Ch 14 Exam review

Who are the primary users of managerial accounting?

• Internal users

• External users

• Everyone

• Students

What is the purpose of financial accounting reports?

• General purpose

• Special purpose

• There is no purpose

• To help managers make decisions

What are the three key functions of managerial accounting?

• Planning, recording, communicating

• Planning, managing, controlling

• Identifying, recording, communicating

• Planning, directing, controlling

What is the planning function for?

• To produce smooth-running operation

• To keep and maintain activities on track

• To add value to the business

• To decide changes needed to get back on track

What costs are included in manufacturing (product) costs?

• Manufacturing overhead, indirect materials, indirect labor

• Direct materials and direct labor

• Direct materials, direct labor, manufacturing overhead

• Indirect materials and indirect labor

Which of the following costs would not be considered a direct cost at Toyota?

• Metal for the exterior

• Depreciation of the factory building

• Rubber for the tires

• Factory worker assembling the cars

Which of the following is not included in manufacturing (product) costs?

• Direct materials

• Direct labor

• Manufacturing overhead

• Selling and administrative expenses

Which of the following costs would be a period cost?

• Raw materials

• Factory worker salary

• Sales commissions

• Factory maintenance employee salary

True or False: Product costs are also called manufacturing costs.

• True

• False

What are the three categories of inventory on a manufacturer’s balance sheet?

• Period, product, manufacturing overhead

• Work-in-process, direct materials, direct labor

• Raw materials, work-in-process, finished goods

• Manufacturing overhead, raw materials, finished goods