Accounting Exam 2

Managerial accounting applies to each of the following types of businesses exceptit applies to all firms
Managerial accounting information is generally prepared formanagers
Managerial accounting does not encompasscalculating earnings per share
Which of the following statements about internal reports is not truemost internal reports are summarized rather than detailed
Both direct and indirect materials areraw materials
Manufacturing costs includedirect materials, direct labor, manufacturing overhead
Which of the following is not a cost element in manufacturing a productoffice salaries
Which of the following is not classified as direct laborwages of supervisers
Because of automation, which component of product cost is decliningdirect labor
Manufacturing costs that cannot be classified as either direct materials or direct labor are known asmanufacturing overhead
What is work in progress inventory usually described ascosts applicable to units that have been started in production but are only partially completed
Cost of goods manufactured calculationbeginning WIP+ direct materials used+ direct labor + manufacturing overhead -ending WIP
For inventoriable costs to become expenses under the matching principlethe product to which they attach must be sold
For a manufacturing company which of the following is an example of a period cost rather than a product costwages of salesperson
Property taxes on a manufacturing plant are an element ofproduct cost but not period
Which of the following does not appear on the balance sheet of a manufacturing companycost of goods manufactured
Which of the following is a component of cost accountinginvolves measuring product costs
The two basic types of cost accounting systems arejob order and process cost systems
A process cost system would most likely be used by a company that makesbreakfast cereal
Process costing is used whenthe production process is continuous
Which one of the following best describes a job cost sheetform used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job
The principal accounting record used in assigning costs to jobs isa job cost sheet
Manufacturing overhead is applied to each jobby means of a predetermined overhead rate
Which one should be equal to the balance of the WIP inventory account at the end of the periodthe sum of the costs shown on the job cost sheets of unfinished jobs
Predetermined overhead rate is based on the relationship betweenestimated annual costs and expected annual activity
The predetermined overhead rate isdetermined at the beginning of the year
Overhead application is recorded with acredit to manufacturing overhead
If manufacturing overhead account has a debit balance at the end of the year it means thatactual overhead costs were greater than overhead costs applied to jobs
At the end of the year, any balance in the manufacturing overhead account is generally eliminated by adjustingcost of goods sold
If actual overhead is greater than applied manufacturing overhead then manufacturing overhead isunderapplied
The existence of under or over applied overhead at the end of the yearrequires an adjustment to cost of goods sold