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Exam 18: Managerial Accounting Concepts and Principles

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Question 51

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One of the main differences between the calculation of cost of goods sold for a merchandiser and that of a manufacturer is that the calculation includes cost of goods purchased for the merchandiser, but the manufacturer replaces that with __________________________.

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Question 52

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Flexibility of practice when applied to managerial accounting means that

A) The information must be presented in electronic format so that it is easily changed.
B) Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for.
C) The managerial accountants need to be on call twenty-four hours a day.
D) The design of a company's managerial accounting system largely depends on the nature of the business and the arrangement of the internal operations of the company.
E) Managers must be flexible with information provided in varying forms and using inconsistent measures.

F) None of the above
G) A) and B)

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Question 53

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For a manufacturing firm, cycle time may be computed as process time + inspection time + move time - wait time.

Cycle time is calculated by process time plus inspection time plus move time plus __________________.

The three major cost components of a manufactured product are:

The salary paid to the supervisor of an assembly line would normally be classified as:

Expenditures that flow directly to the current income statement and are not reported as assets are ___________________ costs.

Direct costs are incurred for the benefit of more than one cost object.

When the attitude of continuous improvement exists throughout an organization, every manager and employee seeks to continuously experiment with new and improved business practices.

Selling and administrative expenses are normally product costs.

Whether a cost is controllable or not controllable by an employee depends on the employee's level of responsibility.

Labor costs that are clearly associated with specific units or batches of product because the labor is used to convert raw materials into finished products are called:

Which of the following items represents a difference between financial and managerial accounting?

Although direct labor and raw materials costs are treated as manufacturing costs and therefore make up part of the finished goods inventory cost, factory overhead is charged to expense as it is incurred because it is a period cost.

A company's prime costs total $4,500,000 and its conversion costs total $5,500,000. If direct materials are $2,000,000, calculate the overhead costs:

Which of the following statements is True regarding product and period costs?

Using the information below, compute the manufacturing cycle time:

An opportunity cost is:

____________________ inventory consists of completed products ready for sale by a manufacturer.

A manufacturer's cost of goods manufactured is the sum of direct materials, direct labor, and factory overhead costs incurred in producing products.