question

Managerial accounting is applicable to

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service entities, manufacturing entities, and not-for-profit entities. (all of these)

question

For a manufacturing company, which of the following is an example of a period cost rather than a product cost?

answer

Wages of salespersons

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Which one of the following would not be classified as manufacturing overhead?

answer

Direct materials

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Managerial accounting applies to each of the following types of businesses except

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Managerial accounting applies to all types of firms.

question

Which of the following statements about internal reports is not true?

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Most internal reports are summarized rather than detailed.

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The managerial function of controlling

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includes performance evaluation by management.

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A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n)

answer

indirect material.

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Cotter pins and lubricants used irregularly in a production process are classified as

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indirect materials.

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What is "balanced" in the balanced scorecard approach?

answer

The emphasis on financial and non-financial performance measurements

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The subtotal, "Cost of goods manufactured" appears on

answer

a manufacturing company's income statement.

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In determining whether planned goals are being met, a manager is performing the function of

answer

controlling

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Which one of the following costs would not be inventoriable?

answer

Period costs

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Both direct materials and indirect materials are

answer

raw materials.

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On the costs of goods manufactured schedule, depreciation on factory equipment

answer

appears in the manufacturing overhead section.

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Product costs are also called

answer

inventoriable costs.

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The major reporting standard for presenting managerial accounting information is

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relevance

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Manufacturing costs include

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direct materials, direct labor, and manufacturing overhead.

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A distinguishing feature of managerial accounting is

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very detailed reports.

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Internal reports must be communicated

answer

as needed

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The function that pertains to keeping the activities of the enterprise on track is

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controlling

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Which one of the following does not appear on the balance sheet of a manufacturing company?

answer

Cost of goods manufactured

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Financial and managerial accounting are similar in that both

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deal with the economic events of an enterprise

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If the total manufacturing costs are greater than the cost of goods manufactured, which of the following is correct?

answer

Work in Process Inventory has increased.

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Managerial accounting information is generally prepared for

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managers

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Managerial accounting does not encompass

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calculating earnings per share.

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Managerial accounting information

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pertains to subunits of the entity and may be very detailed.

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What is work in process inventory generally described as

answer

Costs applicable to units that have been started in production but are only partially completed

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Manufacturing costs that cannot be classified as either direct materials or direct labor are known as

answer

manufacturing overhead.

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

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direct labor.

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For inventoriable costs to become expenses under the matching principle,

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the product to which they attach must be sold.

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Internal reports are generally

answer

detailed

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Which one of the following characteristics would likely be associated with a just-in-time inventory method?

answer

Minimal finished goods inventory on hand

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The wages of a timekeeper in the factory would be classified as

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indirect labor.

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Which of the following is not classified as direct labor?

answer

Wages of supervisors

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What is "balanced" in the balanced scorecard approach?

answer

The emphasis on financial and non-financial performance measurements

question

The principal difference between a merchandising and a manufacturing income statement is the

answer

cost of goods sold section.

question

Many companies now focus on reducing defects in finished products with the goal of zero defects. This is called

answer

Total quality management.

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The equivalent of finished goods inventory for a merchandising firm is referred to as

answer

merchandise inventory.

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A manufacturing company reports cost of goods manufactured as a(n)

answer

component in the calculation of cost of goods sold on the income statement.

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Product costs consist of

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direct materials, direct labor, and manufacturing overhead.

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As inventoriable costs expire, they become

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cost of goods sold.

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Which of the following is not a management function?

answer

Constraining

question

Which of the following is not an internal user?

answer

Creditor

ACCT 472.21 Ch. 15 – Flashcards

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