ACG 2071 Exam Questions with Correct Answers
Question 1:
Managerial Accounting
Answer:
accounting used to provide information and analyses to managers inside the organization to
assist them in decision making
Question 2:
Managerial vs. Financial Accounting
Answer:
Primary users:
M-Internal users managers.
Question 3:
M-plan, direct, control operations and business decisions. F-help external users make investing
& lending decisions. Primary Accounting Product:
M-Internal accounting report. F-financial statements. Included in report & format:
M-management decides when to report only if benefit of using report exceeds cost of preparing
report. F-GAAP
Underlying basis of Info:
M-Focuses on future, provides info on external and internal transactions. F-historical
transactions with external parties.
Cost of goods sold includes
Answer:
Direct materials and direct labor associated with the production process
Question 4:
Manufactuing Costs
Answer:
direct materials, direct labor, manufacturing overhead
Question 5:
period costs (operating expenses)
Answer:
costs that are taken directly to the income statement as expenses in the period in which they
are incurred
, Question 6:
Product Costs (COGS)
Answer:
All costs that are involved in acquiring or making a product. In the case of manufactured goods,
these costs consist of direct materials, direct labor, and manufacturing overhead.
Question 7:
product costs examples
Answer:
plant supervisor, direct material, and direct raw material
Question 8:
Direct Materials
Answer:
Materials that become an integral part of a finished product and whose costs can be
conveniently traced to it.
Question 9:
Direct labor
Answer:
the work of factory employees that can be physically and directly associated with converting
raw materials into finished goods
Question 10:
manufacturing overhead (COGS)
Answer:
the indirect costs associated with the production process that are not directly tied to a specific
product.
Question 11:
Schedule of cost of goods manufactured
Answer:
A schedule showing the direct materials, direct labour, and manufacturing overhead costs
incurred for a period and assigned to work in process and completed goods.
Question 1:
Managerial Accounting
Answer:
accounting used to provide information and analyses to managers inside the organization to
assist them in decision making
Question 2:
Managerial vs. Financial Accounting
Answer:
Primary users:
M-Internal users managers.
Question 3:
M-plan, direct, control operations and business decisions. F-help external users make investing
& lending decisions. Primary Accounting Product:
M-Internal accounting report. F-financial statements. Included in report & format:
M-management decides when to report only if benefit of using report exceeds cost of preparing
report. F-GAAP
Underlying basis of Info:
M-Focuses on future, provides info on external and internal transactions. F-historical
transactions with external parties.
Cost of goods sold includes
Answer:
Direct materials and direct labor associated with the production process
Question 4:
Manufactuing Costs
Answer:
direct materials, direct labor, manufacturing overhead
Question 5:
period costs (operating expenses)
Answer:
costs that are taken directly to the income statement as expenses in the period in which they
are incurred
, Question 6:
Product Costs (COGS)
Answer:
All costs that are involved in acquiring or making a product. In the case of manufactured goods,
these costs consist of direct materials, direct labor, and manufacturing overhead.
Question 7:
product costs examples
Answer:
plant supervisor, direct material, and direct raw material
Question 8:
Direct Materials
Answer:
Materials that become an integral part of a finished product and whose costs can be
conveniently traced to it.
Question 9:
Direct labor
Answer:
the work of factory employees that can be physically and directly associated with converting
raw materials into finished goods
Question 10:
manufacturing overhead (COGS)
Answer:
the indirect costs associated with the production process that are not directly tied to a specific
product.
Question 11:
Schedule of cost of goods manufactured
Answer:
A schedule showing the direct materials, direct labour, and manufacturing overhead costs
incurred for a period and assigned to work in process and completed goods.
