question

Define: Managerial accounting

answer

Provides economic and financial information for managers and internal users `

question

What are the three activities managers have?

answer

1. Planning. 2. Directing. 3. Controlling.

question

What is planning?

answer

Choosing goals and deciding how to achieve them

question

What are the three budgets for planning? Describe them?

answer

Profit budget (indicates planned income) Cash flow budget (indicates planned cash inflows and outflows) Production budget (indicates the planned quantity of production and expected costs)

question

What is controlling?

answer

Means implementing the plans and evaluating operations by comparing actual results to the budget.

question

Cost that are indirectly associated with manufacturing a product?

answer

Manufacturing overhead

question

T/F 1. Managerial accountants have a single role within an organization, collecting and reporting costs to management.

answer

False. Managerial accountants determine product costs. In addition, managerial accountants are now held responsible for evaluating how well the company is employ- ing its resources. As a result, when the company makes critical strategic decisions, managerial accountants serve as team members alongside personnel from production, marketing, and engineering.

question

T/F 2. Financial accounting reports are general-purpose and intended for external users.

answer

True

question

T/F 3. Managerial accounting reports are special-purpose and issued as frequently as needed.

answer

True

question

T/F 4. Managers' activities and responsibilities can be classified into three broad functions: cost accounting, budgeting, and internal control.

answer

False.Managers'activitiesareclassifiedintothreebroadfunctions:planning,directing, and controlling. Planning requires managers to look ahead to establish objec- tives. Directing involves coordinating a company's diverse activities and human resources to produce a smooth-running operation. Controlling keeps the company's activities on track.

question

T/F 5. As a result of the Sarbanes-Oxley Act, managerial accounting reports must now comply with generally accepted accounting principles (GAAP).

answer

False. SOX clarifies top management's responsibility for the company's financial statements. In addition, top managers must certify that the company maintains an adequate system of internal control to safeguard the company's assets and ensure accurate financial reports.

question

T/F 6. Top managers must certify that a company maintains an adequate system of internal controls.

answer

True

question

What are the three manufacturing cost?

answer

direct materials, direct labor, manufacturing overhead

question

How do the balance sheet for a merchandising company vary from that of a manufacturer company?

answer

The balance sheet for a merchandising company shows just one category of inventory. In contrast, the balance sheet for a manufacturer may have three inventory accounts (Raw materials, Work in progress, Finished goods)

question

Managerial accounting: (a) is governed by generally accepted accounting principles. (b) places emphasis on special-purpose information. (c) pertains to the entity as a whole and is highly aggregated. (d) is limited to cost data.

answer

b

question

The management of an organization performs several broad functions. They are: (a) planning, directing, and selling. (b) planning, directing, and controlling. (c) planning, manufacturing, and controlling. (d) directing, manufacturing, and controlling.

answer

b

question

After passage of the Sarbanes-Oxley Act: (a) reports prepared by managerial accountants must by audited by CPAs. (b) CEOs and CFOs must certify that financial state- ments give a fair presentation of the company's operating results. (c) the audit committee, rather than top manage- ment, is responsible for the company's financial statements. (d) reports prepared by managerial accountants must comply with generally accepted accounting principles (GAAP).

answer

b

question

Which of the following costs would a computer man- ufacturer include in manufacturing overhead? (a) The cost of the disk drives. (b) The wages earned by computer assemblers. (c) The cost of the memory chips. (d) Depreciation on testing equipment.

answer

d

question

Which of the following is not an element of manufacturing overhead? (a) Sales manager's salary. (b) Plant manager's salary. (c) Factory repairman's wages. (d) Product inspector's salary.

answer

a

question

Indirect labor is a: (a) non manufacturing cost. (b) raw material cost. (c) product cost. (d) period cost.

answer

c (why)

question

Which of the following costs are classified as a period cost? (a) Wages paid to a factory custodian. (b) Wages paid to a production department supervisor. (c) Wages paid to a cost accounting department supervisor. (d) Wages paid to an assembly worker.

answer

c (why)

question

For the year, Redder Company has cost of goods manufactured of $600,000, beginning finished goods inventory of $200,000, and ending finished goods in- ventory of $250,000. The cost of goods sold is: (a) $450,000. (b) $500,000. (c) $550,000. (d) $600,000.

answer

c

question

A cost of goods manufactured schedule shows beginning and ending inventories for: (a) raw materials and work in process only. (b) work in process only. (c) raw materials only. (d) raw materials, work in process, and finished goods.

answer

a

question

The formula to determine the cost of goods manufactured is: (a) Beginning raw materials inventory + Total man ufacturing costs - Ending work in process inventory. (b) Beginning work in process inventory + Total manufacturing costs - Ending finished goods inventory. (c) Beginning finished good inventory + Total manufacturing costs - Ending finished goods inventory. (d) Beginning work in process inventory + Total manufacturing costs - Ending work in process inventory.

answer

d (remember)

question

Which of the following is included in the value chain of a manufacturer?

answer

Delivery, Sales & Marketing, Customer Relations

question

Managerial accounting applies to

answer

Service Firms, Manufacturing Firms, Merchandising Firms aka All types of firms

question

A just-in-time inventory method _______ inventory levels to ________ costs?

answer

reduces;reduce

question

Merchandise inventory is to a merchandiser what ________ is to a manufacturer.

answer

finished goods inventory

question

Finished goods is to a manufacturer what ________ is to a merchandiser.

answer

merchandise inventory

question

Inventories for manufacturing and merchandising companies

answer

are used to compute cost of goods sold, include Work in Process for manufacturers, are reported on the balance sheet.

question

Which one of the following is incorrect concerning manufacturing and merchandising companies' inventories?

answer

Goods available for sale consists of Merchandise Inventory for merchandisers and Work in Process for manufacturers.

question

Cost of goods manufactured is calculated as follows:

answer

Beginning WIP + direct materials used + direct labor + manufacturing overhead - ending WIP.

question

Beginning WIP + direct materials used + direct labor + manufacturing overhead - ending WIP equals:

answer

cost of goods manufactured

question

Brown Industries has $15,000 of ending finished goods inventory as of December 31, 2017. If beginning finished goods inventory was $7,500 and cost of goods sold was $37,500, how much would Brown report for cost of goods manufactured?

answer

$45,000

question

Barkley Manufacturing Company has $40,000 of ending finished goods inventory as of December 31, 2017. If beginning finished goods inventory was $20,000 and cost of goods sold was $100,000, how much would Barkley report for cost of goods manufactured?

answer

$120,000

question

A manufacturing company calculates cost of goods sold as follows:

answer

Beginning FG inventory + cost of goods manufactured - ending FG inventory

question

Beginning FG inventory + cost of goods manufactured - ending FG inventory represents:

answer

the way a manufacturing company calculates cost of goods sold.

question

Connie, Inc.'s direct materials and direct labor total $1,600,000. If manufacturing overhead is $800,000, what is direct labor cost?

answer

Cannot be determined from the information provided

question

Rockford Company's direct materials and direct labor total $4,000,000. If manufacturing overhead is $2,000,000, what is direct labor cost?

answer

Cannot be determined from the information provided

question

Raw materials includes

answer

Indirect and Direct Materials

question

Activities and responsibilities associated with management's functions include

answer

controlling

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