Question 1

Financial accounting focuses on external users,while managerial accounting focuses on internal users.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is classified as a general and administrative expense?

Accepted Answer

A)  Salaries of sales personnel.
B)  Utility costs for the production facility.
C)  Salaries of production supervisors.
D)  Salaries of Human Resource Department personnel.
E)  None of the above.

Question 3

The treasurer is typically in charge of all finance and accounting functions within an organization.

Accepted Answer

A) True 
 B)False

Question 4

Managerial accounting information must follow U.S.Generally Accepted Accounting Principles (GAAP).

Accepted Answer

A) True 
 B)False

Question 5

The managerial accountant typically reports to the:

Accepted Answer

A)  controller.
B)  chief executive officer.
C)  financial accountant.
D)  tax accountant.
E)  None of the above.

Question 6

The term "product costs" refers exclusively to the direct labor used in the production process.

Accepted Answer

A) True 
 B)False

Question 7

The term "factory burden" is synonymous with manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following costs would not be included in manufacturing overhead?

Accepted Answer

A)  Depreciation of factory building.
B)  Direct labor.
C)  Indirect labor.
D)  Indirect materials.
E)  None of the above.

Question 9

The cost of completed goods transferred out of Work in Process Inventory to Finished Goods is called Cost of Goods Manufactured.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements about computerized accounting systems is false?

Accepted Answer

A)  Even small accounting packages like QuickBooks have features used for managerial accounting purposes.
B)  The size of an organization and the information needs of an organization are important in determining which accounting software is appropriate.
C)  Enterprise Resource Planning (ERP) systems are appropriate for all companies.
D)  Accounting systems are typically used for internal and external reporting purposes.
E)  None of the above.

Question 11

Sampson Company had a Cost of Goods Sold of $730,000 and Cost of Goods Manufactured of $940,000 for the year ended December 31,2012.If the January 1,2012 balance in the Finished Goods Inventory account was $180,000,what was the December 31,2012,balance in Finished Goods Inventory?

Accepted Answer

A)  $1,850,000
B)  $1,120,000
C)  $520,000
D)  $390,000
E)  None of the above.

Question 12

A managerial accountant is most likely to prepare all of the following reports except:

Accepted Answer

A)  a weekly report on the percent of products returned by customers.
B)  a budgeted income statement for next quarter.
C)  a balance sheet in accordance with U.S.GAAP.
D)  a report showing the percentage of on-time deliveries.
E)  None of the above.

Question 13

Which of the following would be most likely to use managerial accounting information?

Accepted Answer

A)  Bondholder.
B)  Production manager.
C)  Vendor.
D)  Stockholder.
E)  None of the above.

Question 14

Insurance costs for a production facility are best classified as selling costs.

Accepted Answer

A) True 
 B)False

Question 15

There is one standard form of budget used by all companies.

Accepted Answer

A) True 
 B)False

Question 16

When a manufacturing company sells its products,Finished Goods is debited and Cost of Goods Sold is credited.

Accepted Answer

A) True 
 B)False

Question 17

Enterprise Resource Planning (ERP)systems are only used by large publicly held organizations.

Accepted Answer

A) True 
 B)False

Question 18

The term "public company" refers to:

Accepted Answer

A)  a company whose shares of stock are publicly traded.
B)  a company with a treasurer and tax accountant.
C)  a company whose shares of stock are privately traded.
D)  a company with a small number of shareholders.
E)  None of the above.

Question 19

If you compare financial statements prepared in accordance with U.S.GAAP to a managerial accounting report,the managerial accounting report is more likely to:

Accepted Answer

A)  provide financial information for the company as a whole.
B)  focus on users of financial information outside the company.
C)  provide financial information related to the last accounting period.
D)  provide financial information at the product level.
E)  None of the above.

Question 20

An example of selling costs would be salaries for marketing personnel.

Accepted Answer

A) True 
 B)False

Exam 1: What Is Managerial Accounting

The treasurer is typically in charge of all finance and accounting functions within an organization.

Correct AnswerverifiedShow Answer

Financial accounting focuses on external users,while managerial accounting focuses on internal users.

Correct AnswerverifiedShow Answer

The term "public company" refers to:

Correct AnswerverifiedShow Answer

A managerial accountant is most likely to prepare all of the following reports except:

Correct AnswerverifiedShow Answer

There is one standard form of budget used by all companies.

Correct AnswerverifiedShow Answer

Enterprise Resource Planning (ERP)systems are only used by large publicly held organizations.

Correct AnswerverifiedShow Answer

The cost of completed goods transferred out of Work in Process Inventory to Finished Goods is called Cost of Goods Manufactured.

Correct AnswerverifiedShow Answer

Managerial accounting information must follow U.S.Generally Accepted Accounting Principles (GAAP).

Correct AnswerverifiedShow Answer

Insurance costs for a production facility are best classified as selling costs.

Correct AnswerverifiedShow Answer

The managerial accountant typically reports to the:

Correct AnswerverifiedShow Answer

Which of the following is classified as a general and administrative expense?

Correct AnswerverifiedShow Answer

Which of the following costs would not be included in manufacturing overhead?

Correct AnswerverifiedShow Answer

An example of selling costs would be salaries for marketing personnel.

Correct AnswerverifiedShow Answer

When a manufacturing company sells its products,Finished Goods is debited and Cost of Goods Sold is credited.

Correct AnswerverifiedShow Answer

Sampson Company had a Cost of Goods Sold of $730,000 and Cost of Goods Manufactured of $940,000 for the year ended December 31,2012.If the January 1,2012 balance in the Finished Goods Inventory account was $180,000,what was the December 31,2012,balance in Finished Goods Inventory?

Correct AnswerverifiedShow Answer

If you compare financial statements prepared in accordance with U.S.GAAP to a managerial accounting report,the managerial accounting report is more likely to:

Correct AnswerverifiedShow Answer

Which of the following would be most likely to use managerial accounting information?

Correct AnswerverifiedShow Answer

The term "product costs" refers exclusively to the direct labor used in the production process.

Correct AnswerverifiedShow Answer

The term "factory burden" is synonymous with manufacturing overhead.

Correct AnswerverifiedShow Answer

Which of the following statements about computerized accounting systems is false?

Correct AnswerverifiedShow Answer

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