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Summary Test bank for Managerial Accounting 15th edition by Carl S. Warren [edit]
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Full download please contact u84757@protonmail.com or qidiantiku.comChapter 01 - Introduction to Managerial Accounting
1. Managerial accounting reports must be prepared according to generally accepted accounting principles.
a. True
b. False
ANSWER: False
2. Managerial accounting uses only past data in reports to aid management in the decision-making process.
a. True
b. False
ANSWER: False
3. Managerial accounting information includes both historical and estimated data.
a. True
b. False
ANSWER: True
4. Although finance and accounting professionals often work within verticals and other horizontals, they do not normally
report directly to the heads of those units or departments.
a. True
b. False
ANSWER: True
5. A diagram of the operating structure of an organization is called an organization chart.
a. True
b. False
ANSWER: True
6. The functions reporting to the CFO sometimes are grouped together and referred to as corporate finance.
a. True
b. False
ANSWER: True
7. In smaller companies, the term controller may be used to refer to the chief financial officer.
a. True
b. False
ANSWER: True
8. A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff
responsibilities.
a. True
b. False
ANSWER: True
9. Horizontals are departments within a company that are responsible for developing products.
a. True
b. False
ANSWER: False
Full download please contact u84757@protonmail.com or qidiantiku.com
,Full download please contact u84757@protonmail.com or qidiantiku.com
Chapter 01 - Introduction to Managerial Accounting
10. While no two company structures are identical, most large companies are organized in terms of verticals and
diagonals.
a. True
b. False
ANSWER: False
11. Verticals prepare their own income statements.
a. True
b. False
ANSWER: True
12. Managerial accounting reports are designed to meet the specific needs of a company’s management.
a. True
b. False
ANSWER: True
13. Planning is the process of monitoring operating results and comparing actual results with the expected results.
a. True
b. False
ANSWER: False
14. Planning is the process of developing the company’s objectives or goals and translating these objectives into courses
of action.
a. True
b. False
ANSWER: True
15. Controlling deals with choosing goals and deciding how to achieve them.
a. True
b. False
ANSWER: False
16. Controlling is the process of monitoring operating results and comparing actual results with the expected results.
a. True
b. False
ANSWER: True
17. Managers use managerial information to evaluate performance of a company’s operation.
a. True
b. False
ANSWER: True
18. Managerial information is for external as well as internal stakeholders.
a. True
b. False
Full download please contact u84757@protonmail.com or qidiantiku.com
,Full download please contact u84757@protonmail.com or qidiantiku.com
Chapter 01 - Introduction to Managerial Accounting
ANSWER: False
19. A report analyzing how many products need to be sold to cover operating costs is not typically a managerial
accounting report.
a. True
b. False
ANSWER: False
20. A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial
accounting report.
a. True
b. False
ANSWER: True
21. A performance report that identifies the amount of employee downtime is a financial accounting report.
a. True
b. False
ANSWER: False
22. Managerial accounting provides useful information to managers on product costs.
a. True
b. False
ANSWER: True
23. The payment of dividends is an example of a cost.
a. True
b. False
ANSWER: False
24. A cost is a sacrifice made to obtain some benefit.
a. True
b. False
ANSWER: True
25. Goods that are partway through the manufacturing process, but not yet complete, are referred to as materials
inventory.
a. True
b. False
ANSWER: False
26. The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead
cost.
a. True
b. False
ANSWER: True
Full download please contact u84757@protonmail.com or qidiantiku.com
, Full download please contact u84757@protonmail.com or qidiantiku.com
Chapter 01 - Introduction to Managerial Accounting
27. The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.
a. True
b. False
ANSWER: False
28. The cost of wages paid to employees directly involved in converting materials to finished product is classified as
direct labor cost.
a. True
b. False
ANSWER: True
29. If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct
materials cost.
a. True
b. False
ANSWER: False
30. For a construction contractor, the wages of carpenters would be classified as factory overhead cost.
a. True
b. False
ANSWER: False
31. For an automotive repair shop, the wages of mechanics would be classified as direct labor cost.
a. True
b. False
ANSWER: True
32. Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as
factory overhead cost.
a. True
b. False
ANSWER: True
33. Depreciation on factory plant and equipment is an example of factory overhead cost.
a. True
b. False
ANSWER: True
34. The cost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost.
a. True
b. False
ANSWER: False
35. If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of
factory overhead cost.
a. True
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