1

1. Managerial accounting internal reports are prepared more frequently than are classified financial statements

   True

   False

2 points

QUESTION 2

1. Period costs generally flow into inventory

   True

   False

2 points

QUESTION 3

1. Many companies have significantly lowered inventory levels and costs using just-in-time inventory methods

   True

   False

2 points

QUESTION 4

1. Both direct labor cost and indirect labor cost are product costs

   True

   False

2 points

QUESTION 5

1. Managerial accounting skills and tools can and should be used extensively in non-profit organizations

   True

   False

2 points

QUESTION 6

1. Managerial accounting applies to each of the following types of businesses except

   a. service firms.

   b. merchandising firms.

   c. manufacturing firms.

   d. Managerial accounting applies to all types of firms.

2 points

QUESTION 7

1. Managerial accounting information is generally prepared for

   a. stockholders.

   b. creditors.

   c. managers.

   d. regulatory agencies.

2 points

QUESTION 8

1. Management accountants would not

   a. assist in budget planning.

   b. prepare reports primarily for external users.

   .

   c. determine cost behavior.

   d. be concerned with the impact of cost and volume on profits

2 points

QUESTION 9

1. Which one of the following would not be classified as manufacturing overhead?

   a. Indirect labor

   b. Direct materials

   c. Insurance on factory building

   d. Indirect materials

2 points

QUESTION 10

1. The product cost that is most difficult to associate with a product is

   a. direct materials.

   b. direct labor.

   c. manufacturing overhead.

   d. advertising.

2 points

QUESTION 11

1. A job order cost system is most appropriate when a large volume of uniform products are produced.

   True

   False

2 points

QUESTION 12

1. The perpetual inventory method cannot be used in a job order cost system

   True

   False

2 points

QUESTION 13

1. A company that produces motion pictures would likely use a process cost system

   True

   False

2 points

QUESTION 14

1. Companies often use a combination of a process cost and a job order cost system, called operations costing

   True

   False

2 points

QUESTION 15

1. Which of the following would most likely be accounted for using a job order cost system?

   a. The production of personal computers.

   b. The production of automobiles.

   c. The refining of petroleum.

   d. The construction of a new campus building.

2 points

QUESTION 16

1. The entry to record the acquisition of raw materials on account is

   a. Work in Process Inventory

   Accounts Payable

   b. Manufacturing Overhead

   Raw Materials Inventory

   Accounts Payable

   c. Accounts Payable

   Raw Materials Inventory

   d. Raw Materials Inventory

   Accounts Payable

2 points

QUESTION 17

1. In process cost accounting, manufacturing costs are summarized on a

   a. job order cost sheet.

   b. process order cost sheet.

   c. production cost report.

   d. manufacturing cost sheet.

2 points

QUESTION 18

1. An important feature of a job order cost system is that each job

   a. must be similar to previous jobs completed.

   b. has its own distinguishing characteristics.

   c. must be completed before a new job is accepted.

   d. consists of one unit of output.

2 points

QUESTION 19

1. Process costing is used when

   a. the production process is continuous.

   b. production is aimed at filling a specific customer order.

   c. dissimilar products are involved.

   d. costs are to be assigned to specific jobs.

2 points

QUESTION 20

1. A process cost system would most likely be used by a company that makes

   a. motion pictures.

   b. repairs to automobiles.

   c. breakfast cereal.

   d. college graduation announcements.

2 points

QUESTION 21

1. Actual overhead costs are debited to the Manufacturing Overhead account

   True

   False

2 points

QUESTION 22

1. The entry to record the cost of goods sold includes a debit to Finished Goods Inventory.

   True

   False

2 points

QUESTION 23

1. Actual overhead costs are debited to the Manufacturing Overhead account

   True

   False

2 points

QUESTION 24

1. The requisition of factory supplies to production requires a debit to the Manufacturing Overhead account.

   True

   False

2 points

QUESTION 25

1. Manufacturing overhead costs generally is not traced directly to a specific job.

   True

   False

2 points

QUESTION 26

1. Managerial accounting is a field of accounting that provides economic information for internal users

   True

   False

2 points

QUESTION 27

1. The primary users of managerial accounting information are external users who are stockholders, creditors, and regulatory agencies

   True

   False

2 points

QUESTION 28

1. Manufacturing Inventory is one of the three inventory accounts a manufacturing company may have

   True

   False

2 points

QUESTION 29

1. Selling and administrative expenses are product costs.

   True

   False

2 points

QUESTION 30

1. Finished goods inventory for a manufacturing company is the equivalent of merchandise inventory for a merchandising company

   True

   False