Question 1

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

Accepted Answer

Managerial...

Question 2

Continuous improvement:

Accepted Answer

A)   Encourages employees to maintain established business practices.
B)   Strives to preserve acceptable levels of performance.
C)   Rejects the notion of "good enough."
D)   Is not applicable to most businesses.
E)   Is possible only in service businesses.F) B) and D)
G) B) and E)

Question 3

Just-in-time manufacturing techniques can be useful in ________ days' sales in raw materials inventory.

Accepted Answer

A)   keeping constant.
B)   changing upward.
C)   adding to.
D)   lowering.
E)   increasing.F) D) and E)
G) B) and D)

Question 4

Just-in-time manufacturing (JIT) is a system that acquires inventory and produces only when needed.

Accepted Answer

A) True 
 B)False

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

The schedule of cost of goods manufactured 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) C) and D)
G) All of the above

Question 7

Both financial and managerial accounting affect user's decisions and actions.

Accepted Answer

A) True 
 B)False

Question 8

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured for the year was $147,000; and the December 31 finished goods inventory was $77,000. What is the cost of goods sold for the year?

Accepted Answer

The answer of A manufacturing company's finished goods inventory on...

Question 9

Feedback provided by the control function allows managers to revise their plans.

Accepted Answer

A) True 
 B)False

Question 10

Compute the ending work in process inventory for a manufacturer with the following information.
 $$\begin{array} { | l | r | } 
\hline \text { Raw materials purchased } & \$ 131,700 \
\hline \text { Direct materials used in production } & 65,400 \
\hline \text { Direct labor used } & 44,000 \
\hline \text { Total factory overhead used } & 101,600 \
\hline \text { Work in process inventory, beginning of year } & 32,500 \
\hline \text { Cost of goods manufactured } & 212,900 \
\hline
\end{array}$$

Accepted Answer

The answer of Compute the ending work in process inventory...

Question 11

What are the components of the schedule of cost of goods manufactured? Describe each component.

Accepted Answer

The components of the schedule of cost o...

Question 12

Total quality management and just-in-time manufacturing focus on quality improvement as well as on time customer deliveries.

Accepted Answer

A) True 
 B)False

Question 13

Managerial accounting is different from financial accounting in that:

Accepted Answer

A)   Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization.
B)   Managerial accounting never includes nonmonetary information.
C)   Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.
D)   Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors.
E)   Managerial accounting is mainly used to set stock prices.F) B) and C)
G) All of the above

Question 14

A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:

Accepted Answer

A)   Fixed versus variable.
B)   Direct versus indirect.
C)   Financial versus managerial.
D)   Service versus manufacturing.
E)   Product versus period.F) C) and D)
G) B) and C)

Question 15

A manufacturer's total cost of making and finishing products in the period is called:

Accepted Answer

A)   Ending finished goods inventory.
B)   Total manufacturing costs.
C)   Ending work in process inventory.
D)   Cost of goods manufactured.
E)   Cost of goods sold.F) A) and E)
G) A) and C)

Question 16

Which of the following statements is correct concerning the days' sales in raw materials inventory ratio?

Accepted Answer

A)   It measures how long it takes raw materials to be used in production.
B)   The ratio is not useful for a manufacturer.
C)   Reveals how many times a company turns over its raw materials inventory in a period.
D)   Most companies generally prefer a higher number of days' sales in raw materials inventory.
E)   Is calculated by taking the Raw materials used/Average raw materials inventory.F) A) and B)
G) All of the above

Question 17

Wesson Company sold 10,000 units of its only product in the first half of the year. If sales decrease by 15% in the second half of the year, which cost will not change?

Accepted Answer

A)   Direct materials.
B)   Direct labor.
C)   Sales commissions.
D)   Factory supplies.
E)   Depreciation on equipment.F) B) and C)
G) All of the above

Question 18

For product costs associated with a particular product to be reported on the income statement:

Accepted Answer

A)   The product must be transferred to Finished Goods Inventory.
B)   The product must still be in Work in Process Inventory.
C)   The product must be sold.
D)   The product may be in any of the manufacturer's inventory accounts.
E)   The company must expect to sell the product during the next twelve months.F) A) and B)
G) D) and E)

Question 19

For a manufacturer, the cost of goods sold can be computed by adding the beginning finished goods inventory to ________ and then subtracting the ending finished goods inventory.

