ACCT 241 ch.1

Which of the following are considered to be management’s three broad functions?Planning, directing, and controlling
Which of the following is considered part of the controlling process?Keeping the company’s activities on track
The management function that requires management to look ahead and establish objectives isplanning
The process of keeping the company’s activities on track iscontrolling
Managerial accounting applies to each of the following types of businesses exceptmanagerial accounting applies to all types of firms
managerial accounting applies to all types of firmsmanagers
Managerial accounting informationpertains to subunits of the entity and may be very detailed
The major reporting standard for presenting managerial accounting information isrelevance
Which of the following is not an internal user?creditor
Planning is a function that involvessetting goals and objectives for an entity
The managerial function of controllingincludes performance evaluation by management
Which of the following is not a management function?constraining
A manager that is establishing objectives is performing which management function?planning
The management function that requires managers to look ahead and establish objectives isplanning
In determining whether planned goals are being met, a manager is performing the function ofcontrolling
Which of the following is not a separate management function?decision-making
Directing includescoordinating a company’s diverse activities and human resources to produce a smooth-running operation
Financial and managerial accounting are similar in that bothdeal with the economic events of an enterprise
The function that pertains to keeping the activities of the enterprise on track iscontrolling
General-purpose reportsFinancial Accounting
Reports are used internallyManagerial accounting
Prepared in accordance with generally accepted accounting principlesFinancial Accounting
Special purpose reportsManagerial Accounting
Limited to historical cost dataFinancial Accounting
Reporting standard is relevance to the decision to be madeManagerial Accounting
Financial statementsFinancial Accounting
Reports generally pertain to the business as a wholeFinancial Accounting
Reports generally pertain to subunitsManagerial Accounting
Reports issued quarterly or annuallyFinancial Accounting
Financial accounting information is prepared mainly for Entry field with correct answer_______ users, while managerial accounting information is prepared primarily for_________ usersexternal,internal
three broad managerial functions are: (1)_________,(2)__________, and (3)_________.planning, directing and controlling
The ________function is concerned with setting goals and objectives for the entity.planning
Exercising good judgment in performing the managerial functions and choosing among alternative courses of action is calleddecision making
frames and tires used in manufacturing bicylesdirect materials
wages paid to production workersdirect labor
insurance on factory equipment and machinerymanufacturing overhead
depreciation on factory equipmentmanufacturing overhead
windshielddirect materials
enginedirect matierals
wages of assembly line workerdirect labor
depreciation of factory machinerymanufacturing overhead
factory machinery lubricantsmanufacturing overhead
tiresdirect materials
steering wheeldirect materials
salary of painting supervisormanufacturing overhead
Barry’s BarBQue incurred the following costs: $1,400 for ribs, 45 hours of labor to cook the ribs at $10 per hour, $50 for seasoning and sauce, $300 for signs to advertise the ribs, $150 to clean the grill after cooking the ribs, and $100 of administrative costs. How much are total product costs?$2,050
Which group of costs consists of only product costs?Direct labor, indirect labor, factory utilities
Product costs include each of the following exceptselling and administrative expenses
Both direct materials and indirect materials areraw materials
The work of factory employees that can be physically and directly associated with converting raw materials into finished goods isdirect labor
Which one of the following would not be classified as manufacturing overhead?direct materials
Which one of the following is not a direct material?Lubricant for a ball-bearing joint for a large crane
Which of the following is not classified as direct labor?wages of supervisors
Cotter pins and lubricants used irregularly in a production process are classified asindirect materials
Because of automation, which component of product cost is declining?direct labor
Which one of the following represents a period cost?The VP of Sales’ salary and benefits
Product costs are also calledinventoriable costs
For inventoriable costs to become expenses under the matching principle,the product to which they attach must be sold.
a.Advertising
b.Direct materials used
c.Sales salaries
d.Indirect factory labor
e.Repairs to office equipment
f.Factory manager’s salary
g.Direct labor
h.Indirect materials
-period cost
-product cost
-period cost
-product cost
-product cost
-period cost
-product cost
-product cost
The three cost elements in manufacturing a product are (1)___________, (2) _______________, and (3)______________.direct materials, direct labor and Manufacturing overhead
The work of factory employees that can be physically and directly associated with converting raw materials into products is classified asdirect labor
Indirect materials and indirect labor are classified asmanufacturing overhead
Each of the manufacturing cost components is a______ cost.product