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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Document preview page 1

Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 1

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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank

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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 1 preview image1.2.3.TB 01-01 Managers everywhere carry out three major activiti...Managers everywhere carry out three major activities: planning, implementation, and control.→TrueFalseTrue / FalseTB 01-01 Managers everywherecarry out three major activiti...TB 01-02 The theory of constraint (TOC) framework focuses o...The theory of constraint (TOC) framework focuses on effectively managing constraints as the key to success.→TrueFalseTrue / FalseTB 01-02 The theory of constraint(TOC) framework focuses o...TB 01-03 Managerial Accounting reports are prepared for ext...Managerial Accounting reports are prepared for external users while Financial Accounting reports are prepared forinternal users.True→FalseTrue / FalseTB 01-03 Managerial Accountingreports are prepared for ext...Assignment Print View1 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 2 preview image
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 3 preview image4.5.6.TB 01-04 Merchandising firms largely refer to retail and wh...Merchandising firms largely refer to retail and wholesale outlets that buy goods from suppliers and resell them tocustomers.→TrueFalseTrue / FalseTB 01-04 Merchandising firmslargely refer to retail and wh...TB 01-05 Merchandising and manufacturing firms generate rev...Merchandising and manufacturing firms generate revenue by selling products.→TrueFalseTrue / FalseTB 01-05 Merchandising andmanufacturing firms generaterev...TB 01-06 Service firms do not sell any products but generat...Service firms do not sell any products but generate revenues by offering one or more types of services.→TrueFalseTrue / FalseTB 01-06 Service firms do not sellany products but generat...Assignment Print View2 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 4 preview image7.8.9.TB 01-07 Managers assign tasks to employees, arbitrate disp...Managers assign tasks to employees, arbitrate disputes, answer questions, solve on the spot problems, and makemany decisions that affect customers and employees, which in turn, will likely influence future financial andnonfinancial performance.→TrueFalseTrue / FalseTB 01-07 Managers assign tasksto employees, arbitrate disp...TB 01-08 Planning involves selecting a course of action and...Planning involves selecting a course of action and specifying how the action will be implemented.→TrueFalseTrue / FalseTB 01-08 Planning involvesselecting a course of action and...TB 01-09 Control involves the process of instituting proced...Control involves the process of instituting procedures and then obtaining feedback to ensure that all parts of theorganization are functioning effectively and moving toward overall company goals.→TrueFalseTrue / FalseTB 01-09 Control involves theprocess of instituting proced...Assignment Print View3 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 5 preview image10.11.12.TB 01-10 Strategy pertains to the general direction in whic...Strategy pertains to the general direction in which an organization plans to move to achieve its goals andobjectives.→TrueFalseTrue / FalseTB 01-10 Strategy pertains to thegeneral direction in whic...TB 01-11 Management accountants are not required to follow ...Management accountants are not required to follow the generally accepted accounting principles that are used forexternal financial reporting when preparing reports for internal users.→TrueFalseTrue / FalseTB 01-11 Managementaccountants are not required tofollow ...TB 01-12 Management accounting information is primarily con...Management accounting information is primarily concerned with reports on the organization as a whole whilefinancial accounting focuses more on the individual segments of the organization.True→FalseTrue / FalseTB 01-12 Management accountinginformation is primarily con...Assignment Print View4 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 6 preview image13.14.15.TB 01-13 The Code of Ethics for Professional Accountants es...The Code of Ethics for Professional Accountants established by the International Federation of Accountantsgoverns only the activities of accountants in public practice.True→FalseTrue / FalseTB 01-13 The Code of Ethics forProfessional Accountants es...TB 01-14 Performance reports provide formal feedback to ass...Performance reports provide formal feedback to assist in determining whether operations and performance are ontrack..→TrueFalseTrue / FalseTB 01-14 Performance reportsprovide formal feedback to ass...TB 01-15 Planning includes identifying alternatives and the...Planning includes identifying alternatives and then selecting the one that does the best job of furthering theorganization's objectives.→TrueFalseTrue / FalseTB 01-15 Planning includesidentifying alternatives and the...Assignment Print View5 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 7 preview image16.17.18.TB 01-16 Reduction in tariffs, quotas, and other barriers t...Reduction in tariffs, quotas, and other barriers to free trade; improvements in global transportation system; andincreasing sophistication in international trade markets, are several factors that have led to an increase inworldwide competition in many industries.