Accepted Answer

cost of go...

Question 20

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

Accepted Answer

A)   Office salaries expense and factory maintenance are both product costs.
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 and indirect labor are both period costs.F) A) and E)
G) All of the above

Exam 1: Managerial Accounting Concepts and Principles

For a manufacturer, the cost of goods sold can be computed by adding the beginning finished goods inventory to ________ and then subtracting the ending finished goods inventory.

Correct Answer
verified
cost of go...
View Answer

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured for the year was $147,000; and the December 31 finished goods inventory was $77,000. What is the cost of goods sold for the year?

Correct Answer
verified

A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:

Correct Answer
verified

Wesson Company sold 10,000 units of its only product in the first half of the year. If sales decrease by 15% in the second half of the year, which cost will not change?

Correct Answer
verified

Which of the following statements is correct concerning the days' sales in raw materials inventory ratio?

Correct Answer
verified

Managerial accounting is different from financial accounting in that:

Correct Answer
verified

The schedule of cost of goods manufactured is divided into four parts consisting of all of the following except:

Correct Answer
verified

Continuous improvement:

Correct Answer
verified

Feedback provided by the control function allows managers to revise their plans.

Correct Answer
verified

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

Correct Answer
verified
Managerial...
View Answer

Total quality management and just-in-time manufacturing focus on quality improvement as well as on time customer deliveries.

Correct Answer
verified

Just-in-time manufacturing (JIT) is a system that acquires inventory and produces only when needed.

Correct Answer
verified

For product costs associated with a particular product to be reported on the income statement:

Correct Answer
verified

What are the components of the schedule of cost of goods manufactured? Describe each component.

Correct Answer
verified
The components of the schedule of cost o...
View 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 Answer
verified

Correct Answer
verified

Just-in-time manufacturing techniques can be useful in ________ days' sales in raw materials inventory.

Correct Answer
verified

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

Correct Answer
verified

Both financial and managerial accounting affect user's decisions and actions.

Correct Answer
verified

A manufacturer's total cost of making and finishing products in the period is called:

Correct Answer
verified

Exam 1: Managerial Accounting Concepts and Principles

For a manufacturer, the cost of goods sold can be computed by adding the beginning finished goods inventory to ________ and then subtracting the ending finished goods inventory.

Correct Answerverifiedcost of go...View AnswerShow Answer

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured for the year was $147,000; and the December 31 finished goods inventory was $77,000. What is the cost of goods sold for the year?

Correct AnswerverifiedShow Answer

A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:

Correct AnswerverifiedShow Answer

Wesson Company sold 10,000 units of its only product in the first half of the year. If sales decrease by 15% in the second half of the year, which cost will not change?

Correct AnswerverifiedShow Answer

Which of the following statements is correct concerning the days' sales in raw materials inventory ratio?

Correct AnswerverifiedShow Answer

Managerial accounting is different from financial accounting in that:

Correct AnswerverifiedShow Answer

The schedule of cost of goods manufactured is divided into four parts consisting of all of the following except:

Correct AnswerverifiedShow Answer

Continuous improvement:

Correct AnswerverifiedShow Answer

Feedback provided by the control function allows managers to revise their plans.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedManagerial...View AnswerShow Answer

Total quality management and just-in-time manufacturing focus on quality improvement as well as on time customer deliveries.

Correct AnswerverifiedShow Answer

Just-in-time manufacturing (JIT) is a system that acquires inventory and produces only when needed.

Correct AnswerverifiedShow Answer

For product costs associated with a particular product to be reported on the income statement:

Correct AnswerverifiedShow Answer

What are the components of the schedule of cost of goods manufactured? Describe each component.

Correct AnswerverifiedThe components of the schedule of cost o...View AnswerShow 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

Correct AnswerverifiedShow Answer

Just-in-time manufacturing techniques can be useful in ________ days' sales in raw materials inventory.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Both financial and managerial accounting affect user's decisions and actions.

Correct AnswerverifiedShow Answer

A manufacturer's total cost of making and finishing products in the period is called:

Correct AnswerverifiedShow Answer

Correct Answer
verified
cost of go...
View Answer

Correct Answer
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Managerial...
View Answer

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The components of the schedule of cost o...
View Answer

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