Questions:
1. In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT:
a. provide objective measures of past operations and subjective estimates about future decisions
b. be prepared in accordance with generally accepted accounting principles
c. be provided at any time management needs information
d. be prepared to report information for any unit of the business to support decision making
2. Which of the following is most associated with managerial accounting?
a. must follow GAAP
b. may rely on estimates and forecasts
c. is prepared for users outside the organization
d. always reports onthe entire entity
3. Conversion costs are
a. direct materials and direct labor
b. direct materials and factory overhead
c. factory overhead and direct labor
d. direct materials and indirect labor
4. Which of the following is an example of dirct labor cost for an airplane manufacturer?
a. cost of oil lubricants for factory machinery
b. cost of wages of assembly worker
c. salary of plant supervisor
d.cost of jet engines
5. prime costs are
a. direct materials and factory overhead
b. direct materials and direct labor
c. direct labor and factory overhead
d. period costs and factory overhead