Question 1

Inventory which is partially complete is known as

Accepted Answer

work in process

Question 2

Production activities include

Accepted Answer

using materials, incurring overhead costs, production workers assembling products

Question 3

A company reports Cost of goods manufactured of $50,000 on the statement of cost of goods manufactured. If the beginning balance in Work in process inventory was 20,000 and the ending balance was 25,000, then the total manufacturing costs were ______.

Accepted Answer

manufacturing costs + beginning work in process inventory - ending work in process inventory = costs of goods manufactured; (20,000) + 25,000 + 50,000 = 55,000

Question 4

Consider a company that manufactures picture frames. Which of the following costs would be considered direct materials? Oak wood used for frame, wage of assembly line worker, salary of production supervisor, glass used in frame

Accepted Answer

Oak wood used for frame, glass used in frame

Question 5

Managerial accounting is different from financial accounting in that

Accepted Answer

managerial accounting is used in making planning and control decisions and financial accounting is used primarily in making credit decisions

Question 6

Partially complete inventory is known as...

Accepted Answer

work in process

Question 7

A schedule of cost of goods manufactured has the following main sections:

Accepted Answer

Direct materials, overhead, computation of cost of goods manufactured, direct labor

Question 8

The main purpose of managerial accounting is similiar to the main purpose of financial accounting. T/F

Accepted Answer

True

Question 9

A manufacturing company reports the following items:   Finished goods inventory, beginning balance: $1000  Finished goods inventory, ending balance: $1200  Cost of goods manufactured: $5000  The cost of goods sold is: $_______

Accepted Answer

1000+5000-1200 = 4800

Question 10

Conversion costs consist of:

Accepted Answer

factory overhead and direct labor

Question 11

The institute of management accountants\' statement of ethical professional practice requires members to:

Accepted Answer

act with integrity and be competent

Question 12

Activities such as using materials and labor to produce finished products are considered ___________ activities

Accepted Answer

production

Question 13

List the following in the order in which they occur, with the first activity on top. (Sales activity, production activity, materials activity)

Accepted Answer

materials activity, production activity, sales activity

Question 14

The main focus of managerial accounting is providing

Accepted Answer

specific information

Question 15

The managerial accountant at ABC company has reported that the inventory records do not match the actual inventory count. Management is concerned that the missing inventory is due to employee theft. To help prevent this, management should:

Accepted Answer

adopt a code of ethics, verify inventory records, review the inventory handling procedures

Question 16

Consider the production department of a manufacturer of laptop computers. Classify the cost of the factory maintenance manager\'s salary

Accepted Answer

Fixed, indirect, product

Question 17

A period cost is

Accepted Answer

expensed when incurred

Question 18

Activities such as purchasing and storing raw materials are considered ____________ activities

Accepted Answer

materials

Question 19

Managerial accounting has which characteristics?

Accepted Answer

internal users, monetary and nonmonetary information, emphasis on projects, processes and subdivisions

Question 20

Those who work directly on the product to convert to raw materials into a finished product are known as

Accepted Answer

direct labor

Question 21

In what order do these activities occur (distribution, production, marketing, design, service)?

Accepted Answer

Design, production, marketing, distribution, service

Question 22

materials activities include

Accepted Answer

storing and purchasing materials

Question 23

Managers use an internal control system to:

Accepted Answer

promote efficient operations, protect assets, ensure reliable accounting

Question 24

The managerial accountant at XYZ company told her friend that the company expects to announce a major recall in a few weeks. The friend promptly sells all her stock in XYZ. The accountant violated which IMA statement of ethical professional practice standards?

Accepted Answer

Confidentiality and integrity

Question 25

The primary difference between the income statement for a merchandising company and a manufacturing company is in the ______ section.

Accepted Answer

cost of goods sold

Question 26

Managerial accounting systems report both monetary and nonmonetary information. Examples of nonmonetary information include the

Accepted Answer

quality of purchase decisions

Question 27

The following items would be included in the overhead section of the schedule of cost of goods manufactured

Accepted Answer

factory insurance, factory supplies used, factory utilities

Question 28

Which of the following are indirect costs for the finishing department of a furniture manufacturing plant?

Accepted Answer

plant managers salary, rent on the manufacturing facility, electricity cost for the plant

Question 29

Direct and indirect materials are known as

Accepted Answer

raw materials

Question 30

A series of activities that add value to a company\'s products or services is called

Accepted Answer

value chain

Question 31

A company reported Cost of Goods manufactured of $55,000 on the manufacturing statement. If the beginning work in process inventory was $5000 and total manufacturing costs were 60,000, then the ending balance work in process inventory was ________.

