Question 1

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.F) A) and B)
G) A) and E)

Question 2

_______________ is the deliberate misuse of the employer's assets for the employee's personal gain.

Accepted Answer

The answer of _______________ is the deliberate misuse of the...

Question 3

Using the information below for Hardy Company; determine the manufacturing costs added during the current year:

Accepted Answer

A)   $12,000.
B)   $16,100.
C)   $17,100.
D)   $18,100.
E)   $13,600F) None of the above
G) All of the above

Question 4

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) A) and C)
G) B) and E)

Question 5

The focus of financial accounting is on an organization's projects, processes, and subdivisions, and the focus of managerial accounting is on the whole organization.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Which of the following items appears only in a manufacturing company's financial statements?

Accepted Answer

A)   Cost of goods sold.
B)   Cost of goods manufactured.
C)   Goods available for sale.
D)   Gross profit.
E)   Net income.F) A) and C)
G) A) and E)

Question 8

Whether a cost is controllable or not controllable by an employee depends on the employee's level of responsibility.

Accepted Answer

A) True 
 B)False

Question 9

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) C) and D)
G) B) and E)

Question 10

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) None of the above
G) All of the above

Question 11

Which of the following items are management concepts that were created to improve companies' performances?

Accepted Answer

A)   Just-in-time manufacturing.
B)   Customer orientation.
C)   Total quality management.
D)   Continuous improvement.
E)   All of these.F) A) and B)
G) A) and C)

Question 12

Raw materials inventory includes only direct materials.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

Managerial...

Question 14

Materials that are used in support of the production process but are not clearly identified with units or batches of product are called:

Accepted Answer

A)   Secondary materials.
B)   General materials.
C)   Direct materials.
D)   Indirect materials.
E)   Materials inventory.F) A) and E)
G) B) and E)

Question 15

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) A) and E)

Question 16

An employer is unsure if an act by an employee constitutes fraud. What are some of the indications that an employee is involved in a fraud scheme?

Accepted Answer

All fraud is done to provide d...

Question 17

What are the components of the manufacturing statement? Describe each component.

Accepted Answer

The components of the manufacturing stat...

Question 18

____________________ 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 19

The cost of labor that is not clearly associated with specific units or batches of product is called:

Accepted Answer

A)   Unspecified labor.
B)   Direct labor.
C)   Indirect labor.
D)   Basic labor.
E)   Joint labor.F) B) and E)
G) D) and E)

Question 20

Use the following information to compute the cost of goods manufactured:

Accepted Answer

A)   $36,650.
B)   $30,950.
C)   $30,650.
D)   $30,350.
E)   $31,650.F) None of the above
G) A) and B)

Exam 18: Managerial Accounting Concepts and Principles

Raw materials inventory includes only direct materials.

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

Correct AnswerverifiedManagerial...View AnswerShow Answer

Whether a cost is controllable or not controllable by an employee depends on the employee's level of responsibility.

Correct AnswerverifiedShow Answer

Which of the following items are management concepts that were created to improve companies' performances?

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The focus of financial accounting is on an organization's projects, processes, and subdivisions, and the focus of managerial accounting is on the whole organization.

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Use the following information to compute the cost of goods manufactured:

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Using the information below for Hardy Company; determine the manufacturing costs added during the current year:

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

Correct AnswerverifiedShow Answer

Which of the following items appears only in a manufacturing company's financial statements?

Correct AnswerverifiedShow Answer

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

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

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Managerial accounting information:

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Flexibility of practice when applied to managerial accounting means that

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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

_______________ is the deliberate misuse of the employer's assets for the employee's personal gain.

Correct AnswerverifiedShow Answer

The cost of labor that is not clearly associated with specific units or batches of product is called:

Correct AnswerverifiedShow Answer

Calculate the cost of goods manufactured using the following information:

Correct AnswerverifiedShow Answer

An employer is unsure if an act by an employee constitutes fraud. What are some of the indications that an employee is involved in a fraud scheme?

Correct AnswerverifiedAll fraud is done to provide d...View AnswerShow Answer

Materials that are used in support of the production process but are not clearly identified with units or batches of product are called:

Correct AnswerverifiedShow Answer

What are the components of the manufacturing statement? Describe each component.

Correct AnswerverifiedThe components of the manufacturing stat...View AnswerShow Answer

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Managerial...
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(Students would need to choose any three...
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All fraud is done to provide d...
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The components of the manufacturing stat...
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