Managerial Accounting Exam 1 graded A+ with answers 2023

Who is managerial accounting for? - managers and internal users 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 - B) Places emphasis on special-purpose information Managerial Accounting is a field of accounting that provides economic information for external users. (True/False) - False The primary users of managerial accounting information are external users who are stockholders, creditors and regulatory agencies. (True/False) - False The purpose of reports in managerial accounting is to provide special-purpose information for a particular user for a specific decision. (True/False) - True Which of the following does not apply to the content of managerial reports? A) Reporting standard is relevant to the decision to be made B) May extend beyond the double entry accounting system C) Pertains to subunits of the entity and may be very detailed D) Pertains to the entity as a whole and is highly aggregated - D) Pertains to the entity as a whole and is highly aggregated What are the three management functions? - Planning, Directing and Controlling According to the Sarbanes Oxley Act of 2002, a chief executive officer or chief financial officer who misrepresents the company's finances may be penalized by being... A) Fired, but not imprisoned B) Imprisoned, but not fined C) Removed from the corporate office and fined D) Fined and imprisoned - D) Fined and imprisoned Managerial accountants have a single role within an organization, collecting and reporting costs to management. (True/False) - False Financial accounting reports are general-purpose and intended for external users. (True/False) - True Managerial accounting reports are special-purpose and issued as frequently as needed. (True/False) - True Managers' activities and responsibilities can be classified into three broad functions: cost accounting, budgeting, and internal control. (True/False) - False As a result of the Sarbanes-Oxley Act, managerial accounting reports must now comply with generally accepted accounting principles (GAAP) (True/False) - False Top managers must certify that a company maintains an adequate system of internal controls. (True/False) - True Manufacturing Costs vs. Manufacturing Overhead - Costs = Direct Materials and Direct Labor Overhead = Everything else (indirectly affects costs) Manufacturing inventory is one of the three inventory accounts a manufacturing company may have. (True/False) - False The three accounts are: 1) Raw Materials Inventory 2) Work In Progress Inventory 3) Finished Goods Inventory Which of the following is not an element of manufacturing overhead? A) Sales manager's salary B) Plant manager's salary C) Factory repairman's wages D) Product inspector's salary - A) Sales manager's salary Product Costs vs. Period Costs - Product - Direct materials, Direct labor and Manufacturing overhead (integral part of producing the product) Period - Non-manufacturing costs; selling expenses and administrative costs Direct materials and direct labor are... A) Period costs B) Product costs C) Overhead costs D) Indirect costs - B) Product Costs A bicycle company has these costs: tires, salaries of employees who put tires onthe wheels, factory building depreciation, wheel nuts, spokes, salary of factory manager, ha