→TrueFalseTrue / FalseTB 01-16 Reduction in tariffs,quotas, and other barriers t...TB 01-17 One major implication of globalization for many or...One major implication of globalization for many organizations is that they must find new ways of conductingbusiness.→TrueFalseTrue / FalseTB 01-17 One major implication ofglobalization for many or...TB 01-18 The main idea underlying the lean business model i...The main idea underlying the lean business model is the elimination of waste.→TrueFalseTrue / FalseTB 01-18 The main ideaunderlying the lean businessmodel i...Assignment Print View6 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 8 preview image19.20.21.TB 01-19 Companies that use the just-in-time (JIT) approach...Companies that use the just-in-time (JIT) approach purchase materials and produce units only as needed to meetactual customer demand.→TrueFalseTrue / FalseTB 01-19 Companies that use thejust-in-time (JIT) approach...TB 01-20 Among other things, companies using the just-in-ti...Among other things, companies using the just-in-time (JIT) approach, produce only in response to a customerorder meaning that workers will not be idle whenever demand falls below the company's production capacity.True→FalseTrue / FalseTB 01-20 Among other things,companies using the just-in-ti...TB 01-21 Defects can be tolerated in a just-in-time (JIT) s...Defects can be tolerated in a just-in-time (JIT) system.True→FalseTrue / FalseTB 01-21 Defects can be toleratedin a just-in-time (JIT) s...Assignment Print View7 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 9 preview image22.23.24.TB 01-22 There are four major characteristics of total qual...There are four major characteristics of total quality management.True→FalseTrue / FalseTB 01-22 There are four majorcharacteristics of total qual...TB 01-23 Many Canadian organizations have successfully impl...Many Canadian organizations have successfully implemented quality management principles and have receivedrecognition from Excellence Canada (formerly the National Quality Institute) whose mission is to inspire excellencein Canada.→TrueFalseTrue / FalseTB 01-23 Many Canadianorganizations have successfullyimpl...TB 01-24 Process reengineering diagrams a business process ...Process reengineering diagrams a business process in detail, questions it, and then completely redesigns it toeliminate unnecessary steps, reduce opportunities for errors, and reduce costs.→TrueFalseTrue / FalseTB 01-24 Process reengineeringdiagrams a business process ...Assignment Print View8 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 10 preview image25.26.27.TB 01-25 Process reengineering is usually strongly accepted...Process reengineering is usually strongly accepted by all employees within an organization.True→FalseTrue / FalseTB 01-25 Process reengineeringis usually strongly accepted...TB 01-26 Effective corporate governance enhances stakeholde...Effective corporate governance enhances stakeholders' confidence that an organization is being managed in theirbest interests rather than solely in the interests of top management and certain key individuals.→TrueFalseTrue / FalseTB 01-26 Effective corporategovernance enhancesstakeholde...TB 01-27 Codes of ethics almost always provide employees wi...Codes of ethics almost always provide employees with very specific and detailed instructions about what they cando and not do.True→FalseTrue / FalseTB 01-27 Codes of ethics almostalways provide employees wi...Assignment Print View9 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 11 preview image28.29.30.TB 01-28 The PDCA Cycle is a system of continuous improveme...The PDCA Cycle is a system of continuous improvement in which a planning committee selects from a list ofalternatives for improvement and moves to fully implement immediately the chosen improvement.True→FalseTrue / FalseTB 01-28 The PDCA Cycle is asystem of continuousimproveme...TB 01-29 Financial accounting is primarily concerned with:Financial accounting is primarily concerned with:→reporting to external investors and creditors.long term decision making.feasibility analysis.reporting exclusively to internal users.Multiple ChoiceTB 01-29 Financial accounting isprimarily concerned with:TB 01-30 Managerial accounting emphasizes the future in add...Managerial accounting emphasizes the future in addition to historical reports, whereas financial accounting:emphasizes a future perspective.emphasizes individual organizational units.emphasizes timeliness.→emphasizes a historical perspective.Multiple ChoiceTB 01-30 Managerial accountingemphasizes the future in add...Assignment Print View10 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 12 preview image31.32.33.TB 01-31 In order to eliminate waste, companies must adopt ...In order to eliminate waste, companies must adopt and implement one or more management practices that focuson different aspects of the lean business model such as:→Just-in-Time.maintaining inventories large enough to shield against all unanticipated disruptions.Activity-Based Costing.multi-dimensional performance measurement systems.Multiple ChoiceTB 01-31 In order to eliminatewaste, companies must adopt ...TB 01-32 Companies using the just-in-time (JIT) approach ho...Companies using the just-in-time (JIT) approach hope to achieve:the hiring of specialized workers to increase production.gains in production flexibility.reduction of costs associated with setup by producing in large batches.