Chapter 002, Managerial Accounting and Cost Concepts

| October 3, 2018

18. 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.

19. The plans of management are expressed formally in: A. the annual
report to shareholders.
B. Form 10-Q submitted to
the Securities and Exchange Commission. C. performance reports.
D. budgets.

20. Which of the following IS a characteristic of financial accounting?
A. not mandatory
B. must follow GAAP

C. emphasis
on relevance of data, rather than precision D. both A and C above

21.
The corporate controller’s
salary would be considered a(n):

A.
manufacturing cost.

B. product cost.

C.
administrative cost.

D.
selling expense.

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Chapter 002, Managerial Accounting and Cost Concepts

22. The costs of direct materials are classified as:
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A.
Choice A

B. Choice B

C.
Choice C

D.
Choice D

23. Manufacturing overhead:

A.
can be either a variable
cost or a fixed cost.
B.
includes the costs of
shipping finished goods to customers.

C. includes all factory labor costs.

D.
includes all fixed costs.

24. The three basic elements of manufacturing cost are direct
materials, direct labor, and: A. cost of goods manufactured.
B. cost of
goods sold. C. work in process.

D. manufacturing overhead.

25.
Prime cost consists of
direct materials combined with:

A.
direct labor.
B.
manufacturing overhead.

C. indirect materials.

D.
cost of goods manufactured.

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Chapter 002, Managerial Accounting and Cost Concepts

26. Which terms below
correctly describe the cost of the black paint used to paint the dots on a pair
of dice?
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A.
Choice A

B.
Choice B

C. Choice C

D.
Choice D

27. 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 these.

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