Managerial Accounting Concepts and Principles Quiz topic 8

What is the main objective of managerial accounting?

• To calculate taxes for the business

• To prepare financial statements for external stakeholders

• To provide relevant information that assists management in maximizing profit and minimizing losses

• To monitor employee performance

What are the two common groupings of costs for analysis and reporting?

• Product costs and Period costs

• Selling costs and Administrative costs

• Direct costs and Indirect costs

• Prime costs and Conversion costs

What is the difference between managerial accounting and financial accounting?

• Managerial accounting focuses on supporting companies through monitoring and reporting on financial performance and ongoing activities

• Financial accounting involves analysis and interpretation of accounting information to help managers make informed operational decisions

• Managerial accounting information is reported at fixed intervals in general-purpose financial statements

• Financial accounting information is designed to meet the specific needs of a company’s management

What are the three types of inventory reported on the statement of financial position for a manufacturing business?

• Materials inventory, Work in process inventory, Finished goods inventory

• Raw materials inventory, Direct labor inventory, Factory overhead inventory

• Direct materials inventory, Direct labor inventory, Indirect materials inventory

• Beginning inventory, Purchases, Ending inventory

What is the cost of goods manufactured for a manufacturing business?

• The total cost of making products that are available for sale during the period

• The total cost of merchandise available for sale during the period

• The cost of materials used in production

• The total manufacturing costs incurred

What is the purpose of performance reports in managerial accounting?

• To identify any large amounts of scrap materials or employee downtime

• To monitor employee performance

• To calculate taxes for the business

• To prepare financial statements for external stakeholders

What is the philosophy of continuous process improvement in managerial accounting?

• The philosophy of comparing actual and expected results

• The philosophy of continually improving employees, business processes, and products

• The philosophy of developing long-term actions to achieve the company’s objectives

• The philosophy of controlling by comparing actual and expected results

What are the two common groupings of costs for analysis and reporting?

• Product costs and Period costs

• Direct costs and Indirect costs

• Selling costs and Administrative costs

• Prime costs and Conversion costs

What is the cost of goods sold for a manufacturing business?

• The cost of finished goods available for sale

• The total manufacturing costs incurred

• The total cost of making products that are available for sale during the period

• The total cost of merchandise available for sale during the period

What are the three phases of the management process?

• Directing, Improving, Decision making

• Controlling, Planning, Decision making

• Improving, Decision making, Planning

• Planning, Directing, Controlling