Chapter 14

Question 1

True or false the main purpose of managerial accounting is to provide relevant information to it’s managers

Answer 1

True

Question 2

Match the types of accounting
Financial accounting
Managerial accounting

Answer 2

Financial accounting uses past performance using historical information

Managerial accounting uses current performance and future projections

Question 3

Which of the following characteristics describe managerial accounting

Answer 3

Used to make planning and control decisions

Many future projects

Question 4

Managerial accounting primarily provides information to

Answer 4

Internal users

Question 5

Managerial reporting systems are

Answer 5

Flexible

Question 6

True or false
The main purpose of managerial accounting is to provide general purpose financial statements

Answer 6

False

Question 7

Managerial information:

Answer 7

Allows estimates and projections

Question 8

Managerial accounting has the following characteristics

Answer 8

Focus is on internal users

Emphasis on projects, processes, and divisions

Includes mostly monetary and some nonmonetary information

Question 9

The characteristics of the fraud triangle include

Answer 9

Rationalization
Pressure
Opportunity

Question 10

Financial accounting provides information for (internal/external) _______ users, while managerial accounting provides information got (internal/external) ________ decision makers.

Answer 10

Financial- external

Managerial- internal

Question 11

True or false
Managerial accounting provides information to internal managerial and executive employees who are in charge of a company’s business activities.

Answer 11

True

Question 12

Consider a company that manufactures picture frames. Which of the following costs would be considered direct costd?

Answer 12

Oak wood used for frame
Glass used in frame
Wages of assembly line workers

(Anything that is tied to directly to the product)

Question 13

(Managerial/Financial) accounting allows internal users to determine what information they need to make planning and control decisions and is not rule based.

Answer 13

Managerial

Question 14

Direct materials costs for an automobile manufacturer would include all of the following

Answer 14

Tires
Bumpers
Steering wheels
(Not employees who work on the product)
You’re looking for direct materials only.

Question 15

Managerial accounting information is normally provided to managers when?

Answer 15

As they request it

Question 16

The fraud triangle shows three factors that push a person to commit fraud and includes _____ , pressure, and rationalization

Answer 16

Opportunity

Question 17

Those who work directly on the product to convert raw materials into a finished product are known as

Answer 17

Direct labor

Question 18

Which of the following characteristics describe managerial accounting

Answer 18

Used to make planning and control decisions

Many future projections

Question 19

Conversion costs consist of

Answer 19

Direct labor and factory overhead

Question 20

Which of the following are direct costs for a shoe manufacturer

Answer 20

Shoe laborers who make the shoes

Leather used in the shoes

Question 21

Costs which are crucial parts of the finished product are called

Answer 21

Direct costs

Question 22

The efforts of employees who work directly to convert direct materials into the finished product are referred to as

Answer 22

Direct labor

Question 23

Which of the following are product costs for a manufacturer

Answer 23

Depreciation on factory equipment

Direct materials

Question 24

Prime costs consist of

Answer 24

Direct labor and direct materials

Question 25

Consider a service company that provides carpet cleaning. Classify the cost of the hourly workers who clean carpets for customers

Answer 25

Direct Variable

Question 26

Which of the following are indirect costs for the finishing department of a furniture manufacturer?

Answer 26

Electricity cost for the plant Plant managers salary Rent on the manufacturing facility

Question 27

Direct materials cost for an automobile manufacturer would include the following

Answer 27

Steering wheel Bumpers Tires

Question 28

Which of the following are included in Raw materials inventory?

Answer 28

Direct materials

Question 29

Inventory which is partially complete is known as

Answer 29

Work in process

Question 30

Which of the following are period costs for a manufacturer?

