Managerial Accounting Final Exam Review LATEST EDITION WITH CORRET ANSWERS 2024 SOLUTION GUARANTEED GRADE A+

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1. ________ gathers, summarizes, and reports on the financial impact of changes to business operations. a. Managerial accounting b. Planning c. Directing d. Controlling a. Managerial accounting ... 2. Which of the following certifications is issued by the IMA? a. CISA b. CFP c. CMA d. CPA c. CMA 3. Which of following statements is true? a. Managerial accounting focuses on historical transactions. b. Financial accounting focuses on future data. c. Management accounting focuses on relevant data. d. Managerial accounting uses the cash basis for recording transactions. c. Management accounting focuses on relevant data. We have an expert-written solution to this problem! 4. Managerial accountants may be responsible for a. providing decision support. b. communicating results. c. analyzing data. d. All of these. d. All of these We have an expert-written solution to this problem! 5. Lean production does not cut the throughput time of a manufacturing concern. a. True b. False a. True 6. Which of the following are merchandising companies? a. Manufacturers b. Retailers c. Wholesalers d. Both retailers and wholesalers d. Both retailers and wholesalers 7. The balance sheet of a service company has a. raw materials inventory. b. little or no inventory. c. three categories of inventory. d. two categories of inventory. b. little or no inventory We have an expert-written solution to this problem! 8. Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Prime costs for Country Furniture Company totaled a. $92,000. b. $247,500. c. $250,500. d. $368,500. c. $250,500 9. Period costs are a. always recorded as an expense. b. always considered part of the inventory. c. expensed only when the inventory is sold. d. None of these. a. always recorded as an expense 10. Direct labor for a company was $145,000; manufacturing overhead was $300,000; and direct materials were $270,000. Conversion costs would total a. $570,000. b. $715,000. c. $415,000. d. $445,000. d. $445,000 (DL + MOH) 11. Here are selected basic data for Wilson Company: If the company allocates overhead based on direct labor cost, what are the total actual manufacturing overhead costs? a. $280,500 b. $171,400 c. $258,100 d. $226,800 c. $258,000 (add together factory and indirect) 12. Federer Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: If Federer Company uses direct labor cost as the allocation base, what would the predetermined manufacturing overhead rate be? a. 70% b. 75% c. 91% d. 85% a. 70% (est. MOH cost / est. direct labor cost = 425,000/610,000) 13. A job costing system can be used by which types of companies? a. Manufacturing and merchandising businesses b. Service and manufacturing businesses c. Service, manufacturing, and merchandising businesses d. Service and merchandising businesses c. Service, manufacturing, and merchandising businesses 14. How is the cost-plus price determined? a. Cost - markup on cost b. Cost + markup on cost c. Cost × markup on cost d. Cost ÷ markup on cost b. Cost + markup on cost 15. The two basic types of costing systems are a. product costing and materials inventory costing. b. periodic costing and perpetual costing. c. job costing and process costing. d. periodic costing and process costing. c. job costing and process costing. 16. ________ is the system for assigning costs to unique cost objects. a. Time costing b. Process costing c. Job costing d. Service costing c. Job costing 18. The benefits of using the ABC costing system are higher if the company a. has high indirect costs. b. produces many different products that use differing amounts of resources. c. has high indirect costs and produces many different products that use differing amounts of resources. d. produces only one product. c. has high indirect costs and produces many different products that use differing amounts of resources. 19. Which of the following is a lean strategy? a. Group like machines together. b. Produce in smaller batches than a traditional system. c. Maintain a higher level of inventory than a traditional system. d. Lengthen setup times relative to a traditional system. b. Produce in smaller batches than a traditional system. 20. Which of the following cost of quality categories represent the cost incurred to rework a product after the company detects a poor-quality product before the company delivers the product to a consumer? a. Lean production b. Value added activity c. Internal failure costs d. External failure costs c. Internal failure costs 21. The first step in developing an ABC system is a. calculate an activity cost allocation rate for each activity. b. allocate the costs to the cost object using the activity cost allocation rates. c. select an allocation base for each activity. d. identify the primary activities and estimate a total cost pool for each. d. identify the primary activities and estimate a total cost pool for each. 22. Which of the following is the first step of the 5-step process costing procedure? a. Compute output in terms of equivalent units b. Summarize total costs to account for c. Summarize the flow of physical units d. Compute the cost per equivalent unit c. Summarize the flow of physical units 23. How is the cost per equivalent unit computed? a. Total equivalent units divided by total costs to account for b. Total costs to account for divided by total equivalent units c. Costs in beginning WIP Inventory divided by equivalent units in beginning WIP d. Costs added to production during the month divided by equivalent units in ending WIP b. Total costs to account for divided by total equivalent units 24. In a department, 26,000 units are completed and transferred out and 7,400 remain in ending WIP at 65% complete. If an equivalent unit costs $9.00 for direct materials, what is the value of materials transferred out? a. $43,290 b. $167,400 c. $66,600 d. $234,000 d. $234,000 (26,000x9) 25. How are manufacturing costs treated in process costing? a. The manufacturing costs are added only when the goods are in finished inventory. b. The manufacturing costs are added only when the goods are sold. c. The manufacturing costs always follow the physical movement of the product. d. None of these. c. The manufacturing costs always follow the physical movement of the product. 26. Baxter Company produces children's wiffle ball sets using a three-step sequential process that includes molding, coloring and finishing. When the sets are completely finished, out of which account should the cost be transferred? a. Finished Goods Inventory b. WIP InventoryWIP Inventory-Coloring c. WIP InventoryWIP Inventory-Finishing d. WIP InventoryWIP Inventory-Molding a. Finished Goods Inventory 27. Sea Side Enterprises is trying to predict the cost associated with producing its anchors. At a production level of