Question 1

If the report is urgently needed,it is sometimes necessary to sacrifice accuracy in the interest of

Accepted Answer

A) timeliness 
B) personal feelings. 
C) profits. 
D) expectations. 
A) timeliness 
B) personal feelings. 
C) profits. 
D) expectations. A

Question 2

A production cost is classified as an overhead cost if it is not directly traceable to an end product or a cost object.

Accepted Answer

A) True 
 B)False  True

Question 3

Primary users of managerial accounting include governmental agencies.

Accepted Answer

A) True 
 B)False  False

Question 4

Management accountants working in purchasing department must decline gifts from company vendors;because this might influence,or be perceived as influencing their performance or decision analyses.

Accepted Answer

A) True 
 B)False

Question 5

The costs of labor for maintenance and inspections are examples of direct labor.

Accepted Answer

A) True 
 B)False

Question 6

From Jolier's year-end income statement,you observe that the finished goods inventory has doubled during the year.This would indicate that during the year Jolier

Accepted Answer

A) sold more goods than were produced. 
B) produced more goods than last year. 
C) produced more goods than were sold. 
D) sold more goods than last year. 
A) sold more goods than were produced. 
B) produced more goods than last year. 
C) produced more goods than were sold. 
D) sold more goods than last year.

Question 7

As units are completed,their costs are transferred from the Materials Inventory account to the Finished Goods Inventory account.

Accepted Answer

A) True 
 B)False

Question 8

When there is an ethical conflict,the management accountant should resign if the immediate supervisor is involved in the conflict.

Accepted Answer

A) True 
 B)False

Question 9

The overall guideline or limit for management accounting information is that the report or analysis must be meaningful and must answer the questions or issues under review.

Accepted Answer

A) True 
 B)False

Question 10

The unit of measurement used in management accounting reports is

Accepted Answer

A) primarily the historical dollar. 
B) usually current replacement cost. 
C) any measurement unit that is useful in a particular situation. 
D) the measurement unit used by competing companies. 
A) primarily the historical dollar. 
B) usually current replacement cost. 
C) any measurement unit that is useful in a particular situation. 
D) the measurement unit used by competing companies.

Question 11

The management accountant must be knowledgeable about all relevant laws,regulations,and technical standards that pertain to his or her duties.

Accepted Answer

A) True 
 B)False

Question 12

Sorrel Pharmaceuticals Corporation manufactures a variety of drugs that are marketed internationally.Inventories on May 31 and June 30 were as follows:
  Purchases of materials for June were $142,600.Direct labor costs were incurred and computed on the basis of 27,000 hours at $8 per hour.Actual overhead costs incurred in June were as follows: operating supplies used,$5,700;janitorial and materials handling labor,$38,100;employee benefits,$110,800;heat,light,and power,$50,000;factory depreciation,$8,400;property taxes,$8,000;and expired portion of insurance premiums,$12,000.Net sales for June were $992,700.Selling and administrative expenses were $165,000.
Prepare a statement of cost of goods manufactured for the month ended June 30.

Accepted Answer

The answer of Sorrel Pharmaceuticals Corporation manufactures a variety of...

Question 13

Which of the following labor costs would be included in direct labor?

Accepted Answer

A) Maintenance workers 
B) Machine operators 
C) Managers and supervisors 
D) Materials storeroom custodian 
A) Maintenance workers 
B) Machine operators 
C) Managers and supervisors 
D) Materials storeroom custodian

Question 14

The terms total manufacturing costs and total cost of goods manufactured are synonymous.

Accepted Answer

A) True 
 B)False

Question 15

Financial accounting relies on the criterion of usefulness rather than formal guidelines in reporting information.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is true of financial and managerial accounting?

Accepted Answer

A) Both use historical costs as their primary unit of measurement. 
B) Both depend on the double-entry system of accounting. 
C) Both require adherence to generally accepted accounting principles. 
D) Both assist managers in decision making. 
A) Both use historical costs as their primary unit of measurement. 
B) Both depend on the double-entry system of accounting. 
C) Both require adherence to generally accepted accounting principles. 
D) Both assist managers in decision making.

Question 17

Property taxes and equipment depreciation are examples of indirect manufacturing costs.

Accepted Answer

A) True 
 B)False

Question 18

The reporting format of financial accounting information is based on generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 19

Management accounting information is objective and verifiable for decision making.

Accepted Answer

A) True 
 B)False

Question 20

Management accounting information demands more objectivity than financial accounting information.

Accepted Answer

A) True 
 B)False

Exam 17: Managerial Accounting and Cost Concepts

If the report is urgently needed,it is sometimes necessary to sacrifice accuracy in the interest of

A production cost is classified as an overhead cost if it is not directly traceable to an end product or a cost object.

Primary users of managerial accounting include governmental agencies.

Management accountants working in purchasing department must decline gifts from company vendors;because this might influence,or be perceived as influencing their performance or decision analyses.

The costs of labor for maintenance and inspections are examples of direct labor.

From Jolier's year-end income statement,you observe that the finished goods inventory has doubled during the year.This would indicate that during the year Jolier

As units are completed,their costs are transferred from the Materials Inventory account to the Finished Goods Inventory account.

When there is an ethical conflict,the management accountant should resign if the immediate supervisor is involved in the conflict.

The overall guideline or limit for management accounting information is that the report or analysis must be meaningful and must answer the questions or issues under review.

The unit of measurement used in management accounting reports is

The management accountant must be knowledgeable about all relevant laws,regulations,and technical standards that pertain to his or her duties.

Which of the following labor costs would be included in direct labor?

The terms total manufacturing costs and total cost of goods manufactured are synonymous.

Financial accounting relies on the criterion of usefulness rather than formal guidelines in reporting information.

Which of the following statements is true of financial and managerial accounting?

Property taxes and equipment depreciation are examples of indirect manufacturing costs.

The reporting format of financial accounting information is based on generally accepted accounting principles.

Management accounting information is objective and verifiable for decision making.

Management accounting information demands more objectivity than financial accounting information.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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