Managerial Accounting Quiz

Managerial accounting is the process of providing economic and financial information for internal users to help them in decision making.

• True.

• False.

Managerial accounting information is generally prepared for..

• Investors.

• Shareholders.

• Managers.

• Regulatory agencies.

Managerial accounting focuses on all of the following purposes EXCEPT..

• Calculating product cost.

• Calculating annual profit.

• Determining cost behavior.

• Profit planning.

Manufacturing costs include..

• Direct materials and direct labour only.

• Direct materials and manufacturing overhead only.

• Direct labour and manufacturing overhead only.

• Direct materials, direct labour and manufacturing overhead.

Which of the following would NOT be classified as a product cost?

• Direct materials.

• Direct labor

• Sales Commissions.

• Indirect materials.

The costs that are expensed when incurred are called:

• Direct costs.

• Period costs.

• Product costs.

• Indirect costs.

A manufacturing process requires small amounts of glue. The glue used in the production process is classified as ..

• Period cost.

• Indirect material.

• Direct material.

• Miscellaneous expense.

When classified to traceability to cost object, the cost of direct materials is considered as...

• Discretionary cost.

• Direct cost.

• Product cost.

• Committed cost.

Prime costs are made up of..

• Raw materials + direct labour costs.

• Direct labour costs + indirect labour costs.

• Factory overheads + administrative costs.

• Selling and distribution costs + administrative costs.

The cost of goods manufactured is calculated as follows:

• Beginning WIP + direct materials used + direct labour + manufacturing overhead + ending WIP.

• Direct materials used + direct labour + manufacturing overhead - beginning WIP + ending WIP.

• Direct materials used + direct labour + manufacturing overhead + beginning WIP - ending WIP.

• Direct materials used + direct labour + manufacturing overhead - beginning WIP - ending WIP.