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Which of the following statements are true regarding financial and managerial accounting?

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Managerial accounting;a. has its primary emphasis on the future.;b. is required by regulatory bodies such as the SEC.;c. focuses on the organization as a whole, rather than on the organization's segments.;d. Responses a, b, and c are all correct.;Save Answer;2.;(Points: 1);Which of the following statements are true regarding financial and managerial accounting?;I. Both are mandatory.;II. Both rely on the same underlying financial data.;III. Both emphasize the segments of an organization, rather than just looking at the organization as a whole.;IV. Both are geared to the future, rather than to the past.;a. I, II, III, and IV;b. Only II, III and IV;c. Only II and III;d. Only II;Save Answer;3.;(Points: 1);Managerial accounting places considerable weight on;a. generally accepted accounting principles.;b. the financial history of the entity.;c. ensuring that all transactions are properly recorded.;d. detailed segment reports about departments, products, and customers.;Save Answer;4.;(Points: 1);The benefits of a successful Just-In-Time system include all of the following except;a. funds tied up in inventories are released for use elsewhere.;b. inventory buffers are increased.;c. throughput time is reduced.;d. defect rates are decreased.;Save Answer;5.;(Points: 1);A key concept of the JIT inventory system is;a. the raw materials, work in process, and finished goods inventories of manufacturing companies act as buffers so that operations can proceed smoothly even if suppliers are late with deliveries or a department is unable to operate for a brief period due to breakdowns or other reasons.;b. the use of many suppliers so as to ensure rapid delivery of materials for production.;c. the maintenance of a stock of raw materials so that defective materials can be replaced quickly so as to maintain a high rate of productivity.;d. inventories are costly to carry and can be kept to minimum levels or eliminated completely with careful planning.;Save Answer;6.;(Points: 1);The just in time (JIT) concept applies to which of the following;I. The acquisition of raw materials.;II. The assembly of manufactured parts in products.;III. The shipment of finished products to customers.;a. I.;b. I, III.;c. I, II, III.;d. II, III.;Save Answer;7.;(Points: 1);The flow of goods through a JIT system is based on;a. a workstation efficiently completing its processing of a batch of units so that the units can proceed forward to the next workstation before the next workstation is ready to receive them.;b. processing goods in large batch sizes rather than less economical small batches.;c. maintaining a stockpile of raw materials in anticipation of materials shortages.;d. producing to meet customer demand with no buildup of inventory at any point in the production process.;Save Answer;8.;(Points: 1);A successful JIT system is based upon which of the following concepts?;a. The company must rely upon a large number of suppliers to ensure frequent deliveries of small lots.;b. The company should always choose those suppliers offering the lowest prices.;c. The company should avoid long-term contracts with suppliers so as to exert pressure on suppliers to make prompt and frequent deliveries.;d. A small number of suppliers make frequent deliveries of specific quantities thus avoiding the buildup of large inventories of materials on hand.;Save Answer;9.;(Points: 1);A danger in Process Reengineering is that;a. non-value-added activities may be eliminated.;b. some resources may no longer be required.;c. employee morale may suffer.;d. all of the above.;Save Answer;10.;(Points: 1);The Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management contains a policy regarding confidentiality that requires that management accountants;a. refrain from disclosing confidential information acquired in the course of their work except when authorized by management.;b. refrain from disclosing confidential information acquired in the course of their work in all situations.;c. refrain from disclosing confidential information acquired in the course of their work except when authorized by management, unless legally obligated to do so.;d. refrain from disclosing confidential information acquired in the course of their work in all cases since the law requires them to do so.;Save Answer;11.;(Points: 1);The Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management states that significant ethical issues should be discussed first with an immediate superior unless the superior is involved. If satisfactory resolution cannot be achieved when the problem is initially presented, then the issues should be;a. submitted to the next higher managerial level.;b. submitted to the chief executive officer of the firm.;c. submitted to the audit committee, executive committee, board of directors, or owners.;d. submitted to outside legal counsel.;Save Answer;12.;(Points: 1);The corporate controller's salary would be considered a(n);a. manufacturing cost.;b. product cost.;c. administrative cost.;d. selling expense.;Save Answer;13.;(Points: 1);The cost of fire insurance for a manufacturing plant is generally considered to be a;a. product cost.;b. period cost.;c. variable cost.;d. all of the above.;Save Answer;14.;(Points: 1);Each of the following would be a period cost except;a. the salary of the