Chapter 1final – Flashcards
Unlock all answers in this set
Unlock answersquestion
In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT:
answer
be prepared in accordance with generally accepted accounting principles
question
What is the primary criterion for the preparation of managerial accounting reports?
answer
b. Meet the manager needs
question
Which of the following is most associated with managerial accounting?
answer
May rely on estimates and forecasts
question
Which of the following is most associated with financial accounting?
answer
Prepared in accordance with GAAP
question
Which of the following statements is false?
answer
There is no overlap between financial and managerial accounting.
question
In most business organizations, the chief management accountant is called the:
answer
b. controller
question
All of the following employees hold line positions in Anthea Electric EXCEPT:
answer
vice president of finance
question
The controller's staff often consists of several management accountants. All of the following would most likely be on the controller's staff EXCEPT:
answer
c. investments and shareholder relations managers
question
9. Managerial accounting
answer
is prepared according to management needs.
question
Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?
answer
Managers
question
Which of the following are basic phases of the management process?
answer
d. Planning and controlling
question
What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?
answer
Controlling
question
What term is used to describe the process of developing the organization's objectives and translating those into courses of action?
answer
Planning
question
Which of the following is the principle reason for preparing managerial accounting reports?
answer
Usefulness to management
question
Which of the following is not a characteristic of useful managerial accounting reports?
answer
GAAP
question
Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $186,300; Factory Overhead, $187,900; and Selling Expenses, $45,290.
answer
$374,200
question
Which of the following is false in regards to direct materials for an auto manufacturer?
answer
Small plastic clips to hold on door panels, that become part of the auto, must be accounted for as direct materials.
question
The cost of a manufactured product generally consists of which of the following costs?
answer
Direct labor cost, direct materials cost, and factory overhead cost
question
Materials must have which two qualities in order to be classified as direct materials?
answer
d. They must be an integral part of the finished product and be a significant portion of the total product cost.
question
Which of the following is an example of direct materials cost for an automobile manufacturer?
answer
Cost of interior upholstery
question
If the cost of direct materials is a small portion of total production cost, it may be classified as part of:
answer
factory overhead cost
question
The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished product is classified as:
answer
direct labor cost
question
Which of the following is an example of direct labor cost for an airplane manufacturer?
answer
Cost of wages of assembly worker
question
Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as:
answer
factory overhead cost
question
Which of the following is an example of a factory overhead cost?
answer
Factory heating and lighting cost
question
What term is used to refer to the cost of changing direct materials into a finished manufactured product?
answer
Conversion cost
question
Which of the following items would not be classified as part of factory overhead?
answer
Direct labor used
