Question 1

The way of doing business whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

Accepted Answer

A)  Total quality management.
B)  Managerial accounting.
C)  Customer orientation.
D)  Continuous improvement.
E)  Lean business model.F) A) and D)
G) A) and E)

Question 2

Use the following information to compute the total manufacturing costs incurred during the period:

Accepted Answer

A)  $36,650
B)  $30,950
C)  $30,650
D)  $30,350
E)  $31,650F) A) and E)
G) C) and D)

Question 3

Prime costs consist of direct labor and factory overhead.

Accepted Answer

A) True 
 B)False

Question 4

The management concept of customer orientation encourages a company to set up its production system to produce large quantities of the same product for all customers.

Accepted Answer

A) True 
 B)False

Question 5

What is fraud as it relates to the business environment?

Accepted Answer

Fraud involves the use of one'...

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Information for the Ace Manufacturing Company follows:
  Calculate the cost of goods manufactured for this company.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30">_TB6311_00...

Question 8

Raw materials used divided by average raw materials inventory is the ____________________.

Accepted Answer

raw materi...

Question 9

Costs that are first assigned to inventory are called:

Accepted Answer

A)  Period costs
B)  Product costs
C)  General costs
D)  Administrative costs
E)  Fixed costsF) A) and D)
G) B) and D)

Question 10

An opportunity cost requires a future cash outlay and is relevant for decision making.

Accepted Answer

A) True 
 B)False

Question 11

Information for Reedy Manufacturing follows:
  Calculate both the cost of goods manufactured and the cost of goods sold for Reedy Manufacturing.

Accepted Answer

The answer of Information for Reedy Manufacturing follows:
  Calculate...

Question 12

Direct materials are not usually easily traced to a product.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is true?

Accepted Answer

A)  The IMA's Statement of Ethical Professional Practice requires management accountants to be incompetent, maintain confidentiality, act with integrity, and communicate information in a fair and credible manner.
B)  The IMA's Statement of Ethical Professional Practice requires management accountants to be competent, maintain confidentiality, eliminate all fraud, and communicate information in a fair and credible manner.
C)  The IMA's Statement of Ethical Professional Practice requires management accountants to be incompetent, maintain confidentiality, act with integrity, and miscommunicate information in a credible manner.
D)  The IMA's Statement of Ethical Professional Practice requires management accountants to be competent, maintain confidentiality, act with integrity, and communicate information in a fair and credible manner.
E)  The IMA's Statement of Ethical Professional Practice requires management accountants to perform certain checks for fraud, act with integrity, and communicate information in a fair and credible manner.F) A) and D)
G) D) and E)

Question 14

Although direct labor and raw materials costs are treated as manufacturing costs and therefore make up part of the finished goods inventory cost, factory overhead is charged to expense as it is incurred because it is a period cost.

Accepted Answer

A) True 
 B)False

Question 15

The process of identifying costs as direct or indirect is referred to as classifying costs by _______________.

Accepted Answer

The answer of The process of identifying costs as direct...

Question 16

Product costs can be classified as one of three types: direct materials, direct labor, or overhead.

Accepted Answer

A) True 
 B)False

Question 17

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

Question 18

The following costs are incurred by a manufacturing company.Classify each cost item as either a period cost or a product cost.If the cost is a product cost, identify it as a prime and/or conversion cost.

Accepted Answer

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Question 19

The salary paid to the supervisor of an assembly line would normally be classified as:

Accepted Answer

A)  Direct labor
B)  Indirect labor
C)  A period cost
D)  A general cost
E)  An assembly costF) A) and C)
G) A) and E)

Question 20

Factory overhead costs normally include all of the following except:

Accepted Answer

A)  Indirect labor costs
B)  Indirect material costs
C)  Selling costs
D)  Factory machinery oil
E)  Factory rentF) C) and D)
G) C) and E)

Exam 1: Managerial Accounting Concepts and Principles

The way of doing business whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

Correct AnswerverifiedShow Answer

Factory overhead costs normally include all of the following except:

Correct AnswerverifiedShow Answer

An opportunity cost requires a future cash outlay and is relevant for decision making.

Correct AnswerverifiedShow Answer

Product costs can be classified as one of three types: direct materials, direct labor, or overhead.

Correct AnswerverifiedShow Answer

Information for the Ace Manufacturing Company follows: Calculate the cost of goods manufactured for this company.

Correct Answerverified_TB6311_00...View AnswerShow Answer

Raw materials used divided by average raw materials inventory is the ____________________.

Correct Answerverifiedraw materi...View AnswerShow Answer

The following costs are incurred by a manufacturing company.Classify each cost item as either a period cost or a product cost.If the cost is a product cost, identify it as a prime and/or conversion cost.

Correct Answerverified_TB6311_00...View AnswerShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Direct materials are not usually easily traced to a product.

Correct AnswerverifiedShow Answer

What is fraud as it relates to the business environment?

Correct AnswerverifiedFraud involves the use of one'...View AnswerShow Answer

Although direct labor and raw materials costs are treated as manufacturing costs and therefore make up part of the finished goods inventory cost, factory overhead is charged to expense as it is incurred because it is a period cost.

Correct AnswerverifiedShow Answer

Costs that are first assigned to inventory are called:

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

The management concept of customer orientation encourages a company to set up its production system to produce large quantities of the same product for all customers.

Correct AnswerverifiedShow Answer

Prime costs consist of direct labor and factory overhead.

Correct AnswerverifiedShow Answer

The process of identifying costs as direct or indirect is referred to as classifying costs by _______________.

Correct AnswerverifiedShow Answer

Use the following information to compute the total manufacturing costs incurred during the period:

Correct AnswerverifiedShow Answer

Information for Reedy Manufacturing follows: Calculate both the cost of goods manufactured and the cost of goods sold for Reedy Manufacturing.

Correct AnswerverifiedShow Answer

The salary paid to the supervisor of an assembly line would normally be classified as:

Correct AnswerverifiedShow Answer

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raw materi...
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Fraud involves the use of one'...
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