Managerial Accounting Chapter 16 Test Questions – Flashcards
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Managerial accounting information includes both historical and estimated data
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True
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the cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost
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true
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Planning is the process of monitoring operating results and comparing actual result with the expected results
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False
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Product costs are not expensed until the product is sold
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true
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conversion cost Is the combination of direct labor cost and factory overhead cost
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true
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Managerial accounting reports must be prepared according to GAAP
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False
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A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities
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true
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Period (nonmanufacturing) costs are classified into 2 categories: selling and administrative
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True
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The controller's staff consists of management accountants responsible for systems and procedures, general accounting, budgets, taxes and cost accounting
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true
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the statement of cost of goods manufactured is an extension of the income statement for a manufacturing company
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true
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managerial information is for external as well as internal stakeholders
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false
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a performance report that identifies the amount of employee downtime is a financial accounting report
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false
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If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost
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false
