MANAGERIAL
ACCOUNTING
(SEVENTH EDITION)
FINAL EXAM (CH.
1,2,3,5,7,9,10,11,12)/
132 QUESTION AND
ANSWERS (A+)
Managerial Accounting:
a) is governed by generally accepted accounting
principles
b) places emphasis on special-purpose
information
c) pertains to the entity as a whole and is highly
aggregated
d) is limited to cost data - √Answer>B
-The management of an organization performs
several broad functions. They are:
a) planning, directing, selling
b) planning, directing, controlling
c) planning, manufacturing, controlling
d) directing, manufacturing, controlling -
√Answer>B
,-Direct Materials are a:
Product Cost?
MO Cost?
Period Cost? - √Answer>Yes, no, no. (Just
product cost)
-Which of the following costs would a computer
manufacturer include in MO?
a) cost of disk drive
b) wages of computer assemblers
c) cost of memory chips
d) depreciation on testing equipment - √Answer>D
-Which of the following is not an element of MO?
a) sales manager salary
b) plant manager salary
c) factory repairman wages
d) product inspector salary - √Answer>A
-Indirect Labor is a:
a) nonmanufacturing cost
b) raw material cost
c) product cost
d) period cost - √Answer>C
-Which of the following costs are classified as a
period cost?
a) Wages paid to factory custodian
,b) Wages paid to production department
supervisor
c) Wages paid to cost accounting department
supervisor
d) Wages paid to an assembly worker -
√Answer>C
-For the year, Redder Company has COGM of
$600,000, Beginning F/G Inv. of $200,000, and
ending F/G Inv. of $250,000. The cost of goods
sold is:
a) $450,000
b) $500,000
c) $550,000
d) $600,000 - √Answer>C
-Cost of goods available for sale is a step in the
calculation of cost of goods sold of:
a) merchandising company, but not manufacturing
company
b) manufacturing company, but not merchandising
company
c) both manufacturing and merchandising
companies
d) neither manufacturing or merchandising
companies - √Answer>C
-A COGM schedule shows beginning and ending
inventories for:
a) RM and WIP only
, b) WIP only
c) RM only
d) RM, WIP, and F/G - √Answer>A
-The formula to determine the cost of goods
manufactured is:
a) beginning RM inv + total manufacturing costs -
ending WIP inv
b) beginning WIP inv + total manufacturing costs -
ending FG inv
c) beginning FG inv + total manufacturing costs -
ending FG inv
d) beginning WIP inv + total manufacturing costs -
ending WIP inv - √Answer>D
-After passage of the Sarbanes-Oxley Act:
a) reports prepared by managerial accountants
must be audited by CPA's
b) CEO's and CFO's must certify that financial
statements give a fair presentation of the
company's operating results
c) the audit committee, rather than top
management, us responsible for the company's
financial statements
d) reports prepared by managerial accountants
must comply with generally accepted accounting
principles (GAAP) - √Answer>B
ACCOUNTING
(SEVENTH EDITION)
FINAL EXAM (CH.
1,2,3,5,7,9,10,11,12)/
132 QUESTION AND
ANSWERS (A+)
Managerial Accounting:
a) is governed by generally accepted accounting
principles
b) places emphasis on special-purpose
information
c) pertains to the entity as a whole and is highly
aggregated
d) is limited to cost data - √Answer>B
-The management of an organization performs
several broad functions. They are:
a) planning, directing, selling
b) planning, directing, controlling
c) planning, manufacturing, controlling
d) directing, manufacturing, controlling -
√Answer>B
,-Direct Materials are a:
Product Cost?
MO Cost?
Period Cost? - √Answer>Yes, no, no. (Just
product cost)
-Which of the following costs would a computer
manufacturer include in MO?
a) cost of disk drive
b) wages of computer assemblers
c) cost of memory chips
d) depreciation on testing equipment - √Answer>D
-Which of the following is not an element of MO?
a) sales manager salary
b) plant manager salary
c) factory repairman wages
d) product inspector salary - √Answer>A
-Indirect Labor is a:
a) nonmanufacturing cost
b) raw material cost
c) product cost
d) period cost - √Answer>C
-Which of the following costs are classified as a
period cost?
a) Wages paid to factory custodian
,b) Wages paid to production department
supervisor
c) Wages paid to cost accounting department
supervisor
d) Wages paid to an assembly worker -
√Answer>C
-For the year, Redder Company has COGM of
$600,000, Beginning F/G Inv. of $200,000, and
ending F/G Inv. of $250,000. The cost of goods
sold is:
a) $450,000
b) $500,000
c) $550,000
d) $600,000 - √Answer>C
-Cost of goods available for sale is a step in the
calculation of cost of goods sold of:
a) merchandising company, but not manufacturing
company
b) manufacturing company, but not merchandising
company
c) both manufacturing and merchandising
companies
d) neither manufacturing or merchandising
companies - √Answer>C
-A COGM schedule shows beginning and ending
inventories for:
a) RM and WIP only
, b) WIP only
c) RM only
d) RM, WIP, and F/G - √Answer>A
-The formula to determine the cost of goods
manufactured is:
a) beginning RM inv + total manufacturing costs -
ending WIP inv
b) beginning WIP inv + total manufacturing costs -
ending FG inv
c) beginning FG inv + total manufacturing costs -
ending FG inv
d) beginning WIP inv + total manufacturing costs -
ending WIP inv - √Answer>D
-After passage of the Sarbanes-Oxley Act:
a) reports prepared by managerial accountants
must be audited by CPA's
b) CEO's and CFO's must certify that financial
statements give a fair presentation of the
company's operating results
c) the audit committee, rather than top
management, us responsible for the company's
financial statements
d) reports prepared by managerial accountants
must comply with generally accepted accounting
principles (GAAP) - √Answer>B
