Managerial Accounting Exam 1 TTU Celinda
Moore UPDATED ACTUAL Exam
Questions and CORRECT Answers
Overseeing the day-to-day operations of a company is an example of which of the following
management functions?
Planning
Controlling
Directing
Analyzing - CORRECT ANSWER - Directing
The primary goal of managerial accounting is to provide information to:
internal decision-makers
creditors
shareholders
both shareholders and creditors - CORRECT ANSWER - Internal Decision Makers
Which type of company has three categories of inventory?
A manufacturing company
A service company
A merchandising company
All of these companies - CORRECT ANSWER - A manufacturing company
Collectively, all costs such as distribution, marketing, and design are part of:
downstream activities.
manufacturing costs.
the value chain.
fixed costs. - CORRECT ANSWER - the value chain
, Whether a cost is defined as a direct cost, which is traceable, or an indirect cost, which must be
allocated is dependent upon which of the following?
The managerial cost allocation process
The total cost of each cost type.
The manufacturing process
The specific cost object - CORRECT ANSWER - the specific cost object
Which of the following is an example of manufacturing overhead expense in a factory?
Salaries of salespersons
Wages of administrators in the corporate office
Wages of factory maintenance personnel
Wages of machine operators - CORRECT ANSWER - Wages of factory maintenance
personnel
Aspen Apparel Company reports the following data for its first year of operation.Cost of goods
manufactured$155,500Work in process inventory, beginning0Work in process inventory,
ending90,600Direct materials used 85,100Direct Labor60,000Manufacturing overhead
101,000Finished goods inventory, beginning0Finished goods inventory, ending70,500What is
the cost of goods sold? - CORRECT ANSWER - 155,500 - 70,500 = 85,000
If a company overstates their ending finished goods inventory when calculating cost of goods
sold, what is the impact on the financial statements?
The cost of goods sold account will be too high on the income statement and the ending
inventory will be too low on the balance sheet.
Both the cost of goods sold on the income statement and the ending inventory balance will be too
high.
Moore UPDATED ACTUAL Exam
Questions and CORRECT Answers
Overseeing the day-to-day operations of a company is an example of which of the following
management functions?
Planning
Controlling
Directing
Analyzing - CORRECT ANSWER - Directing
The primary goal of managerial accounting is to provide information to:
internal decision-makers
creditors
shareholders
both shareholders and creditors - CORRECT ANSWER - Internal Decision Makers
Which type of company has three categories of inventory?
A manufacturing company
A service company
A merchandising company
All of these companies - CORRECT ANSWER - A manufacturing company
Collectively, all costs such as distribution, marketing, and design are part of:
downstream activities.
manufacturing costs.
the value chain.
fixed costs. - CORRECT ANSWER - the value chain
, Whether a cost is defined as a direct cost, which is traceable, or an indirect cost, which must be
allocated is dependent upon which of the following?
The managerial cost allocation process
The total cost of each cost type.
The manufacturing process
The specific cost object - CORRECT ANSWER - the specific cost object
Which of the following is an example of manufacturing overhead expense in a factory?
Salaries of salespersons
Wages of administrators in the corporate office
Wages of factory maintenance personnel
Wages of machine operators - CORRECT ANSWER - Wages of factory maintenance
personnel
Aspen Apparel Company reports the following data for its first year of operation.Cost of goods
manufactured$155,500Work in process inventory, beginning0Work in process inventory,
ending90,600Direct materials used 85,100Direct Labor60,000Manufacturing overhead
101,000Finished goods inventory, beginning0Finished goods inventory, ending70,500What is
the cost of goods sold? - CORRECT ANSWER - 155,500 - 70,500 = 85,000
If a company overstates their ending finished goods inventory when calculating cost of goods
sold, what is the impact on the financial statements?
The cost of goods sold account will be too high on the income statement and the ending
inventory will be too low on the balance sheet.
Both the cost of goods sold on the income statement and the ending inventory balance will be too
high.
