a Wrap Text Share Paste General B I U a. Av F 1 Merge & Center HH $ % ) 4899 Conditional Format cel Formatting as Table Styles 29. Insert Delete Format Sort & Office Update To keep up-to-date with security updates, forces, and improvements, choose Check for Updates Al x fx STUDENT NAME: Fr Se K B D E F G H 1 6 7 A. TRUE OR FALSE: WORTH 2 POINTS EACH. 8 1. Managerial accounting information is designed to meet the specific needs of a company's 9 management and is prepared according to generally accepted accounting principles. 10 11 2. The process by which managers run day-to-day operations is called directing. 12 13 3. Direct cost cannot be identified with or traced to a cost object. An example is salaries 14 paid to a supervisor. 15 16 4. The three cost that go into making a product would include: direct materials, direct labor, 17 and factory burden. 18 19 5. Prime cost consist of direct materials and factory overhead; and conversion cost include 20 direct labor and factory overhead. 21 22 6. Product cost consist of manufacturing cost, selling and administrative expenses; and 23 appear on the income statement. 24 25 7. A manufacturing business reports three types of inventory accounts on its balance 26 sheet as: materials inventory, work in process inventory, and merchandise inventory. Sheet1 Sheet2 Sheet3 M MacBook Pro 23 esc LO Wrap Text Share Paste General B 1 I U > a. Av 35 Merge & Center $ % 9 270 Conditional Format Cell Formatting as Table Styles Insert Delete Format X Sort Filter Find Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates A1 x fx STUDENT NAME: Select Ches B D E F G H - J K 8. Profitability analysis focuses on the relationship between the operating results and the the assets available to a business. 9. A ratio that measures the instant debt-paying ability of a company is the current ratio. 10. The working capital is used to evaluate a company's ability to pay current liabilities. 11. A statement that expresses all items as percentages, with no dollar amounts is horizontal analysis. 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 12. A cost accounting system measures, records, and reports product costs. 13. A job cost system provides product costs for each manufacturing department or process. 14. A receiving report is the same as a material ledger. 15. The process by which factory overhead or other costs are assigned to a cost object is called is predetermined overhead rates. 47 48 16. Underabsorbed factory overhead occurs when the applied factory overhead amount is ml Sheet1 Sheet2 Sheet3 + MacBook Pro OSC & $ % 8 17. In activity based costing (ABC), factory overhead cost is allocated based on one overhead rate rather than multiple overhead rates. 18. Activities are considered to be the types of work, or actions, involved in firms process. 19. Activity rates are determined by dividing the total activity base usage by the budgeted activity cost. 20. Overhead costs of each activity are allocated to a cost object (product) by multiplying the activity base usage by the activity rate