管理會(huì)計(jì)練習(xí)題.doc

Chapter 018 Managerial Accounting Concepts and Principles23.Direct materials are not usually easily traced to a product.FALSE24.Costs may be classified by many different cost classifications.TRUE28.Direct costs are incurred for the benefit of more than one cost object.FALSE31.An opportunity cost requires a future cash outlay and is relevant for decision making.FALSE32.Period costs are incurred by purchasing merchandise or manufacturing finished goods.FALSE33.Product costs can be classified as one of three types: direct materials, direct labor, or overhead.TRUE34.Product costs are expenditures necessary and integral to finished products.TRUE35.Selling and administrative expenses are normally product costs.FALSE36.The cost of partially completed products is included in the balance of the Goods in Process Inventory account.TRUE37.Manufacturers usually have three inventories: raw materials, goods in process, and finished goods.TRUE38.The main difference between the income statement of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.FALSE39.Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.TRUE40.Raw materials inventory includes only direct materials.FALSE41.The Goods in Process Inventory account is found only in the ledgers of merchandising companies.FALSE42.Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventoryFALSE43.Four factors come together in the manufacturing process: beginning goods in process inventory, direct materials, direct labor, and factory overhead.TRUE44.Newly completed units are combined with beginning finished goods inventory to make up total ending goods in process inventory.FALSEAACSB: AnalyticAICPA BB: IndustryAICPA FN: MeasurementDifficulty: EasyLearning Objective: C745.The series of activities that add value to a companys products or services is called a value chain.TRUEAACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: MediumLearning Objective: C746.For a manufacturing firm, cycle time may be computed as process time + inspection time + move time wait time.FALSEAACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: EasyLearning Objective: A147.A manufacturers cost of goods manufactured is the sum of direct materials, direct labor, and factory overhead costs incurred in producing products.TRUEAACSB: AnalyticAICPA BB: IndustryAICPA FN: MeasurementDifficulty: EasyLearning Objective: P148.Indirect materials are accounted for as factory overhead because they are not easily traced to specific units or batches of production.TRUEAACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: MediumLearning Objective: P149.Indirect labor refers to the cost of the workers whose efforts are directly traceable to specific units or batches of product.FALSEAACSB: AnalyticAICPA BB:IndustryAICPA FN: MeasurementDifficulty: MediumLearning Objective: P150.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.FALSEAACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: MediumLearning Objective: P151.Factory overhead includes selling and administrative expenses because they are indirect costs of a product.FALSEAACSB: AnalyticAICPA BB: IndustryAICPA FN: MeasurementDifficulty: MediumLearning Objective: P152.Prime costs consist of direct labor and factory overhead.FALSEAACSB: AnalyticAICPA BB: IndustryAICPA FN: MeasurementDifficulty: MediumLearning Objective: P153.The manufacturing statement is also known as the schedule of manufacturing activities or the schedule of cost of goods manufactured.TRUEAACSB: CommunicationsAICPA BB: IndustryAICPA FN: ReportingDifficulty: MediumLearning Objective: P254.The manufacturing statement must be prepared monthly as it is a required general-purpose financial statement.FALSEAACSB: CommunicationsAICPA BB: IndustryAICPA FN: ReportingDifficulty: MediumLearning Objective: P2Multiple Choice Questions55.Managerial accounting information:A.Is used mainly by external users.B.Involves gathering information about costs for planning and control decisions.C.Is generally the only accounting information available to managers.D.Can be used for control purposes but not for planning purposes.E.Has little to do with controlling costs.AACSB: CommunicationsAICPA BB: IndustryAICPA FN: Decision MakingDifficulty: EasyLearning Objective: C156.Managerial accounting is different from financial accounting in thatA.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.AACSB: CommunicationsAICPA BB: IndustryAICPA FN: ReportingDifficulty: EasyLearning Objective: C157.Flexibility of practice when applied to managerial accounting means thatA.The information must be presented in electronic format so that it is easily changed.B.Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for.C.The managerial accountants need to be on call twenty-four hours a day.D.The design of a companys managerial accounting system largely depends on the nature of the business and the arrangement of the internal operations of the company.E.Managers must be flexible with information provided in varying forms and using inconsistent measures.AACSB: CommunicationsAICPA BB: IndustryAICPA FN: ReportingDifficulty: EasyLearning Objective: C158.Which of the following items represents a difference between financial and managerial accounting?A.Users of the information.B.Flexibility of practices.C.Timeliness and time dimension of the information reported.D.Nature of the information.E.All of these.AACSB: CommunicationsAICPA BB: IndustryAICPA FN: ReportingDifficulty: EasyLearning Objective: C159.Which of the following items are management concepts that were created to improve companies performances?A.Just-in-time manufacturing.B.Customer orientation.C.Total quality management.D.Continuous improvement.E.All of these.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: EasyLearning Objective: C260.The Malcolm Baldridge Award was established byA.The United Nations.B.The U.S. Chamber of Commerce.C.The Malcolm Baldridge Foundation.D.The U.S. Congress.E.The SEC.AACSB: AnalyticAICPA BB: IndustryAICPA FN: MeasurementDifficulty: MediumLearning Objective: C261.Continuous improvement:A.Is a measure of profits.B.Is a measure of costs.C.Rejects the notion of good enough.D.Is not applicable to most businesses.E.Is possible only in service businesses.AACSB: AnalyticAICPA BB: IndustryAICPA FN: ResearchDifficulty: MediumLearning Objective: C262.An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:A.Continuous improvement.B.Customer orientation.C.Just-in-time.D.Theory of constraints.E.Total quality measurement.AACSB: AnalyticAICPA BB: IndustryAICPA FN: ResearchDifficulty: MediumLearning Objective: C263.A management concept that encourages all managers and employees to be in tune with the wants and needs of customers, and which leads to flexible product designs and production processes, is called:A.Continuous improvement.B.Customer orientation.C.Just-in-time.D.Theory of constraints.E.Total quality management.AACSB: AnalyticAICPA BB: MarketingAICPA FN: ResearchDifficulty: MediumLearning Objective: C264.An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:A.Continuous improvement.B.Customer orientation.C.Just-in-time manufacturing.D.Theory of constraints.E.Total quality management.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: MediumLearning Objective: C265.A management concept that applies quality improvement to all aspects of business activities is called:A.Continuous operations.B.Customer orientation.C.Just-in-time.D.Theory of constraints.E.Total quality management.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: MediumLearning Objective: C266.The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:A.Total quality management.B.Managerial accounting.C.Customer orientation.D.Continuous improvement.E.Lean business model.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: Risk AnalysisDifficulty: MediumLearning Objective: C267.Benny, an employee of Parrott Company, used company assets for his own personal gain. This is an example ofA.embezzlementB.fraudC.internal controlD.ethicsE.employment perksAACSB: EthicsAICPA BB: LegalAICPA FN: Risk AnalysisDifficulty: MediumLearning Objective: C368.An employee is dissatisfied with the resolution of an ethical conflict at his place of employment. According to the Institute of Management Accountants, the employees next step should be toA.contact the IMAB.contact the next level of management who is not involved in the ethical conflictC.make the president of the company aware of the ethical conflictD.report the incident to the State Board of AccountancyE.resign from the companyAACSB: EthicsAICPA BB: LegalAICPA FN: Risk AnalysisDifficulty: MediumLearning Objective: C369.A direct cost is a cost that is:A.Identifiable as controllable.B.Variable with respect to the volume of activity.C.Fixed with respect to the volume of activity.D.Traceable to a cost object.E.Sunk with respect to a cost object.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: EasyLearning Objective: C470.An opportunity cost is:A.An uncontrollable cost.B.A cost of potential benefit lost.C.A change in the cost of a component.D.A direct cost.E.A sunk cost.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: Risk AnalysisDifficulty: EasyLearning Objective: C471.Classifying costs by behavior involves:A.Identifying fixed cost and variable cost.B.Identifying cost of goods sold and operating costs.C.Identifying all costs.D.Identifying costs in a physical manner.E.Identifying both quantitative and qualitative cost factors.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: EasyLearning Objective: C472.Costs classified by controllability are useful for:A.The balance sheet.B.The income statement.C.Management reports.D.Evaluation reports.E.Both C and D.