Question 1

Calculate Cost of Goods Sold for the following two companies:

Accepted Answer

The answer of Calculate Cost of Goods Sold for the...

Question 2

Flexibility of practice when applied to managerial accounting means that

Accepted Answer

A)  The information must be presented in electronic format so that it is easily changed.
B)  Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for.
C)  The managerial accountants need to be on call twenty-four hours a day.
D)  The design of a company's managerial accounting system largely depends on the nature of the business and the arrangement of the internal operations of the company.
E)  Managers must be flexible with information provided in varying forms and using inconsistent measures.F) A) and B)
G) B) and D)

Question 3

The cost of partially completed products is included in the balance of the Goods in Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 4

The potential benefit lost by taking a specific action from two or more choices is an _____________________________.

Accepted Answer

The answer of The potential benefit lost by taking a...

Question 5

The three major cost components of a manufactured product are:

Accepted Answer

A)  Marketing, selling, and administrative costs.
B)  Indirect labor, indirect materials, and miscellaneous factory expenses.
C)  Direct materials, direct labor, and factory overhead.
D)  Differential costs, opportunity costs, and sunk costs.
E)  General, selling, and administrative costs.F) B) and E)
G) A) and B)

Question 6

Managerial accounting provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Accepted Answer

A) True 
 B)False

Question 7

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured was $147,000; and the December 31 finished goods inventory was $77,000.What is the cost of goods sold for that year?

Accepted Answer

The answer of A manufacturing company's finished goods inventory on...

Question 8

The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year:
Beginning Ending
Raw materials inventory……………………… $ 57,000 $60,000
Finished goods………………………………... 68,000 60,000
The raw materials used in manufacturing during the year totaled $118,000.Raw materials purchased during the year amount to:

Accepted Answer

A)  $107,000.
B)  $115,000.
C)  $118,000.
D)  $121,000
E)  $126,000.F) None of the above
G) B) and C)

Question 9

Which of the following represents the correct formula for calculating raw materials inventory turnover for a manufacturer?

Accepted Answer

A)  Raw materials purchased/Average raw materials inventory.
B)  Average raw materials inventory/Raw materials used.
C)  Raw materials used/Average raw materials inventory.
D)  Ending raw materials/Raw materials used * 365.
E)  Raw materials used/Beginning raw materials inventory *365.F) B) and C)
G) None of the above

Question 10

A ___________________ cost has already been incurred and cannot be avoided or changed,so it irrelevant to decision making.

Accepted Answer

The answer of A ___________________ cost has already been incurred...

Question 11

Match between columns
                        Premises: Expenditures incurred in the process of converting raw materials to finished products; include direct labor and factory overhead.
Costs that do not change in total with changes in the volume of activity.
Costs that are incurred for the benefit of more than one cost object.
Manufacturing expenditures that cannot be separately or readily traced to finished goods.
Expenditures directly associated with the manufacture of finished products; include direct materials and direct labor.
Costs that have already been incurred and cannot be avoided or changed.
The potential benefit lost by choosing a specific action from two or more alternatives.
Expenditures necessary and integral to finished products.
Costs that flow directly to the current income statement as expenses.
Costs that change in proportion to changes in volume of activity.

Accepted Answer

The Answer of Variable costs and Prime costs and Sunk is...

Question 12

If beginning and ending goods in process inventories are $5,000 and $15,000,respectively,and cost of goods manufactured is $170,000,what is the total manufacturing cost for the period?

Accepted Answer

A)  $180,000.
B)  $155,000.
C)  $160,000.
D)  $175,000.
E)  $165,000.F) A) and E)
G) B) and D)

Question 13

____________________ is the process of monitoring plans and evaluating an organization's activities and employees.

Accepted Answer

The answer of ____________________ is the process of monitoring plans...

Question 14

Match the following terms to the appropriate definitions.

-An activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Accepted Answer

A)  Managerial accounting
B)  Continuous improvement
C)  Raw materials inventory
D)  Customer orientation
E)  Just-in-time manufacturingF) Goods in process inventoryG) Lean business modelH) Balanced scorecardI) Prime costsJ) Raw materials inventory turnoverK) D) and H)
L) F) and G)

Question 15

Factory overhead costs normally include all of the following except:

Accepted Answer

A)  Indirect labor costs.
B)  Indirect material costs.
C)  Selling costs.
D)  Machinery oil.
E)  Factory rent.F) B) and C)
G) A) and E)

Question 16

A manufacturer's cost of goods manufactured is the sum of direct materials,direct labor,and factory overhead costs incurred in producing products.

Accepted Answer

A) True 
 B)False

Question 17

The Institute of Management Accountants Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

Accepted Answer

A) True 
 B)False

Question 18

Match the following terms to the appropriate definitions.

-Reveals how many times a company sells its raw materials inventory during a period.

