Managerial Accounting Chapter 16 Test Questions

question

Managerial accounting information includes both historical and estimated data
answer

True
question

the cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost
answer

true
question

Planning is the process of monitoring operating results and comparing actual result with the expected results
answer

False
question

Product costs are not expensed until the product is sold
answer

true
question

conversion cost Is the combination of direct labor cost and factory overhead cost
answer

true
question

Managerial accounting reports must be prepared according to GAAP
answer

False
question

A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities
answer

true
question

Period (nonmanufacturing) costs are classified into 2 categories: selling and administrative
answer

True
question

The controller’s staff consists of management accountants responsible for systems and procedures, general accounting, budgets, taxes and cost accounting
answer

true
question

the statement of cost of goods manufactured is an extension of the income statement for a manufacturing company
answer

true
question

managerial information is for external as well as internal stakeholders
answer

false
question

a performance report that identifies the amount of employee downtime is a financial accounting report
answer

false
question

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost
answer

false

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