| Managerial accounting applies to each of the following types of businesses except | it applies to all firms |
| Managerial accounting information is generally prepared for | managers |
| Managerial accounting does not encompass | calculating earnings per share |
| Which of the following statements about internal reports is not true | most internal reports are summarized rather than detailed |
| Both direct and indirect materials are | raw materials |
| Manufacturing costs include | direct materials, direct labor, manufacturing overhead |
| Which of the following is not a cost element in manufacturing a product | office salaries |
| Which of the following is not classified as direct labor | wages of supervisers |
| Because of automation, which component of product cost is declining | direct labor |
| Manufacturing costs that cannot be classified as either direct materials or direct labor are known as | manufacturing overhead |
| What is work in progress inventory usually described as | costs applicable to units that have been started in production but are only partially completed |
| Cost of goods manufactured calculation | beginning WIP+ direct materials used+ direct labor + manufacturing overhead -ending WIP |
| For inventoriable costs to become expenses under the matching principle | the 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 cost | wages of salesperson |
| Property taxes on a manufacturing plant are an element of | product cost but not period |
| Which of the following does not appear on the balance sheet of a manufacturing company | cost of goods manufactured |
| Which of the following is a component of cost accounting | involves measuring product costs |
| The two basic types of cost accounting systems are | job order and process cost systems |
| A process cost system would most likely be used by a company that makes | breakfast cereal |
| Process costing is used when | the production process is continuous |
| Which one of the following best describes a job cost sheet | form 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 is | a job cost sheet |
| Manufacturing overhead is applied to each job | by means of a predetermined overhead rate |
| Which one should be equal to the balance of the WIP inventory account at the end of the period | the sum of the costs shown on the job cost sheets of unfinished jobs |
| Predetermined overhead rate is based on the relationship between | estimated annual costs and expected annual activity |
| The predetermined overhead rate is | determined at the beginning of the year |
| Overhead application is recorded with a | credit to manufacturing overhead |
| If manufacturing overhead account has a debit balance at the end of the year it means that | actual 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 adjusting | cost of goods sold |
| If actual overhead is greater than applied manufacturing overhead then manufacturing overhead is | underapplied |
| The existence of under or over applied overhead at the end of the year | requires an adjustment to cost of goods sold |