Answer 30

Salary for admin staff Rent on office building Sales commission

Question 31

Consider a service company that provides carpet cleaning and used straight line depreciation. classify the cost of the depreciation on the carpet cleaning machines

Answer 31

Indirect Overhead

Question 32

Inventory which is completed but not yet sold by a manufacturer is known as

Answer 32

Finished goods inventory

Question 33

The cost of materials a company purchases to use in making products are

Answer 33

Rae materials

Question 34

Partially complete units are known as

Answer 34

Work in process

Question 35

The cost of goods sold for a manufacturer is computed as

Answer 35

Beginning finished goods inventory plus cost of goods manufactured minus ending finished goods inventory

Question 36

True or false Finished goods are products which are partially complete

Answer 36

False

Question 37

List the following activities in the order in which they occur with the first activity on top

Answer 37

Materials activity Production activity Sales activity

Question 38

Materials activities include

Answer 38

Purchasing materials Raw materials beginning inventory

Question 39

The primary difference between the income statement for a merchandising company and a manufacturing company is in the ___ section

Answer 39

Cost of goods sold

Question 40

Consider a service company that provides carpet cleaning and used straight line depreciation. Classify the cost of the depreciation on the carpet cleaning machines

Answer 40

Overhead Indirect

Question 41

Activities such as using materials and labor to produce finished products are considered ______ activities

Answer 41

Production

Question 42

Activities that include finished goods are considered _____ activities

Answer 42

Sales

Question 43

Activities such as purchasing raw materials are considered ______ activities

Answer 43

Materials

Question 44

Production activities include

Answer 44

Work in process inventory beginning Direct materials used Direct labor used Factory overhead used Factory overhead costs

Question 45

Sales activities include

Answer 45

Finished goods inventory Selling finished products

Question 46

An emphasis on the changing needs of customers is called customer ____

Answer 46

Orientation

Question 47

The following items would be included in the overhead section of the schedule of cost of goods manufactured.

Answer 47

Factory utilities Factory insurance Factory supplies used

Question 48

Compute Cost of goods manufactured

Answer 48

Total manufacturing costs(sum of direct materials, direct labor, and overhead) + beginning work in process inventory - ending work in process inventory

Question 49

Process of analyzing data to identify meaningful relations and trends

Answer 49

Data analytics

Question 50

Graphical depiction of data to help people interpret their meaning

Answer 50

Data visualization

Question 51

Expansion of competitive boundaries which allows customers many choices is called a

Answer 51

Global economy

Question 52

Activities such as using materials and labor to produce products are considered ______ Activities

Answer 52

Production activities

Question 53

A trend where consumers expect to be able to purchase item electronically whenever and wherever they want is known as

Answer 53

E-commerce

Question 54

Understanding the changing needs of customers is referred to as

Answer 54

Customer orientation

Question 55

Lean principles include all of the following except Total quality management Just in time manufacturing Global economy

Answer 55

Global economy

Question 56

A schedule of cost of goods manufactured has the following main sections

Answer 56

Cost of goods manufactured Direct labor Overhead Direct materials

Question 57

Expansion of competition which provides customers with many choices is called a ____ economy

Answer 57

Global economy

Question 58

All of the following are types of e-commerce

Answer 58

Smartphone sales activities Online sales activities Text messaging sales activities

Question 59

Lean practices include those which are designed to eliminate waste while still satisfying the customer. Examples of lean practices include all of the following

Answer 59

Total quality management Just in time manufacturing Continuous improvement

Question 60

The triple bottom line focuses on three measures including

Answer 60

Environmental Social Financial

Question 61

Raw materials inventory turnover formula

Answer 61

Raw materials used ------------------------ Average rate materials inventory

Question 62

A series of activities that add value to a company's products or services is called

Answer 62

Value chain

Question 63

Total overhead cost formula

Answer 63

Indirect costs totalled

Question 64

Cost of goods manufactured formula

Answer 64

Beginning WIP inventory + total manufacturing costs - ending WIP inventory.

Question 65

Days sales in raw materials formula

Answer 65

Ending raw materials inventory/ raw materials used X365

Question 66

The sustainability accounting standards board was established to develop _____ standards for businesses sustainability activities

Answer 66

Reporting standards

Question 67

Raw materials inventory turnover formula

Answer 67

Raw materials used ------------------------------ average raw materials inventory/2