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In: Accounting

1. Which of the following is NOT true about Managerial Accounting Reports? a. They are prepared...

1. Which of the following is NOT true about Managerial Accounting Reports?

a. They are prepared periodically, or at any time management needs information.

b. They can be prepared for the whole business entity, or for just a segment of the business entity (i.e., division, product, project, or territory).

c. They are submitted to the Securities & Exchange Commission according to a required schedule.

d. They are not prepared according to Generally Accepted Accounting Principles.

2. Which of the following is NOT a type of manufacturing-related inventory found on the company's Balance Sheet?

a. Finished Goods

b. Work-in-Process

c. Production Supplies

d. Raw Materials

3. Which of the following is NOT a Period Cost?

a. Advertising Expense

b. Depreciation Expense on Office Equipment

c. Office Supplies Expense

d. Salesmen's Commission Expense

e. Depreciation Expense on Factory Equipment

4. Identify the following costs as Prime, Conversion, or Both:

Wood to make a dining room table

Wages of the assembly line workers

Depreciation Expense on the factory equipment

5. Place the following phases of the Managerial Process in their correct order:

Planning, Decision making, Controlling, Improving, Directing

6. Compete the following statements with the available terms: Improving, Planning, Work in Process, Strategic, Product Costs, Operational, Cost of Goods Sold, Directing, or Period Cost.

The Income Statement of a manufacturer would include a line item for ______________.

Short-term plans are called ________ Plans.

Long-Term plans are called __________ Plans.

Feedback is often used to _______ operations.

__________ is used by management to develop the company's goals.

______________ consist of the three elements of manufacturing cost: direct materials, direct labor, and factory overhead.

____________ are generally classified into two categories: selling and administrative.

The Balance Sheet of a manufacturer would include a line item for _____________.

___________ is the process by which managers, given their assigned level of responsibilities, run the day-to-day operations of the company.

Solutions

Expert Solution

Answer 1:

Correct answer is:

c. They are submitted to the Securities & Exchange Commission according to a required schedule.

Explanation:

Managerial Accounting Reports are not submitted to the Securities & Exchange Commission according to a required schedule.

As such option c is correct.

Options a and b are incorrect since managerial accounting reports are prepared periodically, or at any time management needs information and they can be prepared for the whole business entity, or for just a segment of the business entity (i.e., division, product, project, or territory).

Option d is incorrect since Managerial Accounting Reports are not prepared according to Generally Accepted Accounting Principles.

Answer 2:

Correct answer is:

c. Production Supplies

Explanation:

Finished Goods, Work-in-Process and Raw Materials are manufacturing-related inventory found on the company's Balance Sheet but production supplies is not.

As such option c is correct and other options a, b and d are incorrect.

Answer 3:

Correct answer is:

e. Depreciation Expense on Factory Equipment

Explanation:

In absorption costing "Depreciation Expense on Factory Equipment" is a product cost and not period cost.

As such option e is correct and other options a, b, c and d are incorrect.

Answer 4:

Wood to make a dining room table: Prime cost

Wages of the assembly line workers: Both

Depreciation Expense on the factory equipment: Conversion cost.

Explanation:

Prime costs are direct costs like direct material and direct labor

Conversions costs are costs incurred to convert raw material into finished goods. As such wages are both prime cost as well as conversion cost.

Answer 5:

Correct order of managerial processes will be:

Decision making, Planning, Directing, Controlling, Improving

Answer 6:

The Income Statement of a manufacturer would include a line item for Cost of Goods Sold.

Short-term plans are called Operational Plans.

Long-Term plans are called Strategic Plans.

Feedback is often used to Improving operations.

Planning is used by management to develop the company's goals.

Product Costs consist of the three elements of manufacturing cost: direct materials, direct labor, and factory overhead.

Period Costs are generally classified into two categories: selling and administrative.

The Balance Sheet of a manufacturer would include a line item for Work in Process.

Directing is the process by which managers, given their assigned level of responsibilities, run the day-to-day operations of the company.

ekkarill92 answered 4 months ago
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