Reference no: EM131766348

QUESTION 1
Managerial accounting internal reports are prepared more frequently than are classified financial statements
True
False

QUESTION 2
Period costs generally flow into inventory
True
False

QUESTION 3
Many companies have significantly lowered inventory levels and costs using just-in-time inventory methods
True
False

QUESTION 4
Both direct labor cost and indirect labor cost are product costs
True
False

QUESTION 5
Managerial accounting skills and tools can and should be used extensively in non-profit organizations
True
False

QUESTION 6
Managerial accounting applies to each of the following types of businesses except
a. service firms.
b. merchandising firms.
c. manufacturing firms.
d. Managerial accounting applies to all types of firms.

QUESTION 7
Managerial accounting information is generally prepared for
a. stockholders.
b. creditors.
c. managers.
d. regulatory agencies.

QUESTION 8
Management accountants would not
a. assist in budget planning.
b. prepare reports primarily for external users.
.
c. determine cost behavior.
d. be concerned with the impact of cost and volume on profits

QUESTION 9
Which one of the following would not be classified as manufacturing overhead?
a. Indirect labor
b. Direct materials
c. Insurance on factory building
d. Indirect materials

QUESTION 10
The product cost that is most difficult to associate with a product is
a. direct materials.
b. direct labor.
c. manufacturing overhead.
d. advertising.

QUESTION 11
A job order cost system is most appropriate when a large volume of uniform products are produced.
True
False

QUESTION 12
The perpetual inventory method cannot be used in a job order cost system
True
False

QUESTION 13
A company that produces motion pictures would likely use a process cost system
True
False

QUESTION 14
Companies often use a combination of a process cost and a job order cost system, called operations costing
True
False

QUESTION 15
Which of the following would most likely be accounted for using a job order cost system?
a. The production of personal computers.
b. The production of automobiles.
c. The refining of petroleum.
d. The construction of a new campus building.

QUESTION 16
The entry to record the acquisition of raw materials on account is
a. Work in Process Inventory Accounts Payable
b. Manufacturing Overhead Raw Materials Inventory Accounts Payable
c. Accounts Payable Raw Materials Inventory
d. Raw Materials Inventory Accounts Payable

QUESTION 17
In process cost accounting, manufacturing costs are summarized on a
a. job order cost sheet.
b. process order cost sheet.
c. production cost report.
d. manufacturing cost sheet.

QUESTION 18
An important feature of a job order cost system is that each job
a. must be similar to previous jobs completed.
b. has its own distinguishing characteristics.
c. must be completed before a new job is accepted.
d. consists of one unit of output.

QUESTION 19
Process costing is used when
a. the production process is continuous.
b. production is aimed at filling a specific customer order.
c. dissimilar products are involved.
d. costs are to be assigned to specific jobs.

QUESTION 20
A process cost system would most likely be used by a company that makes
a. motion pictures.
b. repairs to automobiles.
c. breakfast cereal.
d. college graduation announcements.

QUESTION 21
Actual overhead costs are debited to the Manufacturing Overhead account
True
False

QUESTION 22
The entry to record the cost of goods sold includes a debit to Finished Goods Inventory.
True
False

QUESTION 23
Actual overhead costs are debited to the Manufacturing Overhead account
True
False

QUESTION 24
The requisition of factory supplies to production requires a debit to the Manufacturing Overhead account.
True
False

QUESTION 25
Manufacturing overhead costs generally is not traced directly to a specific job.
True
False

QUESTION 26
Managerial accounting is a field of accounting that provides economic information for internal users
True
False

QUESTION 27
The primary users of managerial accounting information are external users who are stockholders, creditors, and regulatory agencies
True
False

QUESTION 28
Manufacturing Inventory is one of the three inventory accounts a manufacturing company may have
True
False

QUESTION 29
Selling and administrative expenses are product costs.
True
False

QUESTION 30
Finished goods inventory for a manufacturing company is the equivalent of merchandise inventory for a merchandising company
True
False