Introduction to Management Accounting

The goal of managerial accounting is to provide the information that managers need for all of the following except:

• Planning

• Control

• Decision Making

• Review

Managerial accounting is designed for use by:

• Internal users

• Stockbrokers

• External users

• Clients

Which of the following is NOT a goal of managerial accounting

• Provide information needed for decision making

• Provide information needed for creditors

• Provide information needed for planning

• Provide information needed for control

Which are nonmanufacturing costs

• Selling cost

• Direct material

• Indirect material

• Factory rental

Cost of Goods Manufactured = Beginning Work In Progress + Current Manufacturing Cost - Ending Work In Progress

• True

• False

Which of the following is a manufacturing cost

• Advertising cost

• Product research cost

• Clerk’s salary

• Transportation cost

Product cost

• Are also called period costs

• Are considered an asset until the finished goods are sold

• Become an expense in the period the costs are incurred

• All of these answers choices are correct

Which of the following accounts doesnt appear on the balance sheet

• Raw material

• Finished goods

• Work in process

• Cost of good manufactured

Which are true about Managerial Accounting

• Is directed an internal users

• Must comply with GAAP standards

• Presents very detailed information

• Presents only monetary information

• Places emphasis on future

Both Financial Accounting and Managerial Accounting provide financial information for external users

• False

• True