During July at Loeb Corporation, $83,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. The journal entry to record the requisition from the storeroom would include a:

debit to Work in Process of $79,000

debit to Work in Process of $83,000

credit to Manufacturing Overhead of $4,000

debit to Raw Materials of $83,000

Inventory is found in the Income Statement

True

False

Managers also need to know whether costs can be traced to specific cost objects - this Relevance

True

False

Direct labour is not a good predictor of overheads under ABC Costing.

True

False

If the opening stock is 100 units, Purchases are 50 units and you consumed 60 units, how much is your closing stock

210

110

90

Cannot be determined

You would see Perpetual inventory system in a car dealership.

True

False

Managerial accounting lays emphasis on precision vs timeliness

True

False

Overhead costs tend to fluctuate with changes in the volume of units produced from period to period.

True

False

In process costing, you do not not wait till you get an order

True

False

Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs:

started in process during the period.

in process during the period.

completed and sold during the period.

completed during the period.

Valuing inventory under variable costing is greater than under absorption costing.

True

False

The costing approach that meets the requirements of financial accounting and tax reporting requirements is:

variable costing

standard costing

absorption costing

throughput costing

Process reengineering is usually strongly accepted by all employees within an organization.

True

False

The main idea underlying the lean business model is the elimination of Waste.

True

False

Opportunity costs are recorded in books of accounts

True

False

The salary of the president of a manufacturing company would be classified as which of the following?

a. Product cost.

b. Period cost

c. Labour cost

d. Sunk cost

Initially labour hours moved in direct proportion to overhead costs.

True

False

Selecting a course of action and specifying how the action will be implemented is part of the Implementing function

False

True

Periodic system is a continuous record of inventory.

True

False

Which of the following costs is often important in decision making, but is omitted from conventional accounting records?

b. Sunk cost.

a. Fixed cost.

c. Opportunity cost.

d. Indirect cost.

Managers often need to understand how costs will behave in response to changes in activity level - this is Traceability

True

False

Sunk costs are not recorded in books of accounts

True

False

Equivalent units are extensively used and found in finished products inventory.

True

False