ACCT 2000 Exam 3 with verified detailed solutions

ACCT 2000 Exam 3 with verified detailed solutions ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Managerial Accounting - correct answer✔✔Applies to all types of businesses, including
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service, merchandising, and manufacturing as well as to all forms of business
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organizations.



Places emphasis on special-purpose information.
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Does not involve independent audits.
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Reports are generated as needed, it is primarily for internal users such as officers and
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managers, it does not require an audit by a CPA. ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Financial Accounting is _____ while Managerial Accounting is ______ - correct
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answer✔✔highly aggregated, detailed for decision making ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Managerial Accounting provides more detailed information than Financial Accounting
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Controlling - correct answer✔✔The process of keeping the company's activities on track.
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Management's Three Broad Functions - correct answer✔✔Planning, Directing, and ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Controlling



After the passage of the Sarbanes-Oxley (SOX) Act... - correct answer✔✔CEO's and CFO's
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must certify that financial statements give a fair presentation of the company's operating
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results.

, Planning - correct answer✔✔Requires management to look ahead and establish objectives.
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Indirect Materials - correct answer✔✔Do not physically become part of the physical
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product and/or cannot be traced because their physical association with the product is too
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small in terms of cost.
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Manufacturing Overhead - correct answer✔✔Consists of costs that are indirectly ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




associated with the manufacture of the finished product. ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Manufacturing Costs - correct answer✔✔Direct Materials, Direct Labor, Manufacturing ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Overhead



Which of the following costs would a computer manufacturer include in manufacturing
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overhead? - correct answer✔✔(1) wages earned by computer assemblers ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




(2) depreciation on testing equipment
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(3) cost of memory chips
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(4) cost of disk drives
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ANSWER: (2) depreciation on testing equipment ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||




Which of the following is NOT an element of manufacturing overhead? - correct
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answer✔✔(1) sales manager's salary ||\\|//|| ||\\|//|| ||\\|//||




(2) product inspector's salary
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(3) plant manager's salary
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(4) factory repairman's wages
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ANSWER: (1) sales manager's salary ||\\|//|| ||\\|//|| ||\\|//|| ||\\|//||