Question 1

The management function that requires managers to look ahead and establish objectives is

Accepted Answer

A)   controlling.
B)   directing.
C)   planning.
D)   constraining.E) A) and C)
F) B) and C)

Question 2

Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.

Accepted Answer

A) True 
 B)False

Question 3

Period costs include selling and administrative expenses.

Accepted Answer

A) True 
 B)False

Question 4

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 costsE) A) and B)
F) None of the above

Question 5

Indirect materials and indirect labor are both inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 6

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.E) All of the above
F) A) and B)

Question 7

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.E) C) and D)
F) None of the above

Question 8

Property taxes on a manufacturing plant are an element of a $\begin{array}{lll}&\text { Product Cost }&\text { Period Cost }\
\text { a. } & \text { Yes } & \text { No } \
\text { b. } & \text { Yes } & \text { Yes } \
\text { c. } & \text { No } & \text { Yes } \
\text { d. } & \text { No } & \text { No }
\end{array}$

Accepted Answer

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

Question 9

Managerial accounting information

Accepted Answer

A)   pertains to the entity as a whole and is highly aggregated.
B)   pertains to subunits of the entity and may be very detailed.
C)   is prepared only once a year.
D)   is constrained by the requirements of generally accepted accounting principles.E) B) and D)
F) A) and D)

Question 10

Sales commissions are classified as

Accepted Answer

A)   overhead costs
B)   period costs.
C)   product costs.
D)   indirect labor.E) All of the above
F) A) and B)

Question 11

Both direct labor cost and indirect labor cost are product costs.

Accepted Answer

A) True 
 B)False

Question 12

Managerial accounting is primarily concerned with managers and external users.

Accepted Answer

A) True 
 B)False

Question 13

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.E) A) and B)
F) A) and C)

Question 14

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.E) All of the above
F) A) and B)

Question 15

A distinguishing feature of managerial accounting is

Accepted Answer

A)   external users.
B)   general-purpose reports.
C)   very detailed reports.
D)   quarterly and annual reports.E) A) and D)
F) All of the above

Question 16

Period costs are not inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 17

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.E) None of the above
F) C) and D)

Question 18

Edmiston Company reported the following year-end information: beginning work in process inventory, $80,000; cost of goods manufactured, $750,000; beginning finished goods inventory, $50,000; ending work in process inventory, $70,000; and ending finished goods inventory, $40,000. How much is Edmiston's cost of goods sold for the year?

Accepted Answer

A)   $750,000
B)   $760,000
C)   $740,000
D)   $770,000E) B) and C)
F) A) and C)

Question 19

How have many companies significantly lowered inventory levels and costs?

Accepted Answer

A)   They use activity-based costing.
B)   They utilize a balanced scorecard system.
C)   They have a just-in-time method.
D)   They focus on total quality management.E) B) and C)
F) All of the above

Question 20

For the work of factory employees to be considered as direct labor, the work must be conveniently and

Accepted Answer

A)   materially associated with raw materials conversion.
B)   periodically associated with raw materials conversion.
C)   physically associated with raw materials conversion.
D)   promptly associated with raw materials conversion.E) B) and C)
F) A) and B)

Exam 15: Managerial Accounting

Period costs are not inventoriable costs.

Correct Answer
verified

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

Correct Answer
verified

For the work of factory employees to be considered as direct labor, the work must be conveniently and

Correct Answer
verified

How have many companies significantly lowered inventory levels and costs?

Correct Answer
verified

Correct Answer
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The management function that requires managers to look ahead and establish objectives is

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

A distinguishing feature of managerial accounting is

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Managerial accounting is primarily concerned with managers and external users.

Correct Answer
verified

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

Correct Answer
verified

Product costs consist of

Correct Answer
verified

Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.

Correct Answer
verified

Both direct labor cost and indirect labor cost are product costs.

Correct Answer
verified

Indirect materials and indirect labor are both inventoriable costs.

Correct Answer
verified

Managerial accounting information

Correct Answer
verified

Sales commissions are classified as

Correct Answer
verified

Period costs include selling and administrative expenses.

Correct Answer
verified

Exam 15: Managerial Accounting

Period costs are not inventoriable costs.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

For the work of factory employees to be considered as direct labor, the work must be conveniently and

Correct AnswerverifiedShow Answer

How have many companies significantly lowered inventory levels and costs?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The management function that requires managers to look ahead and establish objectives is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A distinguishing feature of managerial accounting is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Managerial accounting is primarily concerned with managers and external users.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Product costs consist of

Correct AnswerverifiedShow Answer

Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.

Correct AnswerverifiedShow Answer

Both direct labor cost and indirect labor cost are product costs.

Correct AnswerverifiedShow Answer

Indirect materials and indirect labor are both inventoriable costs.

Correct AnswerverifiedShow Answer

Managerial accounting information

Correct AnswerverifiedShow Answer

Sales commissions are classified as

Correct AnswerverifiedShow Answer

Period costs include selling and administrative expenses.

Correct AnswerverifiedShow Answer

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