Top Mark Questions and Correct Verified Answers
ACC 312 - Managerial Accounting
Chapters 1-3-Questions and Correct
Verified Answers
The control function
✓ gathers feedback to ensure that plans are being followed
Performance reports
✓ Feedback that compares actual results with the budget, are an essential part of the
control function
Decision making
✓ Involves making a selection among competing alternatives
Core functions of management
✓ Planning, controlling, decision-making
Financial accounting
✓ concerned with reporting financial information to external parties, such as
stockholders, creditors, and regulators
Managerial accounting
✓ concerned with providing information to employees within an organization so that
they can formulate plans, control operations, and make decisions
Direct costs
Top Mark !!!
11
, Top Mark Questions and Correct Verified Answers
✓ can be easily and conveniently traced to a unit of product or other cost object (e.g.,
direct material and direct labor)
Indirect costs
✓ cannot be easily and conveniently traced to a unit of product or other cost object
(e.g., manufacturing overhead)
Common costs
✓ Are indirect and incurred to support a number of cost objects; cannot be traced to
any individual cost object
Direct materials
✓ raw materials that become an integral part of the product and that can be
conveniently traced directly to it (e.g., A seat installed in an aircraft)
Direct labor
✓ costs that can be easily traced to individual units of product (e.g., Wages paid to
automobile assembly workers)
Manufacturing overhead
✓ includes all manufacturing costs except direct material and direct labor; cannot be
readily traced to finished products (Incl. indirect materials and indirect labor)
indirect materials
✓ cannot be easily or conveniently traced to specific units of product
indirect labor
✓ cannot be easily or conveniently traced to specific units of product
Examples of manufacturing overhead
Top Mark !!!
22
ACC 312 - Managerial Accounting
Chapters 1-3-Questions and Correct
Verified Answers
The control function
✓ gathers feedback to ensure that plans are being followed
Performance reports
✓ Feedback that compares actual results with the budget, are an essential part of the
control function
Decision making
✓ Involves making a selection among competing alternatives
Core functions of management
✓ Planning, controlling, decision-making
Financial accounting
✓ concerned with reporting financial information to external parties, such as
stockholders, creditors, and regulators
Managerial accounting
✓ concerned with providing information to employees within an organization so that
they can formulate plans, control operations, and make decisions
Direct costs
Top Mark !!!
11
, Top Mark Questions and Correct Verified Answers
✓ can be easily and conveniently traced to a unit of product or other cost object (e.g.,
direct material and direct labor)
Indirect costs
✓ cannot be easily and conveniently traced to a unit of product or other cost object
(e.g., manufacturing overhead)
Common costs
✓ Are indirect and incurred to support a number of cost objects; cannot be traced to
any individual cost object
Direct materials
✓ raw materials that become an integral part of the product and that can be
conveniently traced directly to it (e.g., A seat installed in an aircraft)
Direct labor
✓ costs that can be easily traced to individual units of product (e.g., Wages paid to
automobile assembly workers)
Manufacturing overhead
✓ includes all manufacturing costs except direct material and direct labor; cannot be
readily traced to finished products (Incl. indirect materials and indirect labor)
indirect materials
✓ cannot be easily or conveniently traced to specific units of product
indirect labor
✓ cannot be easily or conveniently traced to specific units of product
Examples of manufacturing overhead
Top Mark !!!
22