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: Reporting, MeasurementDifficulty: MediumLearning Objective: C473.A mixed cost:A.Requires the future outlay of cash and is relevant for future decision making.B.Does not change with changes in the volume of activity within the relevant range.C.Is directly traceable to a cost object.D.Contains a combination of fixed costs and variable costs.E.Has already been incurred and cannot be avoided so it is irrelevant for decision making.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: MediumLearning Objective: C474.A fixed cost:A.Requires the future outlay of cash and is relevant for future decision making.B.Does not change with changes in the volume of activity within the relevant range.C.Is directly traceable to a cost object.D.Changes with changes in the volume of activity within the relevant range.E.Has already been incurred and cannot be avoided so it is irrelevant for decision making.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: MediumLearning Objective: C475.Last year, Smith Company sold 10,000 units of its only product. If sales increase by 15% in the current year, how will unit variable cost and unit fixed cost be affected? A.Choice AB.Choice BC.Choice CD.Choice DE.Choice EAACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: HardLearning Objective: C476.A primary difference between variable costs and fixed costs is:A.Variable costs per unit change in varying increments while fixed costs per unit change in equal increments over the relevant range of activity.B.Variable costs per unit fluctuate and fixed costs per unit remain constant over the relevant range of activity.C.Variable costs per unit are fixed and fixed costs per unit are variable over the relevant range of activity.D.Variable costs per unit change in equal increments while total fixed costs change in proportion to the level of activity over the companys relevant range.E.Total variable costs are fixed and fixed costs per unit never change over the relevant range of activity.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: HardLearning Objective: C477.Period costs for a manufacturing company would flow directly to:A.The current income statement.B.Factory overhead.C.The current balance sheet.D.Job cost sheet.E.The current manufacturing statement.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: EasyLearning Objective: C578.For product costs associated with a particular product to be expensed on the income statement:A.The product must be transferred to Finished Goods Inventory.B.The product must still be in Goods In Process Inventory.C.The product must be sold.D.The product may be in any of the manufacturers inventory accounts.E.The company must expect to sell the product during the next twelve months.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: ReportingDifficulty: HardLearning Objective: C579.Costs that are first assigned to inventory are called:A.Period costs.B.Product costs.C.General costs.D.Administrative costs.E.Fixed costs.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: MediumLearning Objective: C580.Costs that flow directly to the current income statement are called:A.Period costs.B.Product costs.C.General costs.D.Balance sheet costs.E.Capitalized costs.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: MediumLearning Objective: C581.Product costs:A.Are expenditures necessary and integral to finished products.B.Are expenditures identified more with a time period rather than with finished products.C.Include selling and administrative expenses.D.Are costs that vary with the volume of activity.E.Are costs that do not vary with the volume of activity.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: MeasurementDifficulty: MediumLearning Objective: C582.Products that have been completed and are ready to be sold by the manufacturer are called:A.Finished goods inventory.B.Goods in process inventory.C.Raw materials inventory.D.Cost of goods sold.E.Factory supplies.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: ReportingDifficulty: EasyLearning Objective: C683.Goods a company acquires to use in making products are called:A.Cost of goods sold.B.Raw materials inventory.C.Finished goods inventory.D.Goods in process inventory.E.Conversion costs.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: ReportingDifficulty: EasyLearning Objective: C684.Products that are in the process of being manufactured but are not yet complete are called:A.Raw materials inventory.B.Conversion costs.C.Cost of goods sold.D.Goods in process inventory.E.Finished goods inventory.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: ReportingDifficulty: EasyLearning Objective: C685.Another title for goods in process inventory is:A.Indirect materials inventory.B.Work in process inventory.C.Conversion costs.D.Direct materials inventory.E.Raw materials inventory.AACSB: AnalyticAICPA BB: Resource ManagementAICPA FN: ReportingDifficulty: EasyLearning Objective: C686.Which of the following represents the correct formula for calculating cycle time for a manufacturer?A.Process time + i