company president's secretary.;b. the cost of a general accounting office.;c. depreciation of a machine used in manufacturing.;d. sales commissions.;Save Answer;15.;(Points: 1);For a manufacturing company, which of the following is an example of a period rather than a product cost?;a. Depreciation of factory equipment.;b. Wages of salespersons.;c. Wages of machine operators.;d. Insurance on factory equipment.;Save Answer;16.;(Points: 1);Which of the following would be considered a product cost for external financial reporting purposes?;a. Cost of a warehouse used to store finished goods.;b. Cost of guided public tours through the company's facilities.;c. Cost of travel necessary to sell the manufactured product.;d. Cost of sand spread on the factory floor to absorb oil from manufacturing machines.;Save Answer;17.;(Points: 1);Which of the following would NOT be treated as a product cost for external financial reporting purposes?;a. Depreciation on a factory building.;b. Salaries of factory workers.;c. Indirect labor in the factory.;d. Advertising expenses.;Save Answer;18.;(Points: 1);Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?;a. Product cost;b. Manufacturing overhead;c. Period cost;d. Administrative cost;Save Answer;19.;(Points: 1);Micro Computer Company has set up a toll-free telephone line for customer inquiries regarding computer hardware produced by the company. The cost of this toll-free line would be classified as which of the following?;a. Product cost;b. Manufacturing overhead;c. Direct labor;d. Period cost;Save Answer;20.;(Points: 1);wages of factory maintenance personnel would usually be considered to be;Indirect labor, Manufacturing overhead;a. No, Yes;b. Yes, No;c. Yes, Yes;d. No, No;Save Answer;21.;(Points: 1);Direct materials are a part of;Conversion cost, Manufacturing cost, Prime cost;a. Yes, Yes, No;b. Yes, Yes, Yes;c. No, Yes, Yes;d. No, No, No;Save Answer;22.;(Points: 1);Manufacturing overhead consists of;a. all manufacturing costs.;b. all manufacturing costs, except direct materials and direct labor.;c. indirect materials but not indirect labor.;d. indirect labor but not indirect materials.;Save Answer;23.;(Points: 1);Which of the following should NOT be included as part of manufacturing overhead at a company that makes office furniture?;a. sheet steel in a file cabinet made by the company.;b. manufacturing equipment depreciation.;c. idle time for direct labor.;d. taxes on a factory building.;Save Answer;24.;(Points: 1);Rossiter Company failed to record a credit sale at the end of the year, although the reduction in finished goods inventories was correctly recorded when the goods were shipped to the customer. Which one of the following statements is correct?;a. Accounts receivable was not affected, inventory was not affected, sales were understated, and cost of goods sold was understated.;b. Accounts receivable was understated, inventory was overstated, sales were understated, and cost of goods sold was overstated.;c. Accounts receivable was not affected, inventory was understated, sales were understated, and cost of goods sold was understated.;d. Accounts receivable was understated, inventory was not affected, sales were understated, and cost of goods sold was not affected.;Save Answer;25.;(Points: 1);If the cost of goods sold is greater than the cost of goods manufactured, then;a. work in process inventory has decreased during the period.;b. finished goods inventory has increased during the period.;c. total manufacturing costs must be greater than cost of goods manufactured.;d. finished goods inventory has decreased during the period.;Save Answer;26.;(Points: 1);Last month, when 10,000 units of a product were manufactured, the cost per unit was $60. At this level of activity, variable costs are 50% of total unit costs. If 10,500 units are manufactured next month and cost behavior patterns remain unchanged the;a. total variable cost will remain unchanged.;b. fixed costs will increase in total.;c. variable cost per unit will increase.;d. total cost per unit will decrease.;Save Answer;27.;(Points: 1);Variable cost;a. increases on a per unit basis as the number of units produced increases.;b. remains constant on a per unit basis as the number of units produced increases.;c. remains the same in total as production increases.;d. decreases on a per unit basis as the number of units produced increases.;Save Answer;28.;(Points: 1);Within the relevant range, the difference between variable costs and fixed costs is;a. variable costs per unit fluctuate and fixed costs per unit remain constant.;b. variable costs per unit are constant and fixed costs per unit fluctuate.;c. both total variable costs and total fixed costs are constant.;d. both total variable costs and total fixed costs fluctuate.;Save Answer;29.;(Points: 1);Which of the following statements regarding fixed costs is incorrect?;a. Expressing fixed costs on a per unit basis usually is the best approach for decision making.;b. Fixed costs expressed on a per unit basis will react inversely with changes in activity.;c. Assumptions by accountants regarding the behavior of fixed costs rest heavily on the concept of the relevant range.;d. Fixed costs frequently represent long-term investments in property, plant, and equipment.;Save Answer;30.;(Points: 1);An opportunity cost is;a. the difference in total costs which results from selecting one alternative instead of another.;b. the benefit forgone by selecting one alternative instead