The Sarbanes-Oxley Act applies to both mangerial accounting and financial accounting.

	True
	False

Direct materials and direct labor are examples of product costs.

	True
	False

The value chain is all the activities associated with providing a product or service.

	True
	False

Managerial accounting does not encompass

A)	accumulating and presenting data for management decsion making.

B)	adhering to general accepted accounting principles.

C)	determining cost behavior.

D)	profit planning.

Financial statements for external users can be described as

A)	user-specific.

B)	general-purpose.

C)	special-purpose.

D)	managerial reports.

The reporting standard for internal financial reports is

A)	relevance.

B)	rule-of thumb standard.

C)	generally accepted accounting principles.

D)	determined by the auditors.

What activities and responsibilities are not associated with management's functions?

A)

Planning

B)	Accountability

C)	Controlling

D)

Directing

Both direct materials and indirect materials are

A)	raw materials.

B)	manufacturing overhead.

C)	merchandise inventory.

D)	sold directly to customers by a manufacturing company.

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

A)	Indirect labor

B)	Direct labor

C)	Insurance on factory building

D)	Indirect materials

Because of automation, which component of product cost is declining?

A)	Direct labor

B)	Direct materials

C)	Manufacturing overhead

D)	Advertising

Which one of the following is an example of a period cost?

A)	A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer.

B)	Workers' compensation insurance on factory workers' wages allocated to the factory.

C)	Advertising costs to promote a new product.

D)	Depreciation of the factory equipment.

Which one of the following costs would not be inventoriable?

A)	Income taxes

B)	Factory insurance costs

C)	Depreciation on the factory building

D)	Indirect labor costs

Product costs consist of

A)	direct materials and direct labor only.

B)	direct materials, direct labor, and manufacturing overhead.

C)	selling and administrative expenses.

D)	overhead only.

Using the following information, compute the cost of direct materials used.

Raw materials inventory, January 1	$ 50,000
Raw materials inventory, December 31	75,000
Work in process, January 1	30,000
Work in process, December 31	20,000
Finished goods, January 1	60,000
Finished goods, December 31	48,000
Raw materials purchases	900,000
Direct labor	690,000
Factory utilities	230,000
Indirect labor	80,000
Factory depreciation	500,000
Operating expenses	630,000

A)

$875,000.

B)	$1,025,000.

C)

$925,000.

D)	$1,270,000.

Assuming the cost of direct materials used is $900,000, compute the total manufacturing costs using the information below.

Work in process, January 1	30,000
Work in process, December 31	20,000
Finished goods, January 1	60,000
Finished goods, December 31	48,000
Direct labor	690,000
Factory utilities	230,000
Indirect labor	80,000
Factory depreciation	500,000
Operating expenses	630,000

A)	$1,710,000.

B)	$2,340,000.

C)	$2,400,000.

D)	$3,030,000.

Assuming that the total manufacturing costs are $2,400,000, compute the cost of goods manufactured using the information below.

Work in process, January 1	30,000
Work in process, December 31	20,000
Finished goods, January 1	60,000
Finished goods, December 31	48,000
Direct labor	690,000
Factory utilities	230,000
Indirect labor	80,000
Factory depreciation	500,000
Operating expenses	630,000

A)	$2,380,000.

B)	$2,470,000.

C)	$2,410,000.

D)	$3,040,000.

Assuming that the cost of goods manufactured is $2,760,000 compute the cost of goods sold using the following information.

Work in process, January 1	30,000
Work in process, December 31	20,000
Finished goods, January 1	60,000
Finished goods, December 31	50,000
Direct labor	690,000
Factory utilities	230,000
Indirect labor	80,000
Factory depreciation	500,000
Operating expenses	630,000

A)	$2,750,000.

B)	$2,700,000.

C)	$3,400,000.

D)	$2,770,000.

A performance-measurement approach that uses both financial and nonfinancial measures to evaluate a company's operations in an integrated fashion is called

Question 20 options:

A)	Activity-based costing system

B)	Balanced scorecard system

C)	Value chain system

D)	Total quality management system