Managerial Accounting Exam 1. – Flashcards
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A job cost record is a document that accumulates direct material costs, direct labor costs and manufacturing overhead costs assigned to each individual job.
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True
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Indirect manufacturing costs should be included in manufacturing overhead.
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True
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Which ethical standard is demonstrated when you attend a class to maintain your professional knowledge?
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Competence
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A restaurant is facing a decision about whether it should bake its own apple pies or whether it should continue to purchase the pies from a local bakery. Which of the following cost would be relevant to its decision?
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The purchase price of the apple pies purchased from the local bakery
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Subtracting the costs of one alternative from the costs of the other alternative would be called the _____ cost.
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differential
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Which of the following value chain elements is associated with the costs of shipping inventory to the retail outlet in a merchandising company?
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Distribution
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Product costs and period costs receive similar treatment when presented in the financial statements.
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False
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The treasurer and the controller report directly to the CFO.
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True
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How often should managerial accounting reports be prepared?
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As often as necessary
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The cost of wages paid to assembly- line workers should be treated as a manufacturing overhead cost.
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True
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The primary goal of financial accounting is to provide information to
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All the above (potential investors, government regulators, creditors)
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Which statement is true?
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All of the above are true
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Which of the following is a characteristic of a service company?
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Service companies generally have no tangible products to sell
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The primary goal of managerial accounting is to provide information to
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internal decision-makers
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Collectively, all costs such as distribution, marketing, and design are part of
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the value chain
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Allocating manufacturing overhead costs is done
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during the period
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When job costing is used at a service firm
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indirect costs are allocated to client jobs
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Manufacturers consider selling and administrative costs to be
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period costs
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Inventorial product costs consist of manufacturing overhead, direct labor and direct materials.
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True
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Which of the following statements is TRUE regarding managerial accounting information?
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Managerial accounting information emphasizes relevance
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Which of the following items could be an example of a cost object?
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All of the above are examples of potential cost objects.
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At a manufacturing company, inventory flows from work in process inventory, to raw materials inventory, to finished goods inventory.
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False
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The financial statements of a merchandiser are more complex than those of a manufacturer.
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False
