MBUS 300; Chapter 19 Review
Questions with complete solutions
19.1 (LO 1) 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. - ANS ✔✔(b) places emphasis on special-purpose information.
Managerial accounting emphasizes special-purpose information. The other choices are incorrect
because (a) financial accounting is governed by generally accepted accounting principles, (c)
financial accounting pertains to the entity as a whole and is highly aggregated, and (d) cost
accounting and cost data are a subset of management accounting.
19.2 (LO 1) The management of an organization performs several broad functions. They are:
(a) planning directing and selling.
(b) planning directing and controlling.
(c) planning manufacturing and controlling.
(d) directing manufacturing and controlling. - ANS ✔✔(b) planning, directing, and controlling.
Planning, directing, and controlling are the broad functions performed by the management of
an organization. The other choices are incorrect because (a) selling is performed by the sales
group in the organization, not by management (c) manufacturing is performed by the
manufacturing group in the organization, not by management and (d) manufacturing is
performed by the manufacturing group in the organization, not by management.
, 19.3 (LO 2) Direct materials are a:
(a) Product Cost Manufacturing Overhead Cost Period Cost
Yes Yes No
(b)
Product Cost Manufacturing Overhead Cost Period Cost
Yes No No
(c)
Product Cost Manufacturing Overhead Cost Period Cost
Yes Yes Yes
(d)
Product Cost Manufacturing Overhead Cost Period Cost
No No No - ANS ✔✔(b)
Product Cost Manufacturing Overhead Cost Period Cost
Yes No No
Direct materials are a product cost only. Therefore, choices (a), (c), and (d) are incorrect as
direct materials are not manufacturing overhead or a period cost.
19.4 (LO 2) Which of the following costs would a computer manufacturer include in
manufacturing overhead?
(a) The cost of the disk drives.
(b) The wages earned by computer assemblers.
(c) The cost of the memory chips.
(d) Depreciation on testing equipment. - ANS ✔✔(d) Depreciation on testing equipment.
Questions with complete solutions
19.1 (LO 1) 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. - ANS ✔✔(b) places emphasis on special-purpose information.
Managerial accounting emphasizes special-purpose information. The other choices are incorrect
because (a) financial accounting is governed by generally accepted accounting principles, (c)
financial accounting pertains to the entity as a whole and is highly aggregated, and (d) cost
accounting and cost data are a subset of management accounting.
19.2 (LO 1) The management of an organization performs several broad functions. They are:
(a) planning directing and selling.
(b) planning directing and controlling.
(c) planning manufacturing and controlling.
(d) directing manufacturing and controlling. - ANS ✔✔(b) planning, directing, and controlling.
Planning, directing, and controlling are the broad functions performed by the management of
an organization. The other choices are incorrect because (a) selling is performed by the sales
group in the organization, not by management (c) manufacturing is performed by the
manufacturing group in the organization, not by management and (d) manufacturing is
performed by the manufacturing group in the organization, not by management.
, 19.3 (LO 2) Direct materials are a:
(a) Product Cost Manufacturing Overhead Cost Period Cost
Yes Yes No
(b)
Product Cost Manufacturing Overhead Cost Period Cost
Yes No No
(c)
Product Cost Manufacturing Overhead Cost Period Cost
Yes Yes Yes
(d)
Product Cost Manufacturing Overhead Cost Period Cost
No No No - ANS ✔✔(b)
Product Cost Manufacturing Overhead Cost Period Cost
Yes No No
Direct materials are a product cost only. Therefore, choices (a), (c), and (d) are incorrect as
direct materials are not manufacturing overhead or a period cost.
19.4 (LO 2) Which of the following costs would a computer manufacturer include in
manufacturing overhead?
(a) The cost of the disk drives.
(b) The wages earned by computer assemblers.
(c) The cost of the memory chips.
(d) Depreciation on testing equipment. - ANS ✔✔(d) Depreciation on testing equipment.
