Question 1

Cost of goods sold

Accepted Answer

A)  only appears on merchandising companies' income statements. 
B)  only appears on manufacturing companies' income statements. 
C)  appears on both manufacturing and merchandising companies' income statements. 
D)  is calculated exactly the same for merchandising and manufacturing companies. 
A)  only appears on merchandising companies' income statements. 
B)  only appears on manufacturing companies' income statements. 
C)  appears on both manufacturing and merchandising companies' income statements. 
D)  is calculated exactly the same for merchandising and manufacturing companies.

Question 2

Financial statements for external users can be described as

Accepted Answer

A)  user-specific. 
B)  general-purpose. 
C)  special-purpose. 
D)  managerial reports. 
A)  user-specific. 
B)  general-purpose. 
C)  special-purpose. 
D)  managerial reports.

Question 3

Period costs are not inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 4

What is work in process inventory generally described as?

Accepted Answer

A)  Costs applicable to units that have been started in production but are only partially completed 
B)  Costs associated with the end stage of manufacturing that are almost always complete and ready for customers 
C)  Costs strictly associated with direct labor 
D)  Beginning stage production costs associated with labor costs dealing with bringing in raw materials from the shipping docks 
A)  Costs applicable to units that have been started in production but are only partially completed 
B)  Costs associated with the end stage of manufacturing that are almost always complete and ready for customers 
C)  Costs strictly associated with direct labor 
D)  Beginning stage production costs associated with labor costs dealing with bringing in raw materials from the shipping docks

Question 5

What activities and responsibilities are not associated with management's functions?

Accepted Answer

A)  Planning 
B)  Accountability 
C)  Controlling 
D)  Directing 
A)  Planning 
B)  Accountability 
C)  Controlling 
D)  Directing

Question 6

Gammil Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If direct materials used were $390,000, what was the cost of raw materials purchased?

Accepted Answer

A)  $390,000. 
B)  $420,000. 
C)  $366,000. 
D)  $414,000. 
A)  $390,000. 
B)  $420,000. 
C)  $366,000. 
D)  $414,000.

Question 7

The types of reports prepared in managerial accounting are often ______________-purpose reports prepared for a specific decision.

Accepted Answer

The answer of The types of reports prepared in managerial...

Question 8

If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

Accepted Answer

A) True 
 B)False

Question 9

Benson Manufacturing Inc.'s accounting records reflect the following inventories:   During 2010, Benson purchased $860,000 of raw materials, incurred direct labor costs of $200,000, and incurred manufacturing overhead totaling $128,000.
How much is raw materials transferred to production during 2010 for Benson Manufacturing?

Accepted Answer

A)  $1,192,000 
B)  $976,000 
C)  $960,000 
D)  $944,000 
A)  $1,192,000 
B)  $976,000 
C)  $960,000 
D)  $944,000

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

Finished Goods Inven

Question 12

Property taxes on a manufacturing plant are an element of a

Accepted Answer

The answer of Property taxes on a manufacturing plant are...

Question 13

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 14

Dolan Manufacturing Company's accounting records reflect the following inventories:   During 2010, $400,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000.
If Dolan Manufacturing Company's cost of goods manufactured for 2010 amounted to $1,190,000, its cost of goods sold for the year is

Accepted Answer

A)  $1,300,000. 
B)  $1,050,000. 
C)  $1,150,000. 
D)  $1,230,000. 
A)  $1,300,000. 
B)  $1,050,000. 
C)  $1,150,000. 
D)  $1,230,000.

Question 15

Management accountants would not

Accepted Answer

A)  assist in budget planning. 
B)  prepare reports primarily for external users. 
C)  determine cost behavior. 
D)  be concerned with the impact of cost and volume on profits. 
A)  assist in budget planning. 
B)  prepare reports primarily for external users. 
C)  determine cost behavior. 
D)  be concerned with the impact of cost and volume on profits.

Question 16

In an analogous sense, external user is to internal user as generally accepted accounting principles are to

Accepted Answer

A)  timely. 
B)  special-purpose. 
C)  relevance to decision. 
D)  SEC. 
A)  timely. 
B)  special-purpose. 
C)  relevance to decision. 
D)  SEC.

Question 17

The reporting standard for external financial reports is

Accepted Answer

A)  industry-specific. 
B)  company-specific. 
C)  generally accepted accounting principles. 
D)  department-specific. 
A)  industry-specific. 
B)  company-specific. 
C)  generally accepted accounting principles. 
D)  department-specific.

Exam 19: Managerial Accounting

Cost of goods sold

Financial statements for external users can be described as

Period costs are not inventoriable costs.

What is work in process inventory generally described as?

What activities and responsibilities are not associated with management's functions?

Gammil Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If direct materials used were $390,000, what was the cost of raw materials purchased?

The types of reports prepared in managerial accounting are often ______________-purpose reports prepared for a specific decision.

If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

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

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

Property taxes on a manufacturing plant are an element of a

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

Management accountants would not

In an analogous sense, external user is to internal user as generally accepted accounting principles are to

The reporting standard for external financial reports is

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 Analysis: the Big Picture

Job Order Costing

Process Costing

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Filters

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