1Chapter 16(1)ManagerialAccountingConcepts andPrinciplesOBJECTIVESObj 1Describe managerial accounting, and the role of managerial accounting in abusiness.Obj 2Define and illustrate the following costs:direct and indirect,direct materials, directlabor, factoryoverhead, andproduct and periodcosts.Obj 3Describe and illustrate the financial statementelements and cost relationships for amanufacturingbusiness.Obj 4Describe the various uses of managerial accounting information.QUESTION GRIDTrue / FalseNo. ObjectiveDifficulty No.ObjectiveDifficulty No.ObjectiveDifficulty116(1)-01 Easy1816(1)-02 Easy3516(1)-02 Easy216(1)-01 Easy1916(1)-02 Easy3616(1)-02 Difficult316(1)-01 Easy2016(1)-02 Easy3716(1)-02 Easy416(1)-01 Easy2116(1)-02 Easy3816(1)-02 Easy516(1)-01 Easy2216(1)-02 Easy3916(1)-02 Easy616(1)-01 Easy2316(1)-02 Difficult4016(1)-02 Easy716(1)-01 Easy2416(1)-02 Difficult4116(1)-02 Easy816(1)-01 Easy2516(1)-02 Easy4216(1)-02 Easy916(1)-01 Easy2616(1)-02 Difficult4316(1)-02 Easy1016(1)-01 Easy2716(1)-02 Difficult4416(1)-02 Easy1116(1)-01 Easy2816(1)-02 Difficult4516(1)-02 Easy1216(1)-01 Easy2916(1)-02 Easy4616(1)-03 Easy1316(1)-01 Easy3016(1)-02 Easy4716(1)-03 Moderate1416(1)-01 Easy3116(1)-02 Easy4816(1)-03 Moderate1516(1)-01 Easy3216(1)-02 Easy4916(1)-03 Moderate1616(1)-02 Easy3316(1)-02 Easy5016(1)-04 Easy1716(1)-02 Moderate3416(1)-02 Easy5116(1)-04 EasyMatchingNo. ObjectiveDifficulty No.ObjectiveDifficulty No.ObjectiveDifficulty116(1)-02 Easy716(1)-02 Easy1316(1)-02 Easy216(1)-02 Easy816(1)-02 Easy1416(1)-02 Easy316(1)-02 Easy916(1)-02 Easy1516(1)-02 Easy416(1)-02 Easy1016(1)-02 Easy1616(1)-02 Easy516(1)-02 Easy1116(1)-02 Easy616(1)-02 Easy1216(1)-02 Easy2

Chapter16(1)/ManagerialAccounting Conceptsand PrinciplesMultiple ChoiceNo. ObjectiveDifficulty No.ObjectiveDifficulty No.ObjectiveDifficulty116(1)-01 Easy1516(1)-01 Easy2916(1)-02 Difficult216(1)-01 Easy1616(1)-02 Moderate3016(1)-02 Difficult316(1)-01 Easy1716(1)-02 Moderate3116(1)-02 Difficult416(1)-01 Easy1816(1)-02 Easy3216(1)-02 Easy516(1)-01 Easy1916(1)-02 Easy3316(1)-02 Easy616(1)-01 Easy2016(1)-02 Difficult3416(1)-02 Moderate716(1)-01 Easy2116(1)-02 Easy3516(1)-02 Easy816(1)-01 Easy2216(1)-02 Easy3616(1)-03 Moderate916(1)-01 Easy2316(1)-02 Difficult3716(1)-03 Moderate1016(1)-01 Easy2416(1)-02 Easy3816(1)-03 Difficult1116(1)-01 Easy2516(1)-02 Difficult3916(1)-03 Easy1216(1)-01 Easy2616(1)-02 Easy4016(1)-04 Moderate1316(1)-01 Easy2716(1)-02 Easy1416(1)-01 Easy2816(1)-02 EasyExercise/OtherNo. ObjectiveDifficulty No.ObjectiveDifficulty No.ObjectiveDifficulty116(1)-01 Moderate316(1)-02 Easy516(1)-03 Difficult216(1)-02 Easy416(1)-02 EasyProblemNo. ObjectiveDifficulty No.ObjectiveDifficulty No.ObjectiveDifficulty116(1)-03 DifficultYou're reading a free preview. Pages 3 to 22 are not shown in this preview.

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Chapter 16(1)/ManagerialAccounting Conceptsand Principles

3Chapter 16(1) ManagerialAccountingConcepts andPrinciplesTRUE/FALSE1.Accounting is an information system that provides essential data about the economic activitiesof anentity to varioususers to aid themin making informedjudgments anddecisions.ANS:TDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost Management2.Managerial accounting reports are prepared according to generally accepted accounting principles.ANS:FDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost Management3.Managerial accounting information includesboth historical and estimated data.ANS:TDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost Management4.Since there are few rules to restrict how an organizationchooses to arrangeits own internal data fordecision making,managerialaccounting providesample opportunityfor creativity andchange.ANS:TDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost Management5.A diagram of the operating structure of an organization iscalled an organization chart.ANS:TDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost Management6.In most business organizations, the chief accountant is called the treasurer.ANS:FDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost Management7.In most business organizations, the chief accountant is called the controller.ANS:TDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost Management8.A staff department or unit is one thatprovides services,assistance, and advice to the departmentswith line orother staffresponsibilities.ANS:TDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost Management9.The vice presidents of production and sales and the controller hold line positions in most largeorganizations.ANS:FDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost Management10.A staff departmenthas no direct authority over a line department.ANS:TDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost ManagementYou're Reading a Free Preview

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Chapter16(1)/ManagerialAccounting Conceptsand Principles11.The controller's staffconsists ofmanagement accountants responsible forsystems and procedures,general accounting,budgets, taxes, andcost accounting.ANS:TDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost Management12.Managerialaccounting reportsmust be useful to theuser of the information.ANS:TDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost Management13.Planning is theprocess of directingoperations to achievethe organization sgoals and plans.ANS:FDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost Management14.Planning is the process of setting goals forthe use of anorganization sresources and ofdevelopingways to achievethese goals.ANS:TDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost Management15.Control is theprocess of directing operations to achieve the organization s goals andplans.ANS:TDIF: Easy OBJ: 16(1)-01NAT:AACSB Analytic |IMA-Cost Management16.Managerialaccounting providesuseful information tomanagers on productcosts.ANS:TDIF: Easy OBJ: 16(1)-02NAT:AACSB Analytic |IMA-Cost Management17.The payment ofdividends is an example of a cost.ANS:FDIF: ModerateOBJ: 16(1)-02NAT:AACSB Analytic |IMA-Cost Management18.A cost can be a payment of cash forthe purpose ofgenerating revenues.ANS:TDIF: Easy OBJ: 16(1)-02NAT:AACSB Analytic |IMA-Cost Management19.The cost of a manufactured productgenerally consists ofdirect materials cost,direct labor cost, andfactory overheadcost.ANS:TDIF: Easy OBJ: 16(1)-02NAT:AACSB Analytic |IMA-Cost Management20.The cost of materialsentering directly intothe manufacturingprocess is classifiedas factoryoverhead cost.ANS:FDIF: Easy OBJ: 16(1)-02NAT:AACSB Analytic |IMA-Cost Management21.The cost of wagespaid to employeesdirectly involved inconverting materialsto finished productisclassified as directlabor cost.ANS:TDIF: Easy OBJ: 16(1)-02NAT:AACSB Analytic |IMA-Cost ManagementYou're Reading a Free Preview

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