Question 1

Which of the following is not a characteristic of useful managerial accounting reports?

Accepted Answer

A)   accurate
B)   adhere to GAAP
C)   historical and estimated data
D)   prepared as neededE) None of the above
F) B) and D)

Question 2

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Frosting

Accepted Answer

A)  Prime costs
B)  Conversion costs
C)  Both prime and conversion costs
D)  Neither prime nor conversion costsE) None of the above
F) B) and C)

Question 3

Which of the following are basic phases of the management process?

Accepted Answer

A)   supervising and directing
B)   decision making and supervising
C)   organizing and directing
D)   planning and controllingE) None of the above
F) A) and D)

Question 4

The phases of the management process are listed below. Match each phase to the appropriate description.
-Process by which managers run day-to-day operations

Accepted Answer

A)  Planning
B)  Directing
C)  Controlling
D)  Improving
E)  Decision makingF) B) and E)
G) A) and E)

Question 5

Cost of goods sold for a manufacturer equals cost of goods manufactured plus

Accepted Answer

A)   beginning work in process inventory less ending work in process inventory
B)   ending work in process inventory less beginning work in process inventory
C)   beginning finished goods inventory less ending finished goods inventory
D)   ending finished goods inventory less beginning finished goods inventoryE) A) and B)
F) B) and D)

Question 6

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

Accepted Answer

A) True 
 B)False

Question 7

Work in process inventory increased by $20,000 during the current year. Cost of goods manufactured was $180,000. Total manufacturing costs incurred are

Accepted Answer

A)   $198,000
B)   $160,000
C)   $189,000
D)   $200,000E) A) and B)
F) B) and C)

Question 8

Match each description to the appropriate term (a-d) . Answers may be used more than once.
-Utilities incurred in the office

Accepted Answer

A)  Direct materials
B)  Selling and administrative expense
C)  Factory overhead
D)  Direct laborE) B) and D)
F) A) and B)

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is the principal reason for preparing managerial accounting reports?

Accepted Answer

A)   usefulness to management
B)   cost of preparation
C)   clarity
D)   GAAPE) A) and B)
F) A) and C)

Question 11

Managerial accountants could prepare all of the following reports except a (n)

Accepted Answer

A)   performance report identifying amounts of scrap
B)   control report comparing direct material usage over time
C)   sales report targeting monthly sales and potential bonuses
D)   annual report for external regulators such as the SECE) A) and B)
F) A) and C)

Question 12

Direct costs can be specifically traced to a cost object.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Depreciation on factory plant and equipment is an example of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 15

Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change.

Accepted Answer

A) True 
 B)False

Question 16

The following are costs incurred by a lawn mower manufacturer. Identify them as either:
-Grease for wheel axles

Accepted Answer

A)  Direct materials
B)  Direct labor
C)  Factory overheadD) B) and C)
E) A) and C)

Question 17

Match each description to the appropriate term (a-d) . Answers may be used more than once.
-Indirect materials used

Accepted Answer

A)  Direct materials
B)  Selling and administrative expense
C)  Factory overhead
D)  Direct laborE) B) and C)
F) All of the above

Question 18

A plant manager's salary is a (n)

Accepted Answer

A)   direct cost and an indirect cost
B)   direct cost
C)   indirect cost
D)   period costE) None of the above
F) A) and B)

Question 19

Cost of goods manufactured is equal to

Accepted Answer

A)   total manufacturing costs plus ending materials inventory less beginning materials inventory
B)   cost of goods sold plus beginning work in process inventory less ending work in process inventory
C)   total manufacturing costs plus ending work in process inventory less beginning work in process inventory
D)   total manufacturing costs plus beginning work in process inventory less ending work in process inventoryE) A) and C)
F) None of the above

Question 20

Insurance expense incurred on a factory building would be treated as a

Accepted Answer

A)   direct cost
B)   period cost
C)   product cost
D)   selling costE) A) and B)
F) A) and C)

Exam 18: Introduction to Managerial Accounting

Which of the following is the principal reason for preparing managerial accounting reports?

Correct AnswerverifiedShow Answer

Match each description to the appropriate term (a-d) . Answers may be used more than once. -Utilities incurred in the office

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of useful managerial accounting reports?

Correct AnswerverifiedShow Answer

The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost.

Correct AnswerverifiedShow Answer

Match each description to the appropriate term (a-d) . Answers may be used more than once. -Indirect materials used

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Frosting

Correct AnswerverifiedShow Answer

Which of the following are basic phases of the management process?

Correct AnswerverifiedShow Answer

Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change.

Correct AnswerverifiedShow Answer

The following are costs incurred by a lawn mower manufacturer. Identify them as either: -Grease for wheel axles

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Cost of goods sold for a manufacturer equals cost of goods manufactured plus

Correct AnswerverifiedShow Answer

A plant manager's salary is a (n)

Correct AnswerverifiedShow Answer

Insurance expense incurred on a factory building would be treated as a

Correct AnswerverifiedShow Answer

Managerial accountants could prepare all of the following reports except a (n)

Correct AnswerverifiedShow Answer

Cost of goods manufactured is equal to

Correct AnswerverifiedShow Answer

Work in process inventory increased by $20,000 during the current year. Cost of goods manufactured was $180,000. Total manufacturing costs incurred are

Correct AnswerverifiedShow Answer

Direct costs can be specifically traced to a cost object.

Correct AnswerverifiedShow Answer

Depreciation on factory plant and equipment is an example of factory overhead cost.

Correct AnswerverifiedShow Answer

The phases of the management process are listed below. Match each phase to the appropriate description. -Process by which managers run day-to-day operations

Correct AnswerverifiedShow Answer

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