Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Period costs for a manufacturing company flow directly to:

Accepted Answer

A)  The income statement as an expense.
B)  Factory overhead.
C)  The balance sheet as inventory.
D)  Cost of goods sold on the income statement.
E)  The current schedule of cost of goods manufactured.F) A) and E)
G) B) and D)

Question 3

Which of the following is an indirect cost of manufacturing scooters?

Accepted Answer

A)  Scooter assembly wages.
B)  Wheels.
C)  Supervisor salary.
D)  Brakes
E)  Assembly worker employee benefits.F) A) and B)
G) A) and C)

Question 4

________ reveals how much raw materials inventory is available in terms of the number of days' sales.

Accepted Answer

Days' sale...

Question 5

Information for Jersey Metalworks as of December 31 follows.Prepare (a)the company's schedule of cost of goods manufactured 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 Jersey Metalworks as of December...

Question 6

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it,and estimates and projections are acceptable.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not part of the sales activity in the flow of manufacturing activities?

Accepted Answer

A)  Beginning Finished Goods Inventory.
B)  Cost of Goods Manufactured.
C)  Total Finished Goods available for sale.
D)  Ending Work in Process Inventory.
E)  Cost of Goods Sold.F) B) and C)
G) A) and E)

Question 8

Which of the following is 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) A) and B)
G) All of the above

Question 9

Using the information below:

-Calculate net income for the period:

Accepted Answer

A)  $774,000.
B)  $769,000.
C)  $530,000.
D)  $535,000.
E)  $448,000.F) None of the above
G) All of the above

Question 10

Selling and administrative expenses are normally period costs.

Accepted Answer

A) True 
 B)False

Question 11

Goals of a lean business model include all of the following except:

Accepted Answer

A)  Eliminate waste.
B)  Better inventory control.
C)  Continuous improvement.
D)  Consistent production levels.
E)  Fewer product defects.F) A) and B)
G) A) and C)

Question 12

Just-in-time manufacturing is a system that acquires inventory and produces product only when needed for an order.

Accepted Answer

A) True 
 B)False

Question 13

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) None of the above
G) All of the above

Question 14

Romeo Corporation reports the following for the year: 
The cost of goods manufactured for the year is:

Accepted Answer

A)  $21,400.
B)  $11,000.
C)  $15,000.
D)  $17,400.
E)  $10,200.F) C) and D)
G) A) and D)

Question 15

What does the days' sales in raw materials inventory ratio reveal?

Accepted Answer

Days' sales in raw materials i...

Question 16

A fixed cost:

Accepted Answer

A)  Requires the future outlay of cash and is relevant for future decision making.
B)  Does not change with changes in the volume of activity within the relevant range.
C)  Is directly traceable to a cost object.
D)  Changes with changes in the volume of activity within the relevant range.
E)  Is irrelevant for managers' decision making.F) A) and D)
G) B) and E)

Question 17

Richards Company manufactures a single product.All raw materials used are traceable to specific units of product.Current information for the company follows: 
The company's cost of direct materials used,cost of goods manufactured and cost of goods sold is:

Accepted Answer

A)   
B)   
C)   
D)   
E)   F) A) and B)
G) A) and D)

Question 18

Control is the process of monitoring planning decisions and evaluating an organization's activities and employees.

Accepted Answer

A) True 
 B)False

Question 19

Information for Eastman Industries is presented below.Compute the cost of goods manufactured.

Accepted Answer

The answer of Information for Eastman Industries is presented below.Compute...

Question 20

Manufacturing costs other than direct materials and direct labor,and are not readily traceable to specific units or batches of production are called:

Accepted Answer

A)  Administrative expenses.
B)  Nonmanufacturing costs.
C)  Prime costs.
D)  Factory overhead.
E)  Preproduction costs.F) B) and C)
G) A) and B)

Exam 14: Managerial Accounting Concepts and Principles

Richards Company manufactures a single product.All raw materials used are traceable to specific units of product.Current information for the company follows: The company's cost of direct materials used,cost of goods manufactured and cost of goods sold is:

Correct AnswerverifiedShow Answer

________ reveals how much raw materials inventory is available in terms of the number of days' sales.

Correct AnswerverifiedDays' sale...View AnswerShow Answer

Manufacturing costs other than direct materials and direct labor,and are not readily traceable to specific units or batches of production are called:

Correct AnswerverifiedShow Answer

Just-in-time manufacturing is a system that acquires inventory and produces product only when needed for an order.

Correct AnswerverifiedShow Answer

Which of the following is not part of the sales activity in the flow of manufacturing activities?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What does the days' sales in raw materials inventory ratio reveal?

Correct AnswerverifiedDays' sales in raw materials i...View AnswerShow Answer

Selling and administrative expenses are normally period costs.

Correct AnswerverifiedShow Answer

Period costs for a manufacturing company flow directly to:

Correct AnswerverifiedShow Answer

Information for Eastman Industries is presented below.Compute the cost of goods manufactured.

Correct AnswerverifiedShow Answer

Romeo Corporation reports the following for the year: The cost of goods manufactured for the year is:

Correct AnswerverifiedShow Answer

Goals of a lean business model include all of the following except:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Information for Jersey Metalworks as of December 31 follows.Prepare (a)the company's schedule of cost of goods manufactured 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

A fixed cost:

Correct AnswerverifiedShow Answer

Which of the following is an indirect cost of manufacturing scooters?

Correct AnswerverifiedShow Answer

Control is the process of monitoring planning decisions and evaluating an organization's activities and employees.

Correct AnswerverifiedShow Answer

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it,and estimates and projections are acceptable.

Correct AnswerverifiedShow Answer

Using the information below: -Calculate net income for the period:

Correct AnswerverifiedShow Answer

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Days' sale...
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Days' sales in raw materials i...
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