Question 1 of 35 managerial accounting uses which of the following

Question 1  of 35  Managerial accounting uses which of the following types of information?

 

Forecasts of future earnings 

Financial information 

Nonfinancial information 

All of the above

 

Question  2  of 35

The primary goal of financial accounting is to provide information for

 

governmental regulators. 

creditors. 

potential investors. 

all of the above.

 

Question 3  of 35

Which of following statements is true?

 

Managerial accounting focuses on historical transactions. 

Financial accounting focuses on future data. 

Management accounting focuses on relevant data.

Managerial accounting uses the cash basis for recording transactions.

 

Question  4  of 35

Which statement is true?

 

Management uses financial information to analyze costs. 

Management uses financial information to plan internal operations. 

Management uses reports created for internal parties. 

All of the above are true.

 

Question  5  of 35  Which of the following statements is false?

 

Financial accounting helps investors make decisions. 

Financial accounting provides sufficient information for managers to effectively plan and control operations.

Financial accounting reports help creditors make decisions.

Financial accounting provides external reports.

 

Question  6  of 35  Which of the following statements is correct concerning product costs?

 

Product costs are expensed in the period the related product is sold. 

Product costs are expensed in the period incurred. 

Product costs are shown with operating expenses on the income statement. 

Product costs are shown with current liabilities on the balance sheet.

 

Question 7  of 35

Which of the following costs include all costs associated with production of a product?

 

Inventoriable 

Direct 

Mixed

Overhead

 

Question  8  of 35

Manufacturing overhead costs for a product include

 

direct material. 

operating expenses. 

indirect manufacturing costs. 

prime costs.

 

Question 9  of 35

Indirect materials and indirect labor are ________ for a manufactured product.

 

overhead and period costs 

operating and period costs 

overhead and product costs 

operating and product costs

 

Question 10  of 35

Which of the following is an example of an inventoriable cost when manufacturing products?

 

Depreciation on office equipment 

Depreciation on store building 

Sales salaries expenses 

Depreciation on factory equipment

 

Question 11  of 35

A ________ is used to accumulate the costs of a job.

 

labor time record 

materials inventory requisition form 

bill of materials 

job cost record

 

Question 12  of 35

Which of these documents informs the storeroom to send specific materials to the factory floor?

 

Receiving report 

Bill of materials 

Purchase order 

Materials requisition

 

Question 13  of 35

When direct materials are requisitioned, they flow directly into

 

cost of goods sold. 

finished goods inventory. 

work in process inventory. 

manufacturing overhead.

 

Question 14  of 35

In the flow of costs, which of the following comes third?

 

Finished goods inventory 

Cost of goods sold 

Raw materials inventory 

Work in process inventory

 

Question 15  of 35

A ________ is a document which is prepared by manufacturing personnel to request materials for the production process.

 

cost ticket 

job cost record 

materials requisition 

manufacturing ticket

 

Question 16  of 35

Which of the following is the last step of the five-step process costing procedure?

 

Summarize total costs to account for 

Assign total costs to units completed and to units in ending WIP inventory 

Compute the cost per equivalent unit 

Summarize the flow of physical units

 

Question  17  of 35

In Step 1 of the process costing procedure, the “total units accounted for” is the sum of

 

the units completed and transferred out plus the units in ending WIP. 

the units in ending WIP plus the units started in production during the month. 

the units in beginning WIP plus the units in ending WIP. 

the units in beginning WIP plus the units completed and transferred out.

 

Question  18  of 35

Which item would appear last on a production cost report?

 

Cost of goods finished for the month 

Total costs accounted for 

Beginning WIP inventory, if any 

Ending WIP inventory, if any

 

Question  19  of 35

On a production cost report, which of the following cost(s) appear?

 

A. Beginning work in process 

B. Costs added during the period 

C. Total operating costs during the period 

D. Both A and B are included on a production cost report.

 

Question 20  of 35

Which costs comprise WIP inventory on a production cost report?

