Strayer ACC560 Week 2 Quiz 1

ACC 560 WK 2 Quiz 1TRUE-FALSE STATEMENTSReports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports. 2. Managerial accounting information generally pertains to an entity as a whole and is highly aggregated. 3. Managerial accounting applies to all forms of business organizations. 4. Determining the unit cost of manufacturing a product is an output of financial accounting. 5. Managerial accounting internal reports are prepared more frequently than are classified financial statements. 6. The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity. 7. The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company. 8. Controlling is the process of determining whether planned goals are being met. 9. Decision-making is an integral part of the planning, directing, and controlling functions. 10. Direct materials costs and indirect materials costs are manufacturing overhead. 11. Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead. 12. Raw materials are equal to direct materials minus indirect materials. 13. Raw materials that can be conveniently and directly associated with a finished product are called materials overhead. 14. The total cost of a finished product does not generally contain equal amounts of materials, labor, and overhead costs. 15. Both direct labor cost and indirect labor cost are product costs. 16. Period costs include selling and administrative expenses. 17. Indirect materials and indirect labor are both inventoriable costs. 18. Direct materials and direct labour are the only product costs. 19. Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured. 20. Period costs are not inventoriable costs. 21. Ending finished goods inventory appears on both the balance sheet and the income statement of a manufacturing company. 22. The beginning work in process inventory appears on both the balance sheet and the cost of goods manufactured schedule of a manufacturing company. 23. In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales. 24. Finished goods inventory does not appear on a cost of goods manufactured schedule. 25. If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period. 26. Finished goods inventory for a manufacturing company is equivalent to merchandise inventory for a merchandising company. 27. Raw materials inventory shows the cost of completed goods available for sale to customers. 28. The balanced scorecard approach attempts to maintain as little inventory on hand as possible. 29. The supply chain is all the activities associated with providing a product or service. 30. Many companies have significantly lowered inventory levels and costs using just-in-time inventory methods. 31. Managerial accounting is primarily concerned with managers and external users. 32. Planning involves coordinating the diverse activities and human resources of a company to produce a smooth running operation. 33. When the physical association of raw materials with the finished product is too small to trace in terms of cost, they are usually classified as indirect materials. 34. Product costs are also called inventoriable costs. 35. Direct materials become a cost of the finished goods manufactured when they are acquired, not when they are used. 36. The sum of the direct materials costs, direct labor costs, and beginning work in process is the total manufacturing costs for the year.37. In a .strtutorials.com/ACC-560-WK-2-Quiz-1-All-Possible-Questions-017.htm” style=”margin: 0px; padding: 0px; border: 0px; outline: 0px; vertical-align: baseline; color: rgb(155, 136, 31);”>manufacturing company balance sheet, manufacturing inventories are reported in the current assets section in the order of their expected use in production.MULTIPLE CHOICE QUESTIONS 38. Managerial accounting applies to each of the following types of businesses excepta. service firms.b. merchandising firms.c. manufacturing firms.d. Managerial accounting applies to all types of firms. 39. Managerial accounting information is generally prepared fora. stockholders.b. creditors.c. managers.d. regulatory agencies. 40. Managerial accounting informationa. pertains to the entity as a whole and is highly aggregated.b. pertains to subunits of the entity and may be very detailed.c. is prepared only once a year.d. is constrained by the requirements of generally accepted accounting principles. 41. The major reporting standard for presenting managerial accounting information isa. relevance.b. generally accepted accounting principles.c. the cost principle.d. the current tax law. 42. Managerial accounting is also calleda. management accounting.b. controlling.c. analytical accounting.d. inside reporting. 43. Which of the following is not an internal user?a. Creditorb. Department managerc. Controllerd. Treasurer 44. Managerial accounting does not encompassa. calculating product cost.b. calculating earnings per share.c. determining cost behavior.d. profit planning. 45. Managerial accounting is applicable toa. service entities.b. manufacturing entities.c. not-for-profit entities.d. all of these. 46. Management accountants would nota. assist in budget planning.b. prepare reports primarily for external users.c. determine cost behavior.d. be concerned with the impact of cost and volume on profits. 47. Internal reports must be communicateda. daily.b. monthly.c. annually.d. as needed. 48. Financial statements for external users can be described asa. user-specific.b. general-purpose.c. special-purpose.d. managerial reports. 49. Managerial accounting reports can be described asa. general-purpose.b. macro-reports.c. special-purpose.d. classified financial statements. 50. The reporting standard for external financial reports isa. industry-specific.b. company-specific.c. generally accepted accounting principles.d. department-specific. 51. Which of the following statements about internal reports is not true?a. The content of internal reports may extend beyond the double-entry accounting system.b. Internal reports may show all amounts at market values.c. Internal reports may discuss prospective events.d. Most internal reports are summarized rather than detailed. 52. In an analogous sense, external user is to internal user as generally accepted accounting principles are toa. timely.b. special-purpose.c. relevance to decision.d. SEC. 53. Internal reports are generallya. aggregated.b. detailed.c. regulated.d. unreliable. 54. A distinguishing feature of managerial accounting isa. external users.b. general-purpose reports.c. very detailed reports.d. quarterly and annual reports. 55. What activities and responsibilities are not associated with management’s functions?a. Planningb. Accountabilityc. Controllingd. Directing 56. Planning is a function that involvesa. hiring the right people for a particular job.b. coordinating the accounting information system.c. setting goals and objectives for an entity.d. analyzing financial statements. 57. The managerial function of controllinga. is performed only by the controller of a company.b. is only applicable when the company sustains a loss.c. is concerned mainly with operating a manufacturing segment.d. includes performance evaluation by management. 58. Which of the following is not a management function?a. Constrainingb. Planningc. Controllingd. Directing 59. A manager that is establishing objectives is performing which management function?a. Controllingb. Directingc. Planningd. Constraining 60. The management function that requires managers to look ahead and establish objectives isa. controlling.b. directing.c. planning.d. constraining. 61. In determining whether planned goals are being met, a manager is performing the function ofa. planning.b. follow-up.c. directing.d. controlling. 62. Which of the following is not a separate management function?a. Planningb. Directingc. Decision-makingd. ControllingMore Questions are includedItem #: ACC560-04