question

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

answer

False

question

Managerial accounting applies to all forms of business organizations.

answer

True

question

Determining the unit cost of manufacturing a product is an output of financial accounting.

answer

False

question

Managerial accounting internal reports are prepared more frequently than are classified financial statements.

answer

True

question

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

answer

False

question

The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company.

answer

False

question

Controlling is the process of determining whether planned goals are being met.

answer

True

question

Decision-making is an integral part of the planning, directing, and controlling functions.

answer

True

question

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

answer

True

question

Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

answer

True

question

Raw materials are equal to direct materials minus indirect materials.

answer

False

question

Raw materials that can be conveniently and directly associated with a finished product are called materials overhead.

answer

False

question

The total cost of a finished product does not generally contain equal amounts of materials, labor, and overhead costs.

answer

True

question

Direct materials costs and indirect materials costs are manufacturing overhead. Period costs include selling and administrative expenses.

answer

False

question

Indirect materials and indirect labor are both inventoriable costs.

answer

True

question

Direct materials and direct labor are the only product costs.

answer

True

question

Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.

answer

False

question

Period costs are not inventoriable costs.

answer

False

question

Ending finished goods inventory appears on both the balance sheet and the income statement of a manufacturing company.

answer

True

question

The beginning work in process inventory appears on both the balance sheet and the cost of goods manufactured schedule of manufacturing company.

answer

True

question

In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales.

answer

False

question

Finished goods inventory does not appear on a cost of goods manufactured schedule.

answer

False

question

If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.

answer

True

question

Finished goods inventory for a manufacturing company is equivalent to merchandise inventory for a merchandising company.

answer

True

question

Raw materials inventory is not an asset until it is used to make a product.

answer

True

question

Raw materials inventory shows the cost of completed goods available for sale to customers.

answer

False

question

The supply chain is all the activities associated with providing a product or service.

answer

False

question

Many companies have significantly lowered inventory levels and costs using just-in-time inventory methods.

answer

True

question

Managerial accounting is primarily concerned with managers and external users.

answer

False

question

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

answer

False

question

When the physical association of raw materials with the finished product is too small to trace in terms of cost, they are usually classified as indirect materials.

answer

True

question

Product costs are also called inventoriable costs.

answer

True

question

Direct materials become a cost of the finished goods manufactured when they are acquired, not when they are used.

answer

False

question

The sum of the direct materials costs, direct labor costs, and beginning work in process is the total manufacturing costs for the year.

answer

False

question

In a manufacturing company balance sheet, manufacturing inventories are reported in the current assets section in the order of their expected use in production.

answer

False

question

Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.

answer

True

True or False – Chap 19 – Flashcards

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