Question 1

Planning is a function that involves

Accepted Answer

A)  hiring the right people for a particular job. 
B)  coordinating the accounting information system. 
C)  setting goals and objectives for an entity. 
D)  analyzing financial statements. 
A)  hiring the right people for a particular job. 
B)  coordinating the accounting information system. 
C)  setting goals and objectives for an entity. 
D)  analyzing financial statements.

Question 2

Raynor Manufacturing Company has the following data:
Instructions
Compute (a) total manufacturing costs and (b) cost of goods manufactured.

Accepted Answer

The answer of Raynor Manufacturing Company has the following data:
Instructions
Compute...

Question 3

The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity.

Accepted Answer

A) True 
 B)False

Question 4

The following costs and inventory data were taken from the accounts of Simon Company for 2010:   
Instructions 
a. Prepare a schedule showing the amount of direct materials used in production during the year.
b. Compute the amount of manufacturing overhead incurred during the year.
c. Prepare a schedule of Cost of Goods Manufactured for Simon Company for the year ended December 31, 2010 in good form.
d. Prepare the Cost of Goods Sold section of the Income Statement for Simon Company for the year ended December 31, 2010 in good form.

Accepted Answer

The answer of The following costs and inventory data were...

Question 5

On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n)

Accepted Answer

A)  addition to raw materials purchases. 
B)  addition to raw materials available for use. 
C)  subtraction from raw materials available for use. 
D)  subtraction from raw materials purchases. 
A)  addition to raw materials purchases. 
B)  addition to raw materials available for use. 
C)  subtraction from raw materials available for use. 
D)  subtraction from raw materials purchases.

Question 6

Which of the following is not an internal user?

Accepted Answer

A)  Creditor 
B)  Department manager 
C)  Controller 
D)  Treasurer 
A)  Creditor 
B)  Department manager 
C)  Controller 
D)  Treasurer

Question 7

Kwik Delivery Service reports the following costs and expenses in June 2010.   
Instructions
Determine the total amount of (a) delivery service (product) costs and (b) period costs.

Accepted Answer

The answer of Kwik Delivery Service reports the following costs...

Question 8

The work of factory employees that can be physically and directly associated with converting raw materials into products is classified as ______________.

Accepted Answer

The answer of The work of factory employees that can...

Question 9

For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to

Accepted Answer

A)  cost of goods purchased. 
B)  cost of goods manufactured. 
C)  net purchases. 
D)  total manufacturing costs. 
A)  cost of goods purchased. 
B)  cost of goods manufactured. 
C)  net purchases. 
D)  total manufacturing costs.

Question 10

In alphabetical order below are current asset items for Sudler Company as of December 31, 2010. Prepare the current assets section of the company's balance sheet as of the same date.

Accepted Answer

The answer of In alphabetical order below are current asset...

Question 11

Each of the manufacturing cost components is a ______________ cost.

Accepted Answer

The answer of Each of the manufacturing cost components is...

Question 12

Which of the following is not another name for the term manufacturing overhead?

Accepted Answer

A)  Factory overhead 
B)  Pervasive costs 
C)  Burden 
D)  Indirect manufacturing costs 
A)  Factory overhead 
B)  Pervasive costs 
C)  Burden 
D)  Indirect manufacturing costs

Question 13

The managerial function of controlling

Accepted Answer

A)  is performed only by the controller of a company. 
B)  is only applicable when the company sustains a loss. 
C)  is concerned mainly with operating a manufacturing segment. 
D)  includes performance evaluation by management. 
A)  is performed only by the controller of a company. 
B)  is only applicable when the company sustains a loss. 
C)  is concerned mainly with operating a manufacturing segment. 
D)  includes performance evaluation by management.

Question 14

Walker Manufacturing Company reported the following year-end information:   How much is Walker Manufacturing's cost of goods manufactured for the year?

Accepted Answer

A)  $734,000 
B)  $1,074,000 
C)  $1,070,000 
D)  $1,078,000 
A)  $734,000 
B)  $1,074,000 
C)  $1,070,000 
D)  $1,078,000

Question 15

For inventoriable costs to become expenses under the matching principle,

Accepted Answer

A)  the product must be finished and in stock. 
B)  the product must be expensed based on its percentage-of-completion. 
C)  the product to which they attach must be sold. 
D)  all accounts payable must be settled. 
A)  the product must be finished and in stock. 
B)  the product must be expensed based on its percentage-of-completion. 
C)  the product to which they attach must be sold. 
D)  all accounts payable must be settled.

Question 16

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 17

Raw materials are equal to direct materials minus indirect materials.

Accepted Answer

A) True 
 B)False

Question 18

Match the items in the two columns below by entering the appropriate code letter in the space provided.
A. Managerial accounting F. Work in process inventory
B. Financial accounting G. Direct materials
C. Planning H. Manufacturing overhead
D. Directing I. Period costs
E. Controlling J. Value chain
_____ 1. The cost of products that are partially complete.
_____ 2. The function of keeping activities in accordance with plans.
_____ 3. Primarily concerned with internal users and reports pertain to subunits of the entity.
_____ 4. Materials that can be physically and directly associated with manufacturing a product.
_____ 5. The function of setting goals and objectives.
_____ 6. Indirect costs of manufacturing a product.
_____ 7. Primarily concerned with external users and reports pertain to the entity as a whole.
_____ 8. Costs that are noninventoriable.
_____ 9. All activities associated with providing a product or service.
_____ 10. The function of coordinating diverse activities to produce a smooth-running operation.

Accepted Answer

1. F 6. H
2. E 7. B

Question 19

Product costs consist of

Accepted Answer

A)  direct materials and direct labor only. 
B)  direct materials, direct labor, and manufacturing overhead. 
C)  selling and administrative expenses. 
D)  period costs. 
A)  direct materials and direct labor only. 
B)  direct materials, direct labor, and manufacturing overhead. 
C)  selling and administrative expenses. 
D)  period costs.

Question 20

Planning involves coordinating the diverse activities and human resources of a company to produce a smooth running operation.

Accepted Answer

A) True 
 B)False

Exam 19: Managerial Accounting

Planning is a function that involves

Raynor Manufacturing Company has the following data: Instructions Compute (a) total manufacturing costs and (b) cost of goods manufactured.

The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity.

On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n)

Which of the following is not an internal user?

Kwik Delivery Service reports the following costs and expenses in June 2010. Instructions Determine the total amount of (a) delivery service (product) costs and (b) period costs.

The work of factory employees that can be physically and directly associated with converting raw materials into products is classified as ______________.

For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to

In alphabetical order below are current asset items for Sudler Company as of December 31, 2010. Prepare the current assets section of the company's balance sheet as of the same date.

Each of the manufacturing cost components is a ______________ cost.

Which of the following is not another name for the term manufacturing overhead?

The managerial function of controlling

Walker Manufacturing Company reported the following year-end information: How much is Walker Manufacturing's cost of goods manufactured for the year?

For inventoriable costs to become expenses under the matching principle,

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

Raw materials are equal to direct materials minus indirect materials.

Product costs consist of

Planning involves coordinating the diverse activities and human resources of a company to produce a smooth running operation.

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