→reduced defect rates, resulting in less waste and greater customer satisfaction.Multiple ChoiceTB 01-32 Companies using thejust-in-time (JIT) approach ho...TB 01-33 Which of the following is NOT a benefit of a just-...Which of the following is NOT a benefit of a just-in-time (JIT) system?Funds that have been tied up in inventories can be used elsewhere.Areas previously used to store inventories are made available for other more productive uses.The time required to fill an order is reduced, resulting in quicker response to customers andconsequentially greater potential sales.→Production workers are always busy.Multiple ChoiceTB 01-33 Which of the following isNOT a benefit of a just-...Assignment Print View11 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 13 preview image34.35.36.TB 01-34 In using total quality management (TQM), the key f...In using total quality management (TQM), the key focus is,employee focus.management focus.→customer focus.executive focus.Multiple ChoiceTB 01-34 In using total qualitymanagement (TQM), the key f...TB 01-35 What is the professional designation for the major...What is the professional designation for the majority of professional accountants in Canada?Chartered Certified AccountantsChartered Management Accountants→Chartered Professional AccountantsCertified Public AccountantsMultiple ChoiceTB 01-35 What is the professionaldesignation for the major...TB 01-36 Which of the following is NOT included in Codes of...Which of the following is NOT included in Codes of Ethics for professional accountants?Professional competenceObjectivity→CompensationConfidentialityMultiple ChoiceTB 01-36 Which of the following isNOT included in Codes of...Assignment Print View12 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 14 preview image37.38.39.TB 01-37 Corporate governanceCorporate governanceis a department within Canada Revenue with a mandate to ensure all corporations file annual taxreturns.→if effective, should enhance stakeholders' confidence that the organization is being managed intheir best interests.ensures the personal interests of top management are fully achieved.is only important to non-publicly traded companies.Multiple ChoiceTB 01-37 Corporate governanceTB 01-38 Benchmarking begins with:Benchmarking begins with:completely redesigning a business process to improve it.determining the constraints within a given manufacturing process.→studying organizations that are the best at a particular task.a determination to only build products to meet specific customer orders.Multiple ChoiceTB 01-38 Benchmarking beginswith:TB 01-39 Activities that do not add value to a product or s...Activities that do not add value to a product or service that customers are willing to pay for are considered to be:normal business activities.→non-value-added activities.part of the overhead costs of a business.a constraint.Multiple ChoiceTB 01-39 Activities that do not addvalue to a product or s...Assignment Print View13 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 15 preview image40.41.TB 01-40 A manufacturing business which operates five days ...A manufacturing business which operates five days per week has four different departments involved in producingeach unit of its product. Maximum daily production capacities of each are: Department A - 100 units; Department B- 135 units; Department C - 95 units, and Department D - 110 units. Maximum weekly output of completed units is?440→475550675Multiple ChoiceTB 01-40 A manufacturingbusiness which operates five days...TB 01-41 The management cycle proceeds in what order?The management cycle proceeds in what order?Control, implementation, planning→Planning, implementation, controlImplementation, planning, controlImplementation, control, planningMultiple ChoiceTB 01-41 The management cycleproceeds in what order?Assignment Print View14 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 16 preview image42.43.TB 01-42 A manufacturing business has four different depart...A manufacturing business has four different departments involved in producing each unit of its product. Maximumdaily production capacities of each are: Department A - 100 units; Department B - 135 units; Department C - 95units, and Department D - 110 units. Which department would be considered first in looking at ways to improveoutput capacity?AB→CDMultiple ChoiceTB 01-42 A manufacturingbusiness has four differentdepart...TB 01-43 A manufacturing business has four different depart...A manufacturing business has four different departments involved in producing each unit of its product. Maximumdaily production capacities of each are: Department A - 100 units; Department B - 135 units; Department C - 95units, and Department D - 110 units. A consultant has suggested some alternatives to increase output capacitiesas follows:Alternative A - increase Department B's output to 200 units per day.Alternative B - increase Department C's output to 120 units per day.Alternative C - increase both Department A's and Department C's outputs to 110 units per day.Alternative D - increase Department D's output to 300 units per day.Assuming the costs of each alternative are similar and that only one can be chosen, which alternative would yieldthe best results for the business?AB→CDMultiple ChoiceTB 01-43 A manufacturingbusiness has four differentdepart...Assignment Print View15 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 17 preview image44.45.TB 01-44 Which of the following statements is not true?Which of the following statements is not true?