Question 1

Managerial accounting information:

Accepted Answer

A)   Is used mainly by external users.
B)   Involves gathering information about costs for planning and control decisions.
C)   Is generally the only accounting information available to managers.
D)   Can be used for control purposes but not for planning purposes.
E)   Has little to do with controlling costs.F) A) and B)
G) A) and C)

Question 2

Control is the process of setting goals and determining ways to achieve them.

Accepted Answer

A) True 
 B)False

Question 3

Products that have been completed and are ready to be sold by the manufacturer are called:

Accepted Answer

A)   Finished goods inventory.
B)   Goods in process inventory.
C)   Raw materials inventory.
D)   Cost of goods sold.
E)   Factory supplies.F) C) and D)
G) D) and E)

Question 4

Expenditures directly associated with the manufacture of finished goods that include direct materials and direct labor are _____________________ costs.

Accepted Answer

The answer of Expenditures directly associated with the manufacture of...

Question 5

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) None of the above
G) A) and D)

Question 6

The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year:  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) B) and D)
G) B) and E)

Question 7

One of the usual differences between financial and managerial accounting is the time dimension of the information reported.

Accepted Answer

A) True 
 B)False

Question 8

Information for York Plastics as of December 31 follows. Prepare (a) the company's manufacturing statement for the year ended December 31; (b) prepare the company's income statement that reports separate categories for selling and general and administrative expenses.

Accepted Answer

The answer of Information for York Plastics as of December...

Question 9

The manufacturing statement is also known as the schedule of manufacturing activities or the schedule of cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 10

Using the information below, calculate gross profit for the period.

Accepted Answer

A)   $714,000.
B)   $482,000.
C)   $1,022,000.
D)   $187,000.
E)   Cannot be determined from the information provideD.Sales Revenues - Cost of Goods Sold = Gross ProfitF) C) and D)
G) B) and E)

Question 11

A _________________ cost does not change in proportion to changes in the volume of activity within the relevant range.

Accepted Answer

The answer of A _________________ cost does not change in...

Question 12

Product costs:

Accepted Answer

A)   Are expenditures necessary and integral to finished products.
B)   Are expenditures identified more with a time period rather than with finished products.
C)   Include selling and administrative expenses.
D)   Are costs that vary with the volume of activity.
E)   Are costs that do not vary with the volume of activity.F) B) and E)
G) C) and D)

Question 13

Ringle Company is a manufacturer of compact disks (CDs). Place each of the following costs in the appropriate column.

Accepted Answer

The answer of Ringle Company is a manufacturer of compact...

Question 14

The manufacturing statement is divided into four parts consisting of all of the following except:

Accepted Answer

A)   Direct materials.
B)   Computation of cost of goods sold.
C)   Overhead.
D)   Computation of cost of goods manufactured.
E)   Direct labor.F) B) and C)
G) All of the above

Question 15

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 16

There are many differences between financial and managerial accounting. Identify and explain at least three of these differences.

Accepted Answer

(Students would need to choose any three...

Question 17

Calculate the cost of goods manufactured using the following information:

Accepted Answer

A)   $680,500.
B)   $701,900.
C)   $687,100.
D)   $674,600.
E)   $772,600.F) B) and D)
G) A) and D)

Question 18

A ______________________ system means that a company acquires or produces inventory only when needed.

Accepted Answer

Just-In-Ti...

Question 19

The ________________________ aids continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance along four dimensions: (1) financial, (2) customer, (3) internal business processes, and (4) learning and growth.

Accepted Answer

The answer of The ________________________ aids continuous improvement by augmenting...

Question 20

Harv's Sound Systems produces speakers for movie theaters that sell for $1,200 each. Listed below are selected cost items for the production of 600 units. Classify each cost as either fixed or variable, and either a product or a period cost.

Accepted Answer

The answer of Harv's Sound Systems produces speakers for movie...

Exam 18: Managerial Accounting Concepts and Principles

Control is the process of setting goals and determining ways to achieve them.

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A ______________________ system means that a company acquires or produces inventory only when needed.

Correct AnswerverifiedJust-In-Ti...View AnswerShow Answer

Expenditures directly associated with the manufacture of finished goods that include direct materials and direct labor are _____________________ costs.

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The manufacturing statement is divided into four parts consisting of all of the following except:

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Information for York Plastics as of December 31 follows. Prepare (a) the company's manufacturing statement for the year ended December 31; (b) prepare the company's income statement that reports separate categories for selling and general and administrative expenses.

Correct AnswerverifiedShow Answer

Using the information below, calculate gross profit for the period.

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Managerial accounting information:

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There are many differences between financial and managerial accounting. Identify and explain at least three of these differences.

Correct Answerverified(Students would need to choose any three...View AnswerShow Answer

Ringle Company is a manufacturer of compact disks (CDs). Place each of the following costs in the appropriate column.

Correct AnswerverifiedShow Answer

Products that have been completed and are ready to be sold by the manufacturer are called:

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 manufacturing statement is also known as the schedule of manufacturing activities or the schedule of cost of goods manufactured.

Correct AnswerverifiedShow Answer

Harv's Sound Systems produces speakers for movie theaters that sell for $1,200 each. Listed below are selected cost items for the production of 600 units. Classify each cost as either fixed or variable, and either a product or a period cost.

Correct AnswerverifiedShow Answer

Calculate the cost of goods manufactured using the following information:

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The ________________________ aids continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance along four dimensions: (1) financial, (2) customer, (3) internal business processes, and (4) learning and growth.

Correct AnswerverifiedShow Answer

Product costs:

Correct AnswerverifiedShow Answer

A _________________ cost does not change in proportion to changes in the volume of activity within the relevant range.

Correct AnswerverifiedShow Answer

The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year: The raw materials used in manufacturing during the year totaled $118,000. Raw materials purchased during the year amount to:

Correct AnswerverifiedShow Answer

One of the usual differences between financial and managerial accounting is the time dimension of the information reported.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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