WGU C202-Managerial Accounting – Solved 100%

Managerial accounting applies to all types of businesses, including service, merchandising, and manufacturing, as well as to all forms of business organizations. True False - ANSWER True Financial and managerial ...

Managerial accounting applies to all types of businesses, including service, merchandising, and manufacturing, as well as to all forms of business organizations. True False - ANSWER True Financial and managerial accounting are similar in that both produce general-purpose reports. deal with the economic events of an enterprise. have the same primary users. have reports that are prepared quarterly and annually. - ANSWER deal with the economic events of an enterprise. Managerial accounting applies to each of the following types of businesses except manufacturing firms. service firms. managerial accounting applies to all types of firms. merchandising firms. - ANSWER managerial accounting applies to all types of firms. Managerial accounting information is generally prepared for regulatory agencies. managers. stockholders. creditors. - ANSWER managers. Managerial accounting does not encompass profit planning. calculating product cost. calculating earnings per share. determining cost behavior. - ANSWER calculating earnings per share. Managerial accounting is applicable to service entities. manufacturing entities. not-for-profit entities. all of these. - ANSWER all of these. Management accountants would not assist in budget planning. prepare reports primarily for external users. determine cost behavior. - ANSWER prepare reports primarily for external users. Internal reports must be communicated annually. daily. monthly. as needed. - ANSWER as needed. Which of the following statements about internal reports is not true? Internal reports may discuss prospective events. Most internal reports are summarized rather than detailed. The content of internal reports may extend beyond the double- entry accounting system. Internal reports may show all amounts at market values. - ANSWER Most internal reports are summarized rather than detailed. Which of the following statements is true about managerial accounting? It is primarily for internal users such as stockholders and managers. It must be prepared using generally accepting accounting principles. It pertains to a business as a whole. It provides more detailed information than financial accounting does. - ANSWER It provides more detailed information than financial accounting does. Justin Bleeber has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false. 1. Financial accounting focuses on providing information to internal users. - ANSWER False Justin Bleeber has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false. 2. Staff positions are directly involved in the company's primary revenue-generating activities. - ANSWER False Justin Bleeber has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false. 3.Preparation of budgets is part of financial accounting. - ANSWER False Justin Bleeber has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false. 4.Managerial accounting applies only to merchandising and manufacturing companies. - ANSWER False Justin Bleeber has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false. 5.Both managerial accounting and financial accounting deal with many of the same economic events. - ANSWER True Justin Bleeber has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false. 6.Managerial accounting reports are prepared only quarterly and annually. - ANSWER False Justin Bleeber has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false. 7.Financial accounting reports are general-purpose reports. - ANSWER True Justin Bleeber has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false. 8.Managerial accounting reports pertain to subunits of the business. - ANSWER True Justin Bleeber has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false. 9.Managerial accounting reports must comply with generally accepted accounting principles. - ANSWER False Justin Bleeber has prepared the following list of statements about managerial accounting, financial accounting, and the functions of management. Identify each statement as true or false. 10. The company treasurer reports directly to the vice president of operations. - ANSWER False Primary users of reports (Financial) Internal External - ANSWER External Primary users of reports (Managerial) Internal External - ANSWER Internal Types of reports (Managerial) Internal Reports Financial Statements - ANSWER Internal Reports Types of reports (Financial) Internal Reports Financial Statements - ANSWER Financial Statements Frequency of reports (Financial) Quarterly and Annually As Frequently as Needed - ANSWER Quarterly and Annually Frequency of reports (Managerial) Quarterly and Annually As Frequently as Needed - ANSWER As Frequently as Needed Purpose of reports (Managerial) General - Purpose Special-Purpose -- Information needed for specific decisions - ANSWER Special-Purpose -- Information needed for specific decisions Purpose of reports (Financial) General - Purpose Special-Purpose -- Information needed for specific decisions - ANSWER General - Purpose Contents of reports (Financial) Generally Accepted Accounting Principles Relevance to Decisions - ANSWER Generally Accepted Accounting Principles Contents of reports (Managerial) Generally Accepted Accounting Principles Relevance to Decisions - ANSWER Relevance to Decisions Verification Process (Managerial) Annual Audit by Certified Public Accountant No Independent Audits - ANSWER No Independent Audits Verification Process (Financial) Annual Audit by Certified Public Accountant No Independent Audits - ANSWER Annual Audit by Certified Public Accountant Indicate whether the following statements are true or false. 1.Managerial accounting reports focus on manufacturing and non-manufacturing costs, but are also used in the budget process. - ANSWER False Indicate whether the following statements are true or false. 