Chapter 1: Managerial Accounting
(T/F) Financial accounting reports are general-purpose and intended for external users. - ✔✔True
(T/F) Managerial accountants have a single role w/in an organization: collecting and reporting costs to
management - ✔✔False. Managerial accountants do determine product costs, but they are also
responsible for evaluating how well the company employs its resources.
(T/F) Managerial accounting reports are special-purpose and issued as frequently as needed. - ✔✔True
(T/F) Managerial accounting reports must now comply w/ GAAP - ✔✔False. Managerial reports are for
internal use and thus don't have to comply w/ GAAP
(T/F) Managers' activities and responsibilities can be classified into three broad functions: cost
accounting, budgeting, and internal control - ✔✔False. The 3 broad functions are: planning, controlling,
and directing.
A code of ethical standards developed by the Institute of Management Accountants - ✔✔Statement of
Ethical Professional Practice
A company's efforts to employ sustainable business practices w/ regards to its employees, society, and
the environment - ✔✔Corporate social responsibility
A method of allocating overhead based on each product's use of activities in making the product -
✔✔Activity-based costing
A performance-measurement approach that uses both financial and non-financial measures, tied to
company objectives, to evaluate a company's operations in an integrated fashion - ✔✔Balanced
scorecard
Admin. Expenses:
a. Product Costs
, b. Period Costs - ✔✔Period Costs
Advertising Expenses:
a. Product Costs
b. Period Costs - ✔✔Period Costs
(non-manufacturing costs)
All accounting info. must comply w/ GAAP (T/F) - ✔✔False
Financial Accounting must comply w/ GAAP, but for managerial accounting, standard is relevance to
decisions
All activities associated w/ providing a product or performing a service - ✔✔Value Chain
COG Manufactured = - ✔✔T.C. of W.I.P. -
Ending W.I.P. Inventory
CPU, Chips etc,:
a. Direct materials
b. Direct labor
c. Manufacturing overhead - ✔✔Direct materials
(raw material)
Depreciation of factory machinery:
a. Direct materials
b. Direct labor
c. Manufacturing overhead - ✔✔c. Manufacturing overhead
(depreciation)
Depreciation on factory equipment:
(T/F) Financial accounting reports are general-purpose and intended for external users. - ✔✔True
(T/F) Managerial accountants have a single role w/in an organization: collecting and reporting costs to
management - ✔✔False. Managerial accountants do determine product costs, but they are also
responsible for evaluating how well the company employs its resources.
(T/F) Managerial accounting reports are special-purpose and issued as frequently as needed. - ✔✔True
(T/F) Managerial accounting reports must now comply w/ GAAP - ✔✔False. Managerial reports are for
internal use and thus don't have to comply w/ GAAP
(T/F) Managers' activities and responsibilities can be classified into three broad functions: cost
accounting, budgeting, and internal control - ✔✔False. The 3 broad functions are: planning, controlling,
and directing.
A code of ethical standards developed by the Institute of Management Accountants - ✔✔Statement of
Ethical Professional Practice
A company's efforts to employ sustainable business practices w/ regards to its employees, society, and
the environment - ✔✔Corporate social responsibility
A method of allocating overhead based on each product's use of activities in making the product -
✔✔Activity-based costing
A performance-measurement approach that uses both financial and non-financial measures, tied to
company objectives, to evaluate a company's operations in an integrated fashion - ✔✔Balanced
scorecard
Admin. Expenses:
a. Product Costs
, b. Period Costs - ✔✔Period Costs
Advertising Expenses:
a. Product Costs
b. Period Costs - ✔✔Period Costs
(non-manufacturing costs)
All accounting info. must comply w/ GAAP (T/F) - ✔✔False
Financial Accounting must comply w/ GAAP, but for managerial accounting, standard is relevance to
decisions
All activities associated w/ providing a product or performing a service - ✔✔Value Chain
COG Manufactured = - ✔✔T.C. of W.I.P. -
Ending W.I.P. Inventory
CPU, Chips etc,:
a. Direct materials
b. Direct labor
c. Manufacturing overhead - ✔✔Direct materials
(raw material)
Depreciation of factory machinery:
a. Direct materials
b. Direct labor
c. Manufacturing overhead - ✔✔c. Manufacturing overhead
(depreciation)
Depreciation on factory equipment:
