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
2. Managerial accounting does not encompass
calculating product cost
calculating earnings per share
determining cost behavior
profit planning
3. What activities and responsibilities are not associated with management's functions?
Planning
Accountability
Controlling
Directing
4. 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 Inventory 66,000
Raw Materials Inventory 66,000
Direct Materials 66,000
Indirect Materials 9,000
Work in Process Inventory 75,000
Manufacturing Overhead 75,000
Raw Materials Inventory 75,000
Work In Process Inventory 66,000
Manufacturing Overhead 9,000
Raw Materials Inventory 75,000
5. 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
6. 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
7. 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
8. In traditional costing systems, overhead is generally applied based on
direct labor
machine hours
direct material dollars
units of production
9. Fixed costs normally will not include
property taxes
direct labor
supervisory salaries
depreciation on buildings and equipment
10. Companies recognize fixed manufacturing overhead costs as period costs (expenses) when incurred when using
full costing
absorption costing
product costing
variable costing