ACCT 472.21 Ch. 15

Managerial accounting is applicable toservice entities, manufacturing entities, and not-for-profit entities.
(all of these)
For a manufacturing company, which of the following is an example of a period cost rather than a product cost?Wages of salespersons
Which one of the following would not be classified as manufacturing overhead?Direct materials
Managerial accounting applies to each of the following types of businesses exceptManagerial accounting applies to all types of firms.
Which of the following statements about internal reports is not true?Most internal reports are summarized rather than detailed.
The managerial function of controllingincludes performance evaluation by management.
A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n)indirect material.
Cotter pins and lubricants used irregularly in a production process are classified asindirect materials.
What is “balanced” in the balanced scorecard approach?The emphasis on financial and non-financial performance measurements
The subtotal, “Cost of goods manufactured” appears ona manufacturing company’s income statement.
In determining whether planned goals are being met, a manager is performing the function ofcontrolling
Which one of the following costs would not be inventoriable?Period costs
Both direct materials and indirect materials areraw materials.
On the costs of goods manufactured schedule, depreciation on factory equipmentappears in the manufacturing overhead section.
Product costs are also calledinventoriable costs.
The major reporting standard for presenting managerial accounting information isrelevance
Manufacturing costs includedirect materials, direct labor, and manufacturing overhead.
A distinguishing feature of managerial accounting isvery detailed reports.
Internal reports must be communicatedas needed
The function that pertains to keeping the activities of the enterprise on track iscontrolling
Which one of the following does not appear on the balance sheet of a manufacturing company?Cost of goods manufactured
Financial and managerial accounting are similar in that bothdeal with the economic events of an enterprise
If the total manufacturing costs are greater than the cost of goods manufactured, which of the following is correct?Work in Process Inventory has increased.
Managerial accounting information is generally prepared formanagers
Managerial accounting does not encompasscalculating earnings per share.
Managerial accounting informationpertains to subunits of the entity and may be very detailed.
What is work in process inventory generally described asCosts applicable to units that have been started in production but are only partially completed
Manufacturing costs that cannot be classified as either direct materials or direct labor are known asmanufacturing overhead.
The work of factory employees that can be physically and directly associated with converting raw materials into finished goods isdirect labor.
For inventoriable costs to become expenses under the matching principle,the product to which they attach must be sold.
Internal reports are generallydetailed
Which one of the following characteristics would likely be associated with a just-in-time inventory method?Minimal finished goods inventory on hand
The wages of a timekeeper in the factory would be classified asindirect labor.
Which of the following is not classified as direct labor?Wages of supervisors
What is “balanced” in the balanced scorecard approach?The emphasis on financial and non-financial performance measurements
The principal difference between a merchandising and a manufacturing income statement is thecost of goods sold section.
Many companies now focus on reducing defects in finished products with the goal of zero defects. This is calledTotal quality management.
The equivalent of finished goods inventory for a merchandising firm is referred to asmerchandise inventory.
A manufacturing company reports cost of goods manufactured as a(n)component in the calculation of cost of goods sold on the income statement.
Product costs consist ofdirect materials, direct labor, and manufacturing overhead.
As inventoriable costs expire, they becomecost of goods sold.
Which of the following is not a management function?Constraining
Which of the following is not an internal user?Creditor