Chapters 1-3 Questions for Managerial Accounting Final – Flashcards

The IMA's Statement o Ethical Professional Practice includes which of the following broad categories? a.) Competence b.) Complexity c.) Malleability d.) All of the above

Managerial Accounting: a.) Has its primary emphasis on the future b.) Focuses on segment reports. c.) Emphasizes timeliness d.) All of the above are correct

A "discretionary cost" is: a.) a cost that cannot be avoided because it has already been incurred. b.) a cost that may be served by not adopting an alternative. c.) a cost that may be cut for short periods of time with minimal damage to the long run goals of the organization. d.) a cost that does not entail any dollar outlay.

A cost that is not a product cost is called a: a.) Direct cost b.) Indirect cost c.) Prime cost d.) Period cost

The range of activity within which is the basic cost structure of a firm can be estimated using the equation for a straight line to determine costs is known as the: a.) Relevant range b.) Economic range c.) Activity range d.) Cost range

Costs that vary in total in production to changes in the level of activity, but are constant on a per unit basis are known as: a.) Constant unit costs b.) Period costs c.) Relevant costs d.) Variable costs

Manufacturing Overhead consists of: a.) All manufacturing costs. b.) All manufacturing costs, except direct materials and direct labor. c.) Indirect labor but not indirect materials. d.) Indirect materials, but not indirect labor.

If the cost of goods sold is less than the cost of goods manufactured, then which of the following must be true?: a.) Work in process inventory has decreased during the period. b.) Finished goods inventory has increased during the period. c.) Total Manufacturing costs must be greater than cost of goods manufactured. d.) Finished goods inventory has decreased during the period.

If overhead is under applied for a period, it means that: a.) The predetermined overhead rate used to apply overhead to WIP was too low. b.) Actual MOH cost incurred is less than overhead cost applied to jobs. c.) The company incurred less overhead cost than it charged to WIP. d.) Cost of Goods sold is probably overstated for the period.

The cost of goods manufactured represents: a.) The amount of cost charged to Work in Process during the period. b.) The amount transferred from WIP to FGI during the period. c.) The amount of cost placed into production during the period. d.) The amount of predetermined overhead included in Work in Process.