→Financial accounting and managerial accounting are independent of each other.Financial accounting, due to the requirements of regulation, is mandatory for businesses.Managerial accounting has a strong orientation towards the future.Financial accounting presents a historical perspective of business activities.Multiple ChoiceTB 01-44 Which of the followingstatements is not true?TB 01-45 List four major potential benefits of successfully...List four major potential benefits of successfully implementing a just-in-time (JIT) system in a manufacturingcompany.1. substantial reduction in inventory ordering and warehousing costs.2. reduction in waste due to inventory obsolescence and pilferage.3. a commitment to zero defects.4. a reduction in time to complete a product.EssayTB 01-45 List four major potentialbenefits of successfully...Assignment Print View16 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 18 preview image46.47.TB 01-46 List seven key differences between Managerial Acco...List seven key differences between Managerial Accounting and Financial Accounting.1, managerial accounting reports are prepared primarily for managers inside the organization, whereas financialaccounting reports are typically prepared for the use of external parties, such as shareholders, creditors andregulatory bodies.2. managerial accounting is not a mandatory requirement for businesses while financial accounting is.3. managerial accounting is not regulated by prescribed standards or formats while financial accounting mustfollow prescribed accounting standards.4. managerial accounting usually focuses on the parts or segments of an organization while financial accountingis primarily concerned with reporting the activities of the organization as a whole.5. managerial accounting usually has a strong future orientation while financial accounting has a historicalperspective.6. managerial accounting emphasizes obtaining data relevant to decision making while financial accountingemphasizes the verifiability of data.7. managerial accounting requires information to be available on a timely basis while financial accounting, withits historical perspective, focuses on precision.EssayTB 01-46 List seven keydifferences between ManagerialAcco...TB 01-47 Describe factors that have led to an increase in w...Describe factors that have led to an increase in worldwide competiveness as part of the globalization on business.Reduction of tariffs, quotas, and other barriers to free trade; improvements in global transportation systems; andincreasing sophistication in international trade markets. These factors help to reduce the costs of conductinginternational trade and make it possible for foreign companies to compete on a more equal footing withdomestic firms.EssayTB 01-47 Describe factors thathave led to an increase in w...Assignment Print View17 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 19 preview image48.49.TB 01-48 Explain the lean business model and its correspond...Explain the lean business model and its corresponding management practices and potential benefits.Many businesses in order to remain competitive in the global market place, have adopted the lean businessmodel which focuses on the elimination of waste. This consists of implementing management practices, such asjust-in-time and total quality management, which if properly implemented can enhance quality, increaseefficiencies, eliminate delays and reduce costs.EssayTB 01-48 Explain the leanbusiness model and itscorrespond...TB 01-49 Explain the importance of ethical responsibility a...Explain the importance of ethical responsibility and explain the need for ethical codes of conduct.Unethical behaviour is often the result of top executives focusing exclusively on short-term profits at any cost.As businesses interact more and more, being ethically responsible is extremely important. Many organizationshave implemented ethical codes of conduct to guide behaviour.EssayTB 01-49 Explain the importanceof ethical responsibility a...Assignment Print View18 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 20 preview image50.51.52.TB 01-50 List four management practices (programs of contin...List four management practices (programs of continuous improvement) that may be used to achieve the objectivesof the lean business model.1. just-in time.2. total quality management.3. process reengineering.4. theory of constraints.EssayTB 01-50 List four managementpractices (programs of contin...TB 02-01 TF All costs incurred in a merchandising firm a...All costs incurred in a merchandising firm are considered to be period costs.True→FalseTrue / FalseTB 02-01 TF All costs incurred ina merchandising firm a...TB 02-02 TF Depreciation is always considered a product ...Depreciation is always considered a product cost for external financial reporting purposes in a manufacturing firm.True→FalseTrue / FalseTB 02-02 TF Depreciation isalways considered a product ...Assignment Print View19 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 21 preview image53.54.55.TB 02-03 TF Advertising costs are considered product cos...Advertising costs are considered product costs for external financial reports since they are incurred in order topromote specific products.True→FalseTrue / FalseTB 02-03 TF Advertising costs areconsidered product cos...TB 02-04 TF Property taxes and insurance premiums paid o...Property taxes and insurance premiums paid on a factory building are examples of manufacturing overhead.