Managerial accounting is similar to financial accounting in that a. both are governed by generally accepted accounting principles. b. both deal with economic events. c. both concentrate on historical costs. d. both classify reported information in the same way.A company produces three main joint products and one by-product. The by-product's relative market value is quite low compared to that of the main products. The preferable accounting for the byproduct's net realizable value is as: a. an addition to the revenues of the other products allocated on their respective net realizable values b. revenue in the period in which it is sold c. a reduction in the joint cost to be allocated to the three main productsd. a separate net realizable value upon wCost accounting is directed toward the needs of a. regulatory agencies c. internal users b. external users d. stockholdersThe characteristic that is most often used to distinguish a product as either a joint product or a byproduct is the: a. amount of labor used in processing the product b. amount of separable product costs that are incurred in processing c. amount (i.e., weight, inches, etc.) of the product produced in the manufacturing process d. relative sales value of the products produced in the processThe controller of a company or other a. a staff manager b. an operating manager c. an accountant, not a manager d. a natural managerWhich of the following statements is (are) true? a. Standard costs serve as a device for measuring efficiency. b. Standard costs should always be revised when they differ from actual costs. c. both a and b d. neither a nor bWhich of the following is (are) true? a. Accounting is an information system that provides essential data about the economic activities of an entity to various users to aid them in making informed judgments and decisions. b. Managerial accounting reports are prepared according to generally accepted accounting principles. c. Both a and b d. Neither a nor bSymbols that can be processed electronically to identify numbers, letters, or special characters are: a. clock cards b. optical scanners c. time tickets d. bar codesA cost of having too few items on hand in inventory is: a. frequent stockouts b. excessive insurance costs c. spoilage costs d. costs of obsolescenceTheoretically, cash discounts permitted on purchased raw materials should be: a. added to other income, whether taken or not b. added to other income, only if taken c. deducted from inventory, whether taken or not d. deducted from inventory, only if takenAll of the following phrases are used as alternate terminology for "factory overhead" except: a. manufacturing expense b. indirect manufacturing cost c. other expense d. factory burdenFor which of the following businesses would a process cost system be appropriate? a. Auto repair service b. Paint manufacturer c. Specialty printer d. Custom furniture manufacturerThe bill of materials: a. is the list of materials requirements for each step in the production sequence b. informs the purchasing agent of the quantity and kind of materials needed c. contracts for quantities to be delivered d. certifies quantities received and reports results of inspection and testingTo check the accuracy of hours worked, one would ordinarily compare clock cards with: a. employee earnings records b. personnel recordsc. job tickets d. labor variance reportsAll of the following are names for the product costing method in which both fixed and variable costs are included in overhead rates, except: a. absorption costing b. conventional costing c. direct costing d. full costingAnnual demand for squash racquets is 50,000 units, and carrying costs amount to ₱2 per unit. Order costs for the company amount to ₱5. The optimum order quantity in units for squash racquets is (rounded to the nearest unit): a. 191 c. 250 b. 500 d. 100In highly automated manufacturing where direct labor is small relative to other production costs and not easily traceable to specific jobs, direct labor costs may be charged directly to: a. Income Summary b. Factory Overhead Control c. Work in Process d. Cost of Goods SoldA ratio that is employed in connection with the productivity and performance standard to measure the operating achievement of an operation is the: a. productivity-efficiency ratio b. physical output per labor-hour ratio c. base-rate ratio d. fringe-cost ratioThe department responsible for recruiting and employment procedures, training programs, job descriptions, and job evaluations is the: a. Payroll Department b. Personnel Department c. Cost Department d. Production Planning DepartmentThe condition that results either from greater productive capacity than the company could ever hope to use or from an imbalance in equipment or machinery is termed: a. theoretical capacity b. practical capacity c. idle capacity d. excess capacity
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