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Managerial Accounting Exam 1

Terms in this set (17)

Which is not a characteristic of managerial accounting information?
Focuses on past results
Which of the following is a software system used to integrate company functions, departments, and data?
Enterprise Resource Planning
Which of the following characteristics of today's business environment is most closely associated with the philosophy of continuous improvement?
Total Quality Management
Which of the following accounts is used by a manufacturing company but not by a service company?
Cost of Goods Sold
Goods available for sale that are not part of Cost of Goods Sold are included in
Finished Goods Inventory ending balance.
Which of the following is a direct cost of manufacturing a sport boat?
Cost of a boat engine
Which of the following is not a product cost?
Advertising expense
A management accountant who communicates information fairly and objectively is practicing the ethical standard of
credibility
a job order costing system is used by companies that manufacture batches of unique products or provide specialized services
true
Which of the following is the correct order of the four steps of tracking product costs?
accumulate - assign - allocate - adjust
the information from a cost accounting system allows managers to make decisions about planning and directing, but not controlling
false
when raw materials are requisitioned for a job, the Raw Materials Inventory is debited
false
Manufacturing Overhead is a temporary account used to accumulate indirect production costs during the accounting period
true
The entry to record the purchase of raw materials on account would include a
debit to the Raw Materials Inventory account
The journal entry to issue $800 of direct materials and $60 of indirect materials to production involves debits to the _____.
WIP Inventory account for $800 and Manufacturing Overhead account for $60
The predetermined overhead allocation rate for a given production year is calculated___.
before the accounting period begins
The predetermined overhead allocation rate is the rate used to _____.
allocate estimated manufacturing overhead costs to jobs
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