Accepted Answer

Manufacturing costs + beginning work in process inventory - ending work in process inventory = cost of goods manufactured; 60,000 + 5,000 - ending work in process inventory = 55,000; = 10,000

Question 32

Which of the following are product costs for a manufacturer?

Accepted Answer

Direct materials, depreciation on the factory equipment

Question 33

Production activities include:

Accepted Answer

using materials, production workers assembling products, incurring overhead costs

Question 34

A company began the year with $500 in raw materials and purchased 10,250 more during the year. If the company has $725 in raw materials at the end of the year, the they would report direct materials used of $ ______ on the schedule of cost of goods manufactured.

Accepted Answer

500 +10,250 - 725 = 10,025

Question 35

The main difference between merchandising companies is that merchandising companies ________ (buy/produce) goods ready for sale and manufacturing companies _______ (buy/produce) goods.

Accepted Answer

buy, produce

Question 36

Managerial accounting has which of the following characteristics?

Accepted Answer

monetary and nonmonetary information, internal users, emphases on projects, processes and subdivisions

Question 37

Consider the production department of a manufacturer of laptop computers. Classify the cost of the processor chips.

Accepted Answer

direct, product, variable

Question 38

Which of the following are direct costs for the shoe department at a local department

Accepted Answer

cost of manager, show department manager\'s salary

Question 39

True or false: the main purpose of managerial accounting is to provide general-purpose financial statements

Accepted Answer

false

Question 40

Direct materials for an automobile manufacturer would include all of the following:

Accepted Answer

steering wheels, bumpers, tires

Question 41

understanding the changing needs of customers is referred to as:

Accepted Answer

customer orientation

Question 42

Classify the cost of hourly workers who clean carpets for customers

Accepted Answer

variable, direct

Question 43

Activities such as selling and storing finished products are considered

Accepted Answer

sales activities

Question 44

True/false: factory overhead are all manufacturing costs except direct materials and direct labor

Accepted Answer

true

Question 45

T/F: Finished goods are products which are partially complete

Accepted Answer

false

Question 46

Examples of managerial non monetary information includes the:

Accepted Answer

quality of purchase decisions

Question 47

Which of the following are fixed costs relative to the number of units produced and sold?

Accepted Answer

store rent, manager\'s salary, straight-line depreciation

Question 48

What characteristics describe managerial accounting?

Accepted Answer

used to making planning and control decisions, many projections and estimates

Question 49

What types of information does managerial accounting provide?

Accepted Answer

internal, financial, non-financial

Question 50

The efforts of employees who work directly to convert direct materials into the finished product are referred to as

Accepted Answer

direct labor

Question 51

Those who work directly on the product to convert raw materials into a finished product are known as

Accepted Answer

direct labor

Question 52

TQM

Accepted Answer

evaluating business activities with a focus on improving activity

Question 53

JIT manufacturing

Accepted Answer

establishing better relationships with vendors to ensure on-time delivery quality raw materials

Question 54

E-commerce

Accepted Answer

updating the company\'s website to promote online sales transactions

Question 55

customer orientation

Accepted Answer

survey customers to better align operating practices with their expectations

Question 56

Lean practices include those which are designed to eliminate waste while still satisfying the customer. Examples of lean practices include all of the following:

Accepted Answer

JIT manufacturing, continuous improvement, total quality management

Question 57

The following items would be included in the overhead section of the schedule of cost of goods manufactured:

Accepted Answer

factory utilities, factory supplies used, factory insurance

Question 58

The inventory account used by manufacturing companies to record costs of completed products ready for sale is called

Accepted Answer

finished goods inventory

Question 59

A merchandising company usually has ______ inventory account. A manufacturing company usually has ____ inventory accounts.

Accepted Answer

1, 3

Question 60

Prime costs consist of

Accepted Answer

direct labor and direct materials

Question 61

Raw materials inventory includes

Accepted Answer

direct and indirect materials

Question 62

Major manufacturing company has direct materials used of $50,000, beginning raw materials inventory of $10,000 and ending raw materials inventory of $8,000. Compute the raw materials inventory turnover

Accepted Answer

5.55

Question 63

Sales activities include:

Accepted Answer

storing finished products, selling finished products

Question 64

Which of the following are inventory accounts commonly found in manufacturing companies?

Accepted Answer

Raw materials inventory, work in process inventory, finished goods inventory

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