Understanding Key Concepts in Managerial Accounting

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Understanding Key Concepts in Managerial AccountingGrading SummaryThese are the automatically computed resultsof your exam. Grades for essay questions,and comments from your instructor, are in the"Details" section below.Date Taken:TimeSpent:Points Received:170 / 170(100%)Question Type:# Of Questions:# Correct:Multiple Choice2525Short1N/AEssay2N/AGrade Details-All QuestionsPage:1231.Question :(TCO 1) Which of the following isnota difference betweenfinancial accounting and managerial accounting?Student Answer:Financial accounting is primarily concerned withreporting the past, while managerial accounting is moreconcerned with the future.Managerial accounting uses more nonmonetaryinformation than is used in financial accounting.Managerial accounting is primarily concerned withproviding information for external users while financialaccounting is concerned with internal users.Financial accounting must follow GAAP whilemanagerial accounting is not required to follow GAAP.Instructor Explanation:Chapter 1, Page 7Points Received:4 of 4Comments:2.Question :TCO 1) Which of the following statements regarding fixedcosts is true?Student Answer:When production increases, fixed cost per unitincreases.When production decreases,total fixed costs decrease.When production increases, fixed cost per unitdecreases.When production decreases, total fixed costs increase.Instructor Explanation:Chapter 1, Page 9

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Points Received:4 of 4Comments:3.Question :(TCO 1) You own a car and are trying to decide whether ornot to trade it in and buy a new car. Which of the followingcosts is an opportunity cost in this situation?Student Answer:the trip to Cancun that you will not be able totake ifyou buy the carthe cost of the car you are trading inthe cost of your books for this termthe cost of your car insurance last yearInstructor Explanation:Chapter 1, Page 9Points Received:4 of 4Comments:4.Question :(TCO 1) Shula’s 347 Grill has budgeted the following costsfor a month in which 1,600 steak dinners will be producedand sold: materials, $4,080; hourly labor (variable),$5,200; rent (fixed), $1,700; depreciation, $800; and otherfixed costs, $600. Each steak dinner sells for $14.00 each.How much is the budgeted variable cost per unit?Student Answer:$5.80$7.74$6.68$3.25InstructorExplanation:Chapter 1, Page 8($4,080 + $5,200) / 1,600 = $5.80PointsReceived:4 of 4Comments:5.Question :(TCO 1) Which of the following is an example of amanufacturing overhead cost?Student Answer:security at the manufacturing plant

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fabric used to produce shirtscost ofshipping product to customersthe salary of the president of the companyInstructor Explanation:Chapter 2, Page 37Points Received:4 of 4Comments:6.Question :(TCO 1) Product costsStudent Answer:are alsocalled manufacturing costs.are considered an asset until the finished goods aresold.become an expense when the goods are sold.All of the above answers are correct.Instructor Explanation:Chapter 2, Page 38PointsReceived:4 of 4Comments:7.Question :(TCO 1) At December 31, 2010, WDT Inc. has a balance inthe Work in Process Inventory account of $62,000. AtJanuary 1, 2010, the balance was $55,000. Currentmanufacturing costs for the year are$292,000, and cost ofgoods sold is $284,000. How much is cost of goodsmanufactured?Student Answer:$292,000$299,000$277,000$285,000InstructorExplanation:Chapter 2, Page 43$55,000 + $292,000-$62,000 =$285,000Points Received:4 of 4Comments:

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8.Question :(TCO 2) BCS Company applies manufacturing overheadbased on direct laborhours. Information concerningmanufacturing overhead and labor for August follows:EstimatedActualOverhead cost$174,000$171,000Direct laborhours5,8005,900Direct laborcost$87,000$89,975How much overhead should be applied intotal duringAugust?Student Answer:177,000179,950171,100168,200InstructorExplanation:Chapter 2, Page 54($174,000 / 5,800) x 5,900 = 177,000Points Received:4 of 4Comments:9.Question :(TCO2) Citrus Company incurred manufacturing overheadcosts of $300,000. Total overhead applied to jobs was$306,000. What was the amount of overapplied orunderapplied overhead?Student Answer:$7,000 overapplied$6,000 overapplied$6,000 underapplied$13,000 underappliedInstructor Explanation:Chapter 2, Page 55$306,000-$300,000 = $6,000 overappliedPoints Received:4 of 4

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