Managerial Accounting

Managerial Accounting Midterm Exam

Question 1

1.    Managerial accounting applies to each of the following types of businesses except

service firms.

merchandising firms.

manufacturing firms.

managerial accounting applies to all types of firms.

Question 2

1.    Managerial accounting does not encompass

calculating product cost.

calculating earnings per share.

determining cost behavior.

profit planning.

Question 3

1.    What activities and responsibilities are not associated with management's functions?

Planning

Accountability

Controlling

Directing

Question 4

1.    A materials requisition slip showed that direct materials requested were $66,000 and indirect materials requested were $9,000. The entry to record the transfer of materials from the storeroom is

Work In Process Inventory66,000

Raw Materials Inventory66,000

Direct Materials66,000

Indirect Materials9,000

Work in Process Inventory75,000

Manufacturing Overhead75,000

Raw Materials Inventory75,000

Work In Process Inventory66,000

Manufacturing Overhead 9,000

Raw Materials Inventory 75,000

Question 5

1.    Which one of the following is a source document that impacts the job cost sheet?

Raw materials receiving slips.

Materials purchase orders.

Labor time tickets.

Finished goods shipping documents.

Question 6

1.    Equivalent units are calculated by

multiplying the percentage of work done by the equivalent units of output.

dividing physical units by the percentage of work done.

multiplying the percentage of work done by the physical units.

dividing equivalent units by the percentage of work done.

Question 7

1.    In a process cost system, product costs are summarized:

on job cost sheets.

on production cost reports.

after each unit is produced.

when the products are sold.

Question 8

1.    In traditional costing systems, overhead is generally applied based on

direct labor.

machine hours.

direct material dollars.

units of production.

Question 9

1.    Fixed costs normally will not include

property taxes.

direct labor.

supervisory salaries.

depreciation on buildings and equipment.

Question 10

1.    Companies recognize fixed manufacturing overhead costs as period costs (expenses) when incurred when using

full costing.

absorption costing.

product costing.

variable costing.