Question

Control is the process of setting goals and determining ways to achieve them.

T/F

An important managerial accounting report is the budget, which predicts revenues and expenses

T/F

An employee overstates his reimbursable expenses in one period in order to receive needed additional cash. Since he intends to reduce his expenses the next period by the current overstatement, this act is not considered fraudulent.

T/F

Product costs are capitalized as inventory on the balance sheet and period costs are expensed on the income statement.

T/F

The sales commission incurred based on units of product sold during the month is an example of a product cost.

T/F

Raw materials inventory should not include indirect materials.

T/F

Answer 1

(1) -- Control is the process of setting goals and determining ways to achieve them.

Answer -

The given statement is False, because control is the process in which actual performance is compared to expected performance.

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(2) -- An important managerial accounting report is the budget, which predicts revenues and expenses.

Answer -

The given statement is True.

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(3) -- An employee overstates his reimbursable expenses in one period in order to receive needed additional cash. Since he intends to reduce his expenses the next period by the current overstatement, this act is not considered fraudulent.

Answer -

The given statement is False, because the act done by the employee is considered as fraudulent activity.

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(4) -- Product costs are capitalized as inventory on the balance sheet and period costs are expensed on the income statement.

Answer -

The given statement is True.

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(5) -- The sales commission incurred based on units of product sold during the month is an example of a product cost.

Answer -

The given statement is False, because the sales commission incurred based on units of product sold during the month is an example of a period cost.

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(6) -- Raw materials inventory should not include indirect materials.

Answer -

The given statement is False, because the raw materials inventory also include indirect materials.