Accounting Chapter 16 – Managerial Accounting Concepts and Principles – Flashcards
Unlock all answers in this set
Unlock answersquestion
Financial accountants provide information to
the general public.
the creditors.
All of these choices are correct.
the stockholders.
answer
All of these choices are correct.
Feedback: Financial accountants provide information to stockholders, creditors, and the general public
question
Which of the following is not one of the five phases in the management process?
analyzing
improving
decision making
planning
answer
analyzing
Feedback: Analysis is important in accounting; however, it is not one of the five phases of the management process.
question
Which of the following is one of the five phases in the management process?
analyzing
reconciling
decision making
budgeting
answer
decision making
Feedback: The five phases of the management process are planning, directing, controlling, improving, and decision making
question
Which of the following would be classified as a factory overhead cost by a baking company?
depreciation of factory equipment
depreciation of office equipment
strawberries
freight in
answer
depreciation of factory equipment
Feedback: Correct. Costs, other than direct materials and direct labor, that are incurred in the manufacturing process are combined and classified as factory overhead cost.
question
Which of the following would be classified as an indirect cost by a baking company?
salaries of production supervisors
flour
salaries of bakers
frosting
answer
salaries of production supervisors
Feedback: Indirect costs are not directly attributed to the cost object.
question
Which one of the following positions would have salaries or wages that are classified as a factory overhead cost by a baking company?
baker
factory supervisor
salesman
president of the company
answer
factory supervisor
Feedback: Costs, other than direct materials and direct labor, that are incurred in the manufacturing process are combined and classified as factory overhead cost.
question
Which one of the following is the correct formula for determining cost of goods manufactured?:
beginning work in process inventory - total manufacturing costs + ending work in process inventory
ending work in process inventory - total manufacturing costs - beginning work in process inventory
ending work in process inventory + total manufacturing costs + beginning work in process inventory
beginning work in process inventory + total manufacturing costs - ending work in process inventory
answer
beginning work in process inventory + total manufacturing costs - ending work in process inventory
Feedback: The formula for cost of goods manufactured is as follows: beginning work in process inventory + total manufacturing costs - ending work in process inventory.
Objective Association
question
A balance sheet for a manufacturing company includes all of the following inventories except
work in process.
direct labor.
finished goods.
materials.
answer
direct labor.
Feedback: The balance sheet of a manufacturing company includes three inventory accounts in the assets section including materials inventory.
question
Ralph's Cafe Company has the following information for June.
Cost of materials placed in production $45,000
Direct labor 20,000
Factory overhead 14,000
Work in process inventory, June 1 2,900
Work in process inventory, June 30 3,500
What is the costs of goods manufactured?
$75,500
$81,900
$79,000
$78,400
answer
$78,400
Feedback: Correct.
Work in process inventory, June 1 $2,900
Cost of materials placed in production $45,000
Direct labor 20,000
Factory overhead 14,000
Total manufacturing costs incurred 79,000
Total manufacturing costs 81,900
Less: Work in process inventory June 30 3,500
Cost of goods manufactured $78,400
question
Which of the following would probably not be determined using managerial accounting reports?
the manufacturing cost of each item produced
the amount of employee downtime
earnings per share
the efficiency of purchasing new equipment to speed up the production process
answer
earnings per share
Feedback: Managerial reports provide data that help managers evaluate the performance of the company's operations. Earnings per share is an important figure determined for financial reporting.
question
A company will use managerial reports to
determine product selling prices.
reduce direct labor costs.
All of these choices are correct.
determine spoilage.
answer
All of these choices are correct.
Feedback: Managers need information from managerial accounting reports to guide their decision making regarding all aspects of company operations.
question
A company will use managerial reports to
consider computerized manufacturing processes.
determine actual product costs.
All of these choices are correct.
estimate product costs.
answer
Feedback: Managers need information from managerial accounting reports to guide their decision making regarding all aspects of the company.
question
The total manufacturing costs incurred is determined using all of the following except:
direct labor.
factory overhead.
selling expenses.
direct materials used in production.
answer
selling expenses.
Feedback: Correct. Costs for delivering the product to the customer are classified as selling expenses