→TrueFalseTrue / FalseTB 02-04 TF Property taxes andinsurance premiums paid o...TB 02-05 TF Manufacturing overhead combined with direct ...Manufacturing overhead combined with direct materials is known as conversion cost.True→FalseTrue / FalseTB 02-05 TF Manufacturingoverhead combined with direct ...Assignment Print View20 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 22 preview image56.57.58.TB 02-06 TF If the ending inventory of finished goods is...If the ending inventory of finished goods is understated, net income will be overstated.True→FalseTrue / FalseTB 02-06 TF If the endinginventory of finished goods is...TB 02-07 TF In a manufacturing company, goods available ...In a manufacturing company, goods available for sale equals the sum of the cost of goods manufactured and thebeginning finished goods inventory.→TrueFalseTrue / FalseTB 02-07 TF In a manufacturingcompany, goods available ...TB 02-08 TF Variable costs are costs whose per unit cost...Variable costs are costs whose per unit costs vary as the activity level rises and falls.True→FalseTrue / FalseTB 02-08 TF Variable costs arecosts whose per unit cost...Assignment Print View21 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 23 preview image59.60.61.TB 02-09 TF On a per unit basis, a fixed cost varies inv...On a per unit basis, a fixed cost varies inversely with the level of activity.→TrueFalseTrue / FalseTB 02-09 TF On a per unit basis,a fixed cost varies inv...TB 02-10 TF All the following would typically be conside...All the following would typically be considered indirect costs of manufacturing a particular Boeing 747 to bedelivered to Singapore Airlines: electricity to run production equipment, the factory manager's salary, and the costof the General Electric jet engines installed on the aircraft.True→FalseTrue / FalseTB 02-10 TF All the followingwould typically be conside...TB 02-11 TF All the following costs should be considered...All the following costs should be considered direct costs of providing delivery room services to a particular motherand her baby: the costs of drugs administered in the operating room, the attending physician's fees, and a portionof the liability insurance carried by the hospital to cover the delivery room.True→FalseTrue / FalseTB 02-11 TF All the followingcosts should be considered...Assignment Print View22 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 24 preview image62.63.64.TB 02-12 TF The following costs should be considered by ...The following costs should be considered by a law firm to be indirect costs of defending a particular client in court:rent on the law firm's offices, the law firm's receptionist's wages, the costs of heating the law firm's offices, and thedepreciation on the personal computer in the office of the attorney who has been assigned the client.→TrueFalseTrue / FalseTB 02-12 TF The following costsshould be considered by ...TB 02-13 TF A cost that differs from one month to anothe...A cost that differs from one month to another is known as a differential cost.True→FalseTrue / FalseTB 02-13 TF A cost that differsfrom one month to anothe...TB 02-14 TF Opportunity costs are always recorded as exp...Opportunity costs are always recorded as expenses in the accounts of an organization.True→FalseTrue / FalseTB 02-14 TF Opportunity costsare always recorded as exp...Assignment Print View23 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 25 preview image65.66.67.TB 02-15 Sunk costs are irrelevant in making decisions.Sunk costs are irrelevant in making decisions.→TrueFalseTrue / FalseTB 02-15 Sunk costs areirrelevant in making decisions.TB 02-16 The inventory accounts reported on the balance she...The inventory accounts reported on the balance sheet of a manufacturing company will differ from those of amerchandising company.→TrueFalseTrue / FalseTB 02-16 The inventory accountsreported on the balance she...TB 02-17 The corporate controller's salary would be conside...The corporate controller's salary would be considered a(n):manufacturing cost.product cost.→administrative cost.selling expense.Multiple ChoiceTB 02-17 The corporatecontroller's salary would beconside...Assignment Print View24 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 26 preview image68.69.TB 02-18 The cost of fire insurance for a manufacturing pla...The cost of fire insurance for a manufacturing plant is generally considered to be a:→product cost.period cost.variable cost.all of the answers are correct.Multiple ChoiceTB 02-18 The cost of fireinsurance for a manufacturingpla...TB 02-19 The cost of rent for a manufacturing plant is gene...The cost of rent for a manufacturing plant is generally considered to be a:→choice a.choice b.choice c.choice d.Multiple ChoiceTB 02-19 The cost of rent for amanufacturing plant is gene...Assignment Print View25 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 27 preview image70.71.72.TB 02-20 Each of the following would be a period cost excep...Each of the following would be a period cost except:the salary of the company president's secretary.the cost of a general accounting office.