Chapter 1final

In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT:be prepared in accordance with generally accepted accounting principles
What is the primary criterion for the preparation of managerial accounting reports?b. Meet the manager needs
Which of the following is most associated with managerial accounting?May rely on estimates and forecasts
Which of the following is most associated with financial accounting?Prepared in accordance with GAAP
Which of the following statements is false?There is no overlap between financial and managerial accounting.
In most business organizations, the chief management accountant is called the:b. controller
All of the following employees hold line positions in Anthea Electric EXCEPT:vice president of finance
The controller’s staff often consists of several management accountants. All of the following would most likely be on the controller’s staff EXCEPT:c. investments and shareholder relations managers
9. Managerial accountingis prepared according to management needs.
Who are the individuals charged with the responsibility for directing the day-to-day operations of a business?Managers
Which of the following are basic phases of the management process?d. Planning and controlling
What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?Controlling
What term is used to describe the process of developing the organization’s objectives and translating those into courses of action?Planning
Which of the following is the principle reason for preparing managerial accounting reports?Usefulness to management
Which of the following is not a characteristic of useful managerial accounting reports?GAAP
Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $186,300; Factory Overhead, $187,900; and Selling Expenses, $45,290.$374,200
Which of the following is false in regards to direct materials for an auto manufacturer?Small plastic clips to hold on door panels, that become part of the auto, must be accounted for as direct materials.
The cost of a manufactured product generally consists of which of the following costs?Direct labor cost, direct materials cost, and factory overhead cost
Materials must have which two qualities in order to be classified as direct materials?d. They must be an integral part of the finished product and be a significant portion of the total product cost.
Which of the following is an example of direct materials cost for an automobile manufacturer?Cost of interior upholstery
If the cost of direct materials is a small portion of total production cost, it may be classified as part of:factory overhead cost
The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished product is classified as:direct labor cost
Which of the following is an example of direct labor cost for an airplane manufacturer?Cost of wages of assembly worker
Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as:factory overhead cost
Which of the following is an example of a factory overhead cost?Factory heating and lighting cost
What term is used to refer to the cost of changing direct materials into a finished manufactured product?Conversion cost
Which of the following items would not be classified as part of factory overhead?Direct labor used