of another.;c. a cost which may be saved by not adopting an alternative.;d. a cost which may be shifted to the future with little or no effect on current operations.;Save Answer;31.;(Points: 1);Which of the following costs is often important in decision making, but is omitted from conventional accounting records?;a. Fixed cost.;b. Sunk cost.;c. Opportunity cost.;d. Indirect cost.;Save Answer;32.;(Points: 1);When a decision is made among a number of alternatives, the benefit that is lost by choosing one alternative over another is the;a. realized cost.;b. opportunity cost.;c. conversion cost.;d. accrued cost.;Save Answer;33.;(Points: 1);Conversion cost consists of which of the following?;a. Manufacturing overhead cost.;b. Direct materials and direct labor cost.;c. Direct labor cost.;d. Direct labor and manufacturing overhead cost.;Save Answer;34.;(Points: 1);Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?;a. the cost of the hamburger patty in the burger they ordered.;b. the wages of the employee who takes the customer's order.;c. the cost of heating and lighting the kitchen.;d. the salary of the outlet's manager.;Save Answer;35.;(Points: 1);Green Company's costs for the month of August were as follows: direct materials, $27,000, direct labor, $34,000, sales salaries, $14,000, indirect labor, $10,000, indirect materials, $15,000, general corporate administrative cost, $12,000, taxes on manufacturing facility, $2,000, and rent on factory, $17,000. The beginning work in process inventory was $16,000 and the ending work in process inventory was $9,000. What was the cost of goods manufactured for the month?;a. $105,000;b. $132,000;c. $138,000;d. $112,000;Save Answer;36.;(Points: 1);A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,700 and is paid at the beginning of the first year. Eighty percent of the premium applies to manufacturing operations and 20% applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?;Product, Period;a. $2,700, $0;b. $2,160, $ 540;c. $1,440, $360;d. $720, $180;Save Answer;37.;(Points: 1);Using the following data, calculate the beginning work in process inventory.;Cost of goods sold: $70;Direct labor: $20;Direct materials: $15;Cost of goods manufactured: $80;Work in process ending: $10;Finished goods ending: $15;Manufacturing overhead: $30;The beginning work in process inventory is;a. $20.;b. $15.;c. $55.;d. $25.;Save Answer;38.;(Points: 1);During the month of May, Bennett Manufacturing Company purchased $43,000 of raw materials. The manufacturing overhead totaled $27,000 and the total manufacturing costs were $106,000. Assuming a beginning inventory of raw materials of $8,000 and an ending inventory of raw materials of $6,000, direct labor must have totaled;a. $34,000.;b. $38,000.;c. $36,000.;d. $45,000.;Save Answer;39.;(Points: 1);Using the following data for January, calculate the cost of goods manufactured;Direct materials: $38,000;Direct labor: $24,000;Manufacturing overhead: $17,000;Beginning work in process inventory: $10,000;Ending work in process inventory: $11,000;The cost of goods manufactured was;a. $89,000.;b. $78,000.;c. $79,000.;d. $80,000.;Save Answer;40.;(Points: 1);During the month of June, Reardon Company incurred $17,000 of direct labor, $8,500 of manufacturing overhead and purchased $15,000 of raw materials. Between the beginning and the end of the month, the raw materials inventory increased by $2,000, the finished goods inventory increased by $1,500, and the work in process inventory decreased by $3,000. The cost of goods manufactured would be;a. $38,500.;b. $40,500.;c. $41,500.;d. $43,500.;Save Answer;41.;(Points: 1);Williams Company's direct labor cost is 25% of its conversion cost. If the Manufacturing overhead cost for the last period was $45,000 and the direct materials cost was $25,000, the direct labor cost was;a. $15,000.;b. $60,000.;c. $33,333.;d. $20,000.;Save Answer;42.;(Points: 1);The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and its gross margin was $220,000. If the ending inventory of finished goods was $30,000, the beginning inventory of finished goods must have been;a. $20,000.;b. $50,000.;c. $110,000.;d. $150,000.;Save Answer;43.;(Points: 1);The gross margin for Cushing Company for the first quarter of last year was $325,000 when sales were $700,000. The beginning inventory of finished goods was $60,000 and the ending inventory of finished goods was $85,000. The cost of goods manufactured for the first quarter would have been;a. $375,000.;b. $350,000.;c. $400,000.;d. $385,000.;Save Answer;44.;(Points: 1);Last month a manufacturing company had the following operating results;Beginning finished goods inventory: $74,000;Ending finished goods inventory: $73,000;Sales: $464,000;Gross margin: $52,000;What was the cost of goods manufactured for the month?;a. $413,000;b. $411,000;c. $412,000;d. $463,000;Save Answer;45.;(Points: 1);The following information was provided by Grand Company for the year just ended;Beginning finished goods inventory: $130,425;Ending finished goods inventory: $125,770;Sales: $500,000;Gross margin: $100,000;The cost of goods manufactured for the year was;a. $395,345.;b. $95,345.;c. $104,655.;d. $404,655.;Save Answer;46.;(Points: 1);Delta Merchandising, Inc., has provided the following information for the year just ended;Net sales: $128,500;Beginning inventory: $24,000;Purchases: $80,000;Gross margin: $38,550

 

Paper#26174 | Written in 18-Jul-2015

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