Question 1

Raw materials inventory includes only direct materials.

Accepted Answer

A) True 
 B)False  False

Question 2

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 3

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 4

_____________________ inventory consists of goods a company acquires to use in making products.

Accepted Answer

The answer of _____________________ inventory consists of goods a company...

Question 5

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) A) and E)
G) D) and E)

Question 6

Which of the following statements is true regarding product and period costs?

Accepted Answer

A)  Office salaries expense is a product cost and factory maintenance is a period cost.
B)  Office rent is a product cost and supervisors' salaries expense is a period cost.
C)  Factory rent is a product cost and advertising expense is a period cost.
D)  Delivery expense is a product cost and indirect materials is a period cost.
E)  Sales commissions is a product cost and indirect labor is a period cost.F) B) and E)
G) None of the above

Question 7

For each item shown below,classify it as a product cost or a period cost,by placing an X in the appropriate column.For each item that is a product cost,also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product.

Accepted Answer

The answer of For each item shown below,classify it as...

Question 8

List the four goals of an internal control system.

Accepted Answer

An internal control system is the policies and procedures management used to a)encourage adherence to company policies,b)promote efficient operations,c)ensure reliable accounting,and d)protect assets.

Question 9

Match the following terms to the appropriate definitions.

-Products in the process of being manufactured but not yet complete.

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) A) and G)
L) A) and H)

Question 10

Information for Reedy Manufacturing is presented below.Compute both the cost of goods manufactured and the cost of goods sold for Reedy Manufacturing.

Accepted Answer

The answer of Information for Reedy Manufacturing is presented below.Compute...

Question 11

A variable cost changes in proportion to changes in the volume in activity.

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

Herren,Inc.reported the following data regarding costs and inventories for the current year:
 beginning goods-in-process inventory,$4,000; beginning finished goods inventory,$2,000; cost of goods manufactured,$11,500; operating expenses,$3,000; ending finished goods inventory,$1,000; ending goods-in-process inventory,$1,500.Cost of goods sold for Herren,Inc.equals ____________________.

Accepted Answer

Beginning Finished Goods Inve...

Question 14

____________________ inventory consists of completed products ready for sale by a manufacturer.

Accepted Answer

The answer of ____________________ inventory consists of completed products ready...

Question 15

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)  Has already been incurred and cannot be avoided so it is irrelevant for decision making.F) A) and D)
G) None of the above

Question 16

A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:

Accepted Answer

A)  Materiality statement.
B)  Managerial statement.
C)  Manufacturing statement.
D)  Merchandise statement.
E)  Monetary statement.F) B) and E)
G) A) and B)

Question 17

Adopting a lean business model should have no effect on cost in a modern manufacturing environment.

Accepted Answer

A) True 
 B)False

Question 18

Policies and procedures used by management to monitor and control business activities are known as ____________________________.

Accepted Answer

The answer of Policies and procedures used by management to...

Question 19

Costs that flow directly to the current income statement are called:

Accepted Answer

A)  Period costs.
B)  Product costs.
C)  General costs.
D)  Balance sheet costs.
E)  Capitalized costs.F) A) and E)
G) C) and E)

Question 20

The focus of managerial accounting is on providing ________________ reports while the focus of financial accounting is on providing _____________ reports.

Accepted Answer

answers m...

Exam 18: Managerial Accounting Concepts and Principles

Raw materials inventory includes only direct materials.

Correct Answer
verified
False

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

Correct Answer
verified

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Correct Answer
verified

_____________________ inventory consists of goods a company acquires to use in making products.

Correct Answer
verified

Product costs:

Correct Answer
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Which of the following statements is true regarding product and period costs?

Correct Answer
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For each item shown below,classify it as a product cost or a period cost,by placing an X in the appropriate column.For each item that is a product cost,also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product.

Correct Answer
verified
11ea7277_ee35_0c39_9608_0db56878685b_TB2411_00

List the four goals of an internal control system.

Correct Answer
verified
An internal control system is the policies and procedures management used to a)encourage adherence to company policies,b)promote efficient operations,c)ensure reliable accounting,and d)protect assets.

Match the following terms to the appropriate definitions. -Products in the process of being manufactured but not yet complete.

Correct Answer
verified

Information for Reedy Manufacturing is presented below.Compute both the cost of goods manufactured and the cost of goods sold for Reedy Manufacturing.

Correct Answer
verified

A variable cost changes in proportion to changes in the volume in activity.

Correct Answer
verified

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

Correct Answer
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Correct Answer
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Beginning Finished Goods Inve...
View Answer

____________________ inventory consists of completed products ready for sale by a manufacturer.

Correct Answer
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A fixed cost:

Correct Answer
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A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:

Correct Answer
verified

Adopting a lean business model should have no effect on cost in a modern manufacturing environment.

Correct Answer
verified

Policies and procedures used by management to monitor and control business activities are known as ____________________________.

Correct Answer
verified

Costs that flow directly to the current income statement are called:

Correct Answer
verified

The focus of managerial accounting is on providing ____ reports while the focus of financial accounting is on providing _ reports.

Correct Answer
verified
answers m...
View Answer

Exam 18: Managerial Accounting Concepts and Principles

Raw materials inventory includes only direct materials.

Correct AnswerverifiedFalse

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

Correct AnswerverifiedShow Answer

Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.

Correct AnswerverifiedShow Answer

_____________________ inventory consists of goods a company acquires to use in making products.

Correct AnswerverifiedShow Answer

Product costs:

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding product and period costs?

Correct AnswerverifiedShow Answer

For each item shown below,classify it as a product cost or a period cost,by placing an X in the appropriate column.For each item that is a product cost,also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product.

Correct Answerverified11ea7277_ee35_0c39_9608_0db56878685b_TB2411_00

List the four goals of an internal control system.

Correct AnswerverifiedAn internal control system is the policies and procedures management used to a)encourage adherence to company policies,b)promote efficient operations,c)ensure reliable accounting,and d)protect assets.

Match the following terms to the appropriate definitions. -Products in the process of being manufactured but not yet complete.

Correct AnswerverifiedShow Answer

Information for Reedy Manufacturing is presented below.Compute both the cost of goods manufactured and the cost of goods sold for Reedy Manufacturing.

Correct AnswerverifiedShow Answer

A variable cost changes in proportion to changes in the volume in activity.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answerverified Beginning Finished Goods Inve...View AnswerShow Answer

____________________ inventory consists of completed products ready for sale by a manufacturer.

Correct AnswerverifiedShow Answer

A fixed cost:

Correct AnswerverifiedShow Answer

A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:

Correct AnswerverifiedShow Answer

Adopting a lean business model should have no effect on cost in a modern manufacturing environment.

Correct AnswerverifiedShow Answer

Policies and procedures used by management to monitor and control business activities are known as ____________________________.

Correct AnswerverifiedShow Answer

Costs that flow directly to the current income statement are called:

Correct AnswerverifiedShow Answer

The focus of managerial accounting is on providing ________________ reports while the focus of financial accounting is on providing _____________ reports.

Correct Answerverified answers m...View AnswerShow Answer

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False

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11ea7277_ee35_0c39_9608_0db56878685b_TB2411_00

Correct Answer
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An internal control system is the policies and procedures management used to a)encourage adherence to company policies,b)promote efficient operations,c)ensure reliable accounting,and d)protect assets.

Correct Answer
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Correct Answer
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Beginning Finished Goods Inve...
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The focus of managerial accounting is on providing ____ reports while the focus of financial accounting is on providing _ reports.

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View Answer