The primary goal of managerial accounting is to provide information to

·        Question 1

1 out of 1 points

	The primary goal of managerial accounting is to provide information to
	Selected Answer: a.  management Answers: a.  management b.  creditors c.  investors d.  external auditors

·        Question 2

1 out of 1 points

	Prime costs are
	Selected Answer: a.  direct materials and direct labor Answers: a.  direct materials and direct labor b.  direct labor and factory overhead c.  period costs and factory overhead d.  direct materials and factory overhead

·        Question 3

1 out of 1 points

	What is the purpose of the statement of cost of goods manufactured?
	Selected Answer: c.  to determine the amounts transferred to finished goods Answers: a.  to determine the ending materials inventory b.  to determine the ending work in process inventory c.  to determine the amounts transferred to finished goods d.  all of these

·        Question 4

1 out of 1 points

	Which of the following are reported on the income statement as part of cost of goods?
	Selected Answer: a.  cost of goods manufactured Answers: a.  cost of goods manufactured b.  period costs c.  administrative expenses d.  operating expenses

·        Question 5

1 out of 1 points

	Cost of goods sold for a manufacturer equals cost of goods manufactured plus
	Selected Answer: a.  beginning finished goods inventory less ending finished goods inventory Answers: a.  beginning finished goods inventory less ending finished goods inventory b.  beginning work in process inventory less ending work in process inventory c.  ending work in process inventory less beginning work in process inventory d.  ending finished goods inventory less beginning finished goods inventory

·        Question 6

1 out of 1 points

	The controller's staff often consists of several management accountants. All of the following would most likely be on the controller's staff except
	Selected Answer: a.  investments and shareholder relations managers Answers: a.  investments and shareholder relations managers b.  cost accountants c.  general accountants d.  budgets and budget analysts

·        Question 7

1 out of 1 points

	A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and had $114,000 in factory overhead costs during the period.  If beginning and ending work in process inventories were $28,000 and $32,000, respectively, the cost of goods manufactured was
	Selected Answer: d.  $218,000 Answers: a.  $190,000 b.  $226,000 c.  $222,000 d.  $218,000 Response Feedback: Rationale: Cost of goods manufactured = Beginning work in process inventories + Direct materials + Direct labor cost + Factory overhead costs – Ending work in process inventories = $28,000 + $35,000 + $73,000 + $114,000 – $32,000 = $218,000

·        Question 8

1 out of 1 points

	At the beginning of the current year, the Grant Company’s work in process inventory account had a balance of $30,000.  During the year, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred.  Factory overhead for the year amounted to $90,000. Cost of goods manufactured is $230,000.  The balance in work in process inventory on December 31 is
	Selected Answer: d.  $24,000 Answers: a.  $66,000 b.  $36,000 c.  $44,000 d.  $24,000 Response Feedback: Rationale: Work in process inventory on December 31 = Beginning work in process inventory + Direct materials used + Direct labor incurred + Factory overhead – Cost of goods manufactured = $30,000 + $68,000 + $66,000 + $90,000 – $230,000 = $24,000

·        Question 9

1 out of 1 points

	On the income statement of a manufacturing company, what replaces purchases in the cost of goods sold section of a retail company?
	Selected Answer: d.  cost of goods manufactured Answers: a.  work in process b.  cost of merchandise available c.  finished goods d.  cost of goods manufactured

·        Question 10

1 out of 1 points

	Which of the following is most associated with managerial accounting?
	Selected Answer: d.  may rely on estimates and forecasts Answers: a.  is prepared for users outside the organization b.  must follow GAAP c.  always reports on the entire entity d.  may rely on estimates and forecasts