Accepted Answer

A)  Managerial accounting
B)  Continuous improvement
C)  Raw materials inventory
D)  Customer orientation
E)  Just-in-time manufacturingF) Goods in process inventoryG) Lean business modelH) Balanced scorecardI) Prime costsJ) Raw materials inventory turnoverK) E) and G)
L) F) and J)

Question 19

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on drivers or indicators of future financial performance.

Accepted Answer

A) True 
 B)False

Question 20

The management concept of customer orientation causes a company to spend large amounts on advertising to convince customers to buy the company's standard products.

Accepted Answer

A) True 
 B)False

Exam 18: Managerial Accounting Concepts and Principles

Correct Answer
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The potential benefit lost by taking a specific action from two or more choices is an _____________________________.

Correct Answer
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The management concept of customer orientation causes a company to spend large amounts on advertising to convince customers to buy the company's standard products.

Correct Answer
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Factory overhead costs normally include all of the following except:

Correct Answer
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Match the following terms to the appropriate definitions. -An activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Correct Answer
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The cost of partially completed products is included in the balance of the Goods in Process Inventory account.

Correct Answer
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If beginning and ending goods in process inventories are $5,000 and $15,000,respectively,and cost of goods manufactured is $170,000,what is the total manufacturing cost for the period?

Correct Answer
verified

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on drivers or indicators of future financial performance.

Correct Answer
verified

The three major cost components of a manufactured product are:

Correct Answer
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A ___________________ cost has already been incurred and cannot be avoided or changed,so it irrelevant to decision making.

Correct Answer
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Flexibility of practice when applied to managerial accounting means that

Correct Answer
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Which of the following represents the correct formula for calculating raw materials inventory turnover for a manufacturer?

Correct Answer
verified

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured was $147,000; and the December 31 finished goods inventory was $77,000.What is the cost of goods sold for that year?

Correct Answer
verified

Managerial accounting provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Correct Answer
verified

A manufacturer's cost of goods manufactured is the sum of direct materials,direct labor,and factory overhead costs incurred in producing products.

Correct Answer
verified

Match the following terms with the appropriate definition.

The Institute of Management Accountants Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

Correct Answer
verified

Calculate Cost of Goods Sold for the following two companies:

Correct Answer
verified

____________________ is the process of monitoring plans and evaluating an organization's activities and employees.

Correct Answer
verified

Match the following terms to the appropriate definitions. -Reveals how many times a company sells its raw materials inventory during a period.

Correct Answer
verified

Exam 18: Managerial Accounting Concepts and Principles

Correct AnswerverifiedShow Answer

The potential benefit lost by taking a specific action from two or more choices is an _____________________________.

Correct AnswerverifiedShow Answer

The management concept of customer orientation causes a company to spend large amounts on advertising to convince customers to buy the company's standard products.

Correct AnswerverifiedShow Answer

Factory overhead costs normally include all of the following except:

Correct AnswerverifiedShow Answer

Match the following terms to the appropriate definitions. -An activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Correct AnswerverifiedShow Answer

The cost of partially completed products is included in the balance of the Goods in Process Inventory account.

Correct AnswerverifiedShow Answer

If beginning and ending goods in process inventories are $5,000 and $15,000,respectively,and cost of goods manufactured is $170,000,what is the total manufacturing cost for the period?

Correct AnswerverifiedShow Answer

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on drivers or indicators of future financial performance.

Correct AnswerverifiedShow Answer

The three major cost components of a manufactured product are:

Correct AnswerverifiedShow Answer

A ___________________ cost has already been incurred and cannot be avoided or changed,so it irrelevant to decision making.

Correct AnswerverifiedShow Answer

Flexibility of practice when applied to managerial accounting means that

Correct AnswerverifiedShow Answer

Which of the following represents the correct formula for calculating raw materials inventory turnover for a manufacturer?

Correct AnswerverifiedShow Answer

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured was $147,000; and the December 31 finished goods inventory was $77,000.What is the cost of goods sold for that year?

Correct AnswerverifiedShow Answer

Managerial accounting provides financial and nonfinancial information to an organization's managers and other internal decision makers.

Correct AnswerverifiedShow Answer

A manufacturer's cost of goods manufactured is the sum of direct materials,direct labor,and factory overhead costs incurred in producing products.

Correct AnswerverifiedShow Answer

Match the following terms with the appropriate definition.

The Institute of Management Accountants Statement of Ethical Professional Practice requires that management accountants be competent and act with integrity.

Correct AnswerverifiedShow Answer

Calculate Cost of Goods Sold for the following two companies:

Correct AnswerverifiedShow Answer

____________________ is the process of monitoring plans and evaluating an organization's activities and employees.

Correct AnswerverifiedShow Answer

Match the following terms to the appropriate definitions. -Reveals how many times a company sells its raw materials inventory during a period.

Correct AnswerverifiedShow Answer

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