 

Direct materials and direct labor 

Direct materials and manufacturing overhead 

Direct materials, direct labor, and manufacturing overhead 

Direct labor and manufacturing overhead

 

Question 21  of 35

When a company has established separate manufacturing overhead rates for each department, it is using

 

departmental overhead rates. 

cost distortion. 

a plantwide overhead rate. 

none of the above.

 

Question 22  of 35

Which of the following condition(s) favors using departmental overhead rates in place of a plantwide overhead rate?

 

A. Different departments incur different amounts and types of manufacturing overhead. 

B. Different jobs or products use the departments to a different extent. 

C. Both A and B. 

D. Neither A or B.

 

Question 23  of 35

In using an ABC system, all of the following steps are performed before the company’s year begins except:

 

identify the primary activities and estimate a total cost pool for each. 

select an allocation base for each activity. 

allocate the costs to the cost object using the activity cost allocation rates. 

calculate an activity cost allocation rate for each activity.

 

Question 24  of 35

Research and development would most likely be classified as a ________ cost.

 

unit-level 

batch-level 

facility-level 

product-level

 

Question  25  of 35

Using factory utilities would most likely be classified as a ________ cost.

 

unit-level 

batch-level 

facility-level 

product-level

 

Question  26  of 35

With respect to variable costs per unit, which of the following statements is true?

 

They will decrease as production increases within the relevant range. 

They will increase as production decreases within the relevant range. 

They will decrease as production decreases within the relevant range.

They will remain the same as production levels change within the relevant range.

 

Question 27  of 35

With respect to total variable costs, which of the following statements is true?

 

They will remain the same as production levels change within the relevant range. 

They will decrease as production decreases within the relevant range. 

They will decrease as production increases within the relevant range. 

They will increase as production decreases within the relevant range.

 

Question 28  of 35

Total fixed costs for Taylor Incorporated are $240,000. Total costs, including both fixed and variable, are $500,000 if 125,000 units are produced. The variable cost per unit is

 

$5.92/unit. 

$2.08/unit.  

$4.00/unit. 

$1.92/unit.

 

Question 29  of 35

Total fixed costs for Diamond Enterprises are $800,000. Total costs, including both fixed and variable, are $890,000 if 120,000 units are produced. The fixed cost per unit at 200,000 units would be

 

$4.00/unit   

$7.42/unit. 

$4.45/unit. 

$0.45/unit.

 

Question 30  of 35

Total fixed costs for Randolph Manufacturing are $752,450. Total costs, including both fixed and variable, are $1,000,000 if 150,000 units are produced. The fixed cost per unit at 186,250 units would be closest to

 

$1.31/unit. 

$5.31/unit. 

$4.00/unit.   

$5.03/unit.

 

Question  31  of 35

The unit contribution margin is computed by

 

subtracting the variable cost per unit from the sales price per unit. 

dividing the sales revenue by variable cost per unit. 

dividing the variable cost per unit by the sales revenue. 

subtracting the sales price per unit from the variable cost per unit.

 

Question  32  of 35

The contribution margin ratio explains the percentage of each sales dollar that

 

contributes towards variable costs. 

contributes towards sales revenue. 

contributes towards period expenses. 

contributes towards fixed costs and generating a profit.

 

Question  33  of 35

________ should be subtracted from the sales price per unit to compute the unit contribution margin.

 

All variable costs 

Only variable inventoriable product costs 

Only variable period costs 

All fixed costs

 

Question  34  of 35

By multiplying ________ and then subtracting fixed costs, managers can quickly forecast the operating income.

 

projected sales units by the contribution margin ratio 

projected sales revenue by the contribution margin ratio 

projected sales revenue by the unit contribution margin 

projected sales units by the variable cost ratio

 

Question  35  of 35

Electric Jet Skis operates a Jet Ski rental business. Assume the jet skis rent for $55 for 6 hours. The variable costs are $33 per six-hour rental, and its fixed costs are $80,000 each month. What is the contribution margin per six-hour jet ski rental?

 

$33.00 

$0.40 

$22.00   

$2.50