A306 Healy Final Exam Practice Questions With Verified Answers.

A306 Healy Final Exam Practice Questions With Verified Answers. Which statement best describes management accounting? A) management accounting is mainly focused on past results. B) Management accounting reports are rules based using GAAP. C) the main users of management accounting info are outside the firm. D) management accounting reports are prepared following the National Management Accounting Standards (NMAS) E) Management accounting is primarily used for decision making. - answeranswer: E which of the following statements is false? A) creditors would be a user of financial accounting information. B) management accounting information is used to develop budgets. C) financial accounting information emphasizes decisions for the future. D) reports based on management accounting info are created when required. - answeranswer: C which of the following statements is false? A) prime costs are always direct costs. B) manufacturing costs can be direct or indirect. C)selling & admin costs are only indirect. D) direct labor is both a prime cost and a conversion cost. - answeranswer: C during the month of April, direct labor cost totaled $16000 and direct labor cost was 50% of prime cost. If total manufacturing costs during April were $78000, the manufacturing overhead was...: A) $62,000 B) $32,000 C) $46,000 D) $16,000 - answeranswer: C explanation: Direct material= 16k (if DL 50% of prime costs then DL=DM) + Direct Labor= 16k + MOH= ? =total Mfg cost of 78k (16k+16k+ ?= 78k) ?= 46,000 Shannon would like to open a full size Scoop Shop. Assume floor space is available at a rental rate of $30,000 per year in increments of 1,000 square feet. If Shannon needs 2,500 square feet, how much will she pay in rent for the year? A. $30,000 B. $60,000 C. $75,000 D. $90,000 - answeranswer: D explanation: even though she only needs 2500 square feet, she must pay in increments of 1,000 square feet. SO she will have to buy 3,000 square feet. 30k * 3= $90,000 Which of the following statements are true? A) opportunity cost is the value of the next best option B) indirect manufacturing costs are called manufacturing overhead C) al product costs are direct. D) sunk costs are relevant to a decision. E) costs on the financial income statement are organized by a product and period. F) A, B, and E - answeranswer: F if the scoop shop sold 14,000 cakes at $25 per cake, how much will profit increase if 1 more cake is sold? Given information= Revenues: $350,000 gross margin: $189,000