2.Financial accounting reports pertain to subunits of the business and are very detailed. - ANSWER False Indicate whether the following statements are true or false. 3.Managerial accounting reports must follow GAAP and are audited by CPAs. - ANSWER False Indicate whether the following statements are true or false. 4.Managers' activities and responsibilities can be classified into three broad functions: planning, directing, and controlling. - ANSWER True Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting and which characteristics are more closely associated with managerial accounting. 1. General-purpose reports. - ANSWER Financial Accounting Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting and which characteristics are more closely associated with managerial accounting. 2. Reports are used internally. - ANSWER Managerial Accounting Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting and which characteristics are more closely associated with managerial accounting. 3. Prepared in accordance with generally accepted accounting principles. - ANSWER Financial Accounting Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting and which characteristics are more closely associated with managerial accounting. 4. Special purpose reports. - ANSWER Managerial Accounting Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting and which characteristics are more closely associated with managerial accounting. 5. Limited to historical cost data. - ANSWER Financial Accounting Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting and which characteristics are more closely associated with managerial accounting. 6. Reporting standard is relevance to the decision to be made. - ANSWER Managerial Accounting Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting and which characteristics are more closely associated with managerial accounting. 7. Financial statements. - ANSWER Financial Accounting Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting and which characteristics are more closely associated with managerial accounting. 8. Reports generally pertain to the business as a whole. - ANSWER Financial Accounting Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting and which characteristics are more closely associated with managerial accounting. 9. Reports generally pertain to subunits. - ANSWER Managerial Accounting Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting and which characteristics are more closely associated with managerial accounting. 10. Reports issued quarterly or annually. - ANSWER Financial Accounting Indirect material costs are easily traced to products because of their physical association with the finished product. True False - ANSWER False Which one of the following is not a manufacturing cost? Factory maintenance. Wages of assembly workers. Advertising cost. - ANSWER Advertising cost. Product costs are costs that are a necessary and integral part of producing the finished product. True False - ANSWER True Which group of costs consists of only product costs? Direct labor, indirect labor, factory utilities. Direct labor, direct materials, and selling expenses. Indirect labor, factory building depreciation, administrative expenses. Factory maintenance, sales commissions, salaries paid to sales clerks. - ANSWER Direct labor, indirect labor, factory utilities. Indirect labor is a period cost. raw material cost. product cost. non-manufacturing cost. - ANSWER product cost. Which of the following costs are classified as a period cost? Wages paid to a production department supervisor. Wages paid to a factory custodian. Wages paid to a cost accountant department supervisor. Wages paid to an assembly worker. - ANSWER Wages paid to a cost accountant department supervisor. Each of the following is a period cost except selling expenses. administrative expenses. indirect labor. non-manufacturing costs. - ANSWER indirect labor. Direct materials costs and indirect materials costs are manufacturing overhead. True False - ANSWER False Property taxes on a manufacturing plant are an element of a Product Cost Period Cost No Yes Yes No Yes Yes No No - ANSWER Product Cost Period Cost Yes No For a manufacturing company, which of the following is an example of a period cost rather than a product cost? Insurance on factory equipment. Depreciation on factory equipment. Wages of salespersons. Wages of machine operators. - ANSWER Wages of salespersons Both direct materials and indirect materials are merchandise inventory. manufacturing overhead. raw materials. sold directly to customers by a manufacturing company. - ANSWER raw materials. The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is direct labor. manufacturing overhead. indirect materials. indirect labor. - ANSWER direct labor. Which one of the following is not a cost element in manufacturing a product? Direct labor. Manufacturing overhead. Office salaries. Direct materials. - ANSWER Office salaries. Identify whether each of the following costs should be classified as product costs or period costs. (a) Manufacturing overhead. - ANSWER Product Costs Identify whether each of the following costs should be classified as product costs or period costs. (b) Selling expenses. - ANSWER Period Costs Identify whether each of the following costs should be classified as product costs or period costs. (c) Administrative expenses. - ANSWER Period Costs Identify whether each of the following costs should be classified as product costs or period costs. (d) Advertising expenses. - ANSWER Period Costs Identify whether each of the following costs should be classified as product costs or period costs. (e) Direct labor. - ANSWER Product Costs Identify whether each of the following costs should be classified as product costs or period costs. (f) Direct materials. - ANSWER Product Costs Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured. True False - ANSWER False If the ending work in process inventory is greater than the beginning work in process inventory, then the cost of goods manufactured will be less than total manufacturing costs for the period.