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Managerial Accounting exam 1 definitions (1)
Managerial Accounting exam 1 definitions (1)
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Managerial Accounting exam 1definitions
Which of the following items are representative of managerial accounting?
Note: Check all that apply.
A) Financial statement in accordance with GAAP
B) Monthly sales reports used internally to allocate funds to divisions
C) Audited financial statements submitted to bankers with credit application
D) Annual financial reports submitted to the SEC in compliance with federal
securities laws
E) Divisional profit reports used to allocate bonuses - CORRECT ANSWER-B, E
Which of the following costs are not included in the cost of manufacturing a product?
Note: Check all that apply.
A) Administrative support
B) Production materials
C) Factory janitor's wages
D) Marketing
E) Production workers' wages - CORRECT ANSWER-A, D
All of the following are features of managerial accounting except:
A) information is provided primarily to insiders such as managers.
B) information includes economic and non-financial data as well as financial data.
C) information is characterized by objectivity, reliability, consistency, and accuracy.
D) information is reported continuously with a present or future orientation. -
CORRECT ANSWER-C
Select the incorrect statement regarding the relationship between type of user and
type of information.
A) Middle managers need more nonfinancial, or operational data than do senior
executives.
B) Assembly line supervisors need more immediate feedback on performance than
do senior executives.
C) Senior executives need less aggregated information than do lower-level
managers.
D) Senior executives use general economic information as well as financial
information. - CORRECT ANSWER-C
Which group would use managerial accounting data of XY Company?
A) Stockholders
B) Managers
C) Executives
, D) Both managers and executives
E) All of the groups would use managerial accounting data - CORRECT ANSWER-D
Which of the following is a feature of managerial accounting information?
A) Information is not distributed to the public
B) Information reports on the company as a whole
C) Information is focused on the past
D) Information is reported annually - CORRECT ANSWER-A
Which of the following costs would be classified as a direct cost for a company that
produces motorcycles?
A) Rent of manufacturing facility that produces motorcycles.
B) Seats used in the motorcycles.
C) Wages of motorcycle assembly workers.
D) Both seats used in the motorcycles and wages of motorcycle assembly workers
are correct. - CORRECT ANSWER-D
During its first year of operations, Connor Company paid $40,510 for direct materials
and $19,100 in wages for production workers. Lease payments and utilities on the
production facilities amounted to $8,100. General, selling, and administrative
expenses were $9,100. The company produced 6,100 units and sold 5,100 units for
$16.10 a unit. The average cost to produce one unit is which of the following
amounts?
A) $11.10
B) $12.59
C) $13.28
D) $9.53 - CORRECT ANSWER-A
During Year 2, Skip Company paid $25,700 for direct materials and $11,700 for
production workers' wages. Lease payments and utilities on the production facilities
amounted to $16,700 while general, selling, and administrative expenses totaled
$6,700. Based on this information, what is the total manufacturing cost?
A) $28,400
B) $54,100
C) $60,800
D) $37,400 - CORRECT ANSWER-B
During its first year of operations, Forrest Company paid $30,000 for direct materials
and $50,000 in wages for production workers. Lease payments, utility costs, and
depreciation on factory equipment totaled $15,000. General, selling, and
administrative expenses were $20,000. The average cost to produce one unit was
$2.50. How many units were produced during the period?
A) 40,000
B) 46,000
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