Managerial Accounting

Managerial Accounting
Exam 1 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.
Answer: D AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement LO: 1 Level: Easy 2. The plans of management are often expressed formally in: A) financial statements. B) performance reports. C) budgets. D) ledgers.
Answer: C AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Measurement LO: 1 Level: Easy 3. The phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making is called: A) throughput time. B) managerial accounting. C) financial accounting. D) controlling.
Answer: B AACSB: Reflective Thinking AICPA BB: Resource Management AICPA FN: Measurement LO: 1 Level: Easy
4. The cost of the cushions that are used to manufacture sofas is best described as a: A) manufacturing overhead cost. B) period cost. C) variable cost. D) conversion cost. Ans: C AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1,2,5 Level: Medium
5. A security guard's wages at a factory would be an example of:

Indirect labor
Fixed manufacturing overhead
A)
No
No
B)
Yes
Yes
C)
Yes
No
D)
No
Yes
Ans: B AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1,5 Level: Medium Source: CPA, adapted 6. Materials used in the operation of a factory, such as cleaning supplies, that are not an integral part of the final product should be classified as: A) direct materials. B) a period cost. C) administrative expense. D) manufacturing overhead.