (1)______________ (2)______________ and (3)______________.

Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

The sum of the direct materials costs direct labor costs and manufacturing overhead incurred is the

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is

Which of the following is not classified as direct labor?

Managerial accounting is also called

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

Filters

A manufacturing company usually has three inventory accounts which are (1)_________ (2)_ and (3)___________.

Three broad managerial functions are: (1) (2) and (3)__.