Question 1

A manufacturing statement is also known as a schedule or listing of the:

Accepted Answer

A)   Raw materials processed.
B)   Factory supplies used.
C)   Cost of goods manufactured.
D)   Total finished goods.
E)   Cost of goods sold.F) A) and E)
G) A) and D)

Question 2

____________________ is the process of monitoring plans and evaluating an organization's activities and employees.

Accepted Answer

The answer of ____________________ is the process of monitoring plans...

Question 3

One difference between financial and managerial accounting is that the external users that use financial information must plan a company's future, but the internal users of managerial accounting information generally must decide whether to invest in or lend to a company.

Accepted Answer

A) True 
 B)False

Question 4

Direct materials are not usually easily traced to a product.

Accepted Answer

A) True 
 B)False

Question 5

Using the information below, calculate the cost of goods manufactured for the period.

Accepted Answer

A)   $553,000.
B)   $536,000.
C)   $549,000.
D)   $527,000.
E)   $525,000.F) A) and E)
G) B) and C)

Question 6

Newly completed units are combined with beginning finished goods inventory to make up total ending goods in process inventory.

Accepted Answer

A) True 
 B)False

Question 7

Prime costs consist of direct labor and factory overhead.

Accepted Answer

A) True 
 B)False

Question 8

Indirect materials are accounted for as factory overhead because they are not easily traced to specific units or batches of production.

Accepted Answer

A) True 
 B)False

Question 9

____________________ inventory consists of products in the process of being manufactured but not yet complete.

Accepted Answer

Goods in p...

Question 10

Ajax Company accumulated the following account information for the year:  Using the above information, total factory overhead costs would be:

Accepted Answer

A)   $9,800.
B)   $16,800.
C)   $15,800.
D)   $13,000.
E)   $7,800.F) None of the above
G) A) and E)

Question 11

Which of the following costs would not be classified as factory overhead?

Accepted Answer

A)   Property taxes on maintenance machinery.
B)   Expired insurance on factory equipment.
C)   Wages of the factory janitor.
D)   Metal doorknobs used on wood cabinets produced.
E)   Small tools used in production.F) B) and C)
G) All of the above

Question 12

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 13

The Institute of Management Accountants Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

Accepted Answer

A) True 
 B)False

Question 14

The focus of managerial accounting is on providing ________________ reports while the focus of financial accounting is on providing _____________ reports.

Accepted Answer

The answer of The focus of managerial accounting is on...

Question 15

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable.

Accepted Answer

A) True 
 B)False

Question 16

The cost of partially completed products is included in the balance of the Goods in Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 17

With respect to cycle time, companies strive to reduce non-value added time in order to improve ________________________.

Accepted Answer

The answer of With respect to cycle time, companies strive...

Question 18

An employee devises a payroll scheme that costs the employer $150. The employer discovers the fraud but decides not to confront the employee since the amount of the fraud is small. Discuss why this course of action is not advisable.

Accepted Answer

While this particular incident resulted ...

Question 19

A fixed cost:

Accepted Answer

A)   Requires the future outlay of cash and is relevant for future decision making.
B)   Does not change with changes in the volume of activity within the relevant range.
C)   Is directly traceable to a cost object.
D)   Changes with changes in the volume of activity within the relevant range.
E)   Has already been incurred and cannot be avoided so it is irrelevant for decision making.F) A) and B)
G) None of the above

Question 20

An internal control system consists of the policies and procedures managers use to do all of the following except:

Accepted Answer

A)   Urge adherence to company policies.
B)   Promote efficient operations.
C)   Ensure reliable accounting.
D)   Determine pricing for products.
E)   Protect assets.F) B) and E)
G) B) and D)

Exam 18: Managerial Accounting Concepts and Principles

Indirect materials are accounted for as factory overhead because they are not easily traced to specific units or batches of production.

Correct AnswerverifiedShow Answer

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable.

Correct AnswerverifiedShow Answer

The cost of partially completed products is included in the balance of the Goods in Process Inventory account.

Correct AnswerverifiedShow Answer

Newly completed units are combined with beginning finished goods inventory to make up total ending goods in process inventory.

Correct AnswerverifiedShow Answer

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Correct AnswerverifiedShow Answer

Using the information below, calculate the cost of goods manufactured for the period.

Correct AnswerverifiedShow Answer

A manufacturing statement is also known as a schedule or listing of the:

Correct AnswerverifiedShow Answer

Direct materials are not usually easily traced to a product.

Correct AnswerverifiedShow Answer

One difference between financial and managerial accounting is that the external users that use financial information must plan a company's future, but the internal users of managerial accounting information generally must decide whether to invest in or lend to a company.

Correct AnswerverifiedShow Answer

Ajax Company accumulated the following account information for the year: Using the above information, total factory overhead costs would be:

Correct AnswerverifiedShow Answer

With respect to cycle time, companies strive to reduce non-value added time in order to improve ________________________.

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____________________ inventory consists of products in the process of being manufactured but not yet complete.

Correct AnswerverifiedGoods in p...View AnswerShow Answer

A fixed cost:

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An internal control system consists of the policies and procedures managers use to do all of the following except:

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Which of the following costs would not be classified as factory overhead?

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An employee devises a payroll scheme that costs the employer $150. The employer discovers the fraud but decides not to confront the employee since the amount of the fraud is small. Discuss why this course of action is not advisable.

Correct AnswerverifiedWhile this particular incident resulted ...View AnswerShow Answer

Prime costs consist of direct labor and factory overhead.

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The Institute of Management Accountants Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

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The focus of managerial accounting is on providing ________________ reports while the focus of financial accounting is on providing _____________ reports.

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____________________ is the process of monitoring plans and evaluating an organization's activities and employees.

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Goods in p...
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While this particular incident resulted ...
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The focus of managerial accounting is on providing ____ reports while the focus of financial accounting is on providing _ reports.

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