→depreciation of a machine used in manufacturing.sales commissions.Multiple ChoiceTB 02-20 Each of the followingwould be a period cost excep...TB 02-21 For a manufacturing company, which of the followin...For a manufacturing company, which of the following is an example of a period rather than a product cost?Depreciation of factory equipment.→Wages of salespersons.Wages of machine operators.Insurance on factory equipment.Multiple ChoiceTB 02-21 For a manufacturingcompany, which of the followin...TB 02-22 Which of the following would be considered a produ...Which of the following would be considered a product cost for external financial reporting purposes?Cost of a warehouse used to store finished goods.Cost of guided public tours through the company's facilities.Cost of travel necessary to sell the manufactured product.→Cost of sand spread on the factory floor to absorb oil from manufacturing machines.Multiple ChoiceTB 02-22 Which of the followingwould be considered a produ...Assignment Print View26 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 28 preview image73.74.75.TB 02-23 Which of the following would NOT be treated as a p...Which of the following would NOT be treated as a product cost for external financial reporting purposes?Depreciation on a factory building.Salaries of factory workers.Indirect labour in the factory.→Advertising expenses.Multiple ChoiceTB 02-23 Which of the followingwould NOT be treated as a p...TB 02-24 Transportation costs incurred by a manufacturing c...Transportation costs incurred by a manufacturing company to ship its product to its customers would be classifiedas which of the following?Product cost.Manufacturing overhead.→Period cost.Administrative cost.Multiple ChoiceTB 02-24 Transportation costsincurred by a manufacturing c...TB 02-25 The salary of the president of a manufacturing com...The salary of the president of a manufacturing company would be classified as which of the following?Product cost.→Period cost.Manufacturing overhead.Direct labour.Multiple ChoiceTB 02-25 The salary of thepresident of a manufacturingcom...Assignment Print View27 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 29 preview image76.77.TB 02-26 Micro Computer Company has set up a toll-free tele...Micro Computer Company has set up a toll-free telephone line for customer inquiries regarding computer hardwareproduced by the company. The cost of this toll-free line would be classified as which of the following?Product cost.Manufacturing overhead.Direct labour.→Period cost.Multiple ChoiceTB 02-26 Micro ComputerCompany has set up a toll-freetele...TB 02-27 The wages of factory maintenance personnel would u...The wages of factory maintenance personnel would usually be considered to be:choice a.choice b.→choice c.choice d.Multiple ChoiceTB 02-27 The wages of factorymaintenance personnel would u...Assignment Print View28 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 30 preview image78.79.TB 02-28 Direct materials are a part of:Direct materials are a part of:choice a.choice b.→choice c.choice d.Multiple ChoiceTB 02-28 Direct materials are apart of:TB 02-29 Manufacturing overhead consists of:Manufacturing overhead consists of:all manufacturing costs.→all manufacturing costs, except direct materials and direct labour.indirect materials but not indirect labour.indirect labour but not indirect materials.Multiple ChoiceTB 02-29 Manufacturing overheadconsists of:Assignment Print View29 of 8803/12/2014, 10:46 PM
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Introduction To Managerial Accounting With Connect With Smartbook, 4th Edition Test Bank - Page 31 preview image80.81.TB 02-30 Which of the following should NOT be included as p...Which of the following should NOT be included as part of manufacturing overhead at a company that makes officefurniture?→Sheet steel in a file cabinet made by the company.Manufacturing equipment depreciation.Idle time for direct labour.Taxes on a factory building.Multiple ChoiceTB 02-30 Which of the followingshould NOT be included as p...TB 02-31 Rossiter Company failed to record a credit sale at...Rossiter Company failed to record a credit sale at the end of the year, although the reduction in finished goodsinventories was correctly recorded when the goods were shipped to the customer. Which one of the followingstatements is correct?Accounts receivable was not affected, inventory was not affected, sales were understated, andcost of goods sold was understated.Accounts receivable was understated, inventory was overstated, sales were understated, andcost of goods sold was overstated.Accounts receivable was not affected, inventory was understated, sales were understated, andcost of goods sold was understated.→Accounts receivable was understated, inventory was not affected, sales were understated, andcost of goods sold was not affected.Multiple ChoiceTB 02-31 Rossiter Company failedto record a credit sale at...Assignment Print View30 of 8803/12/2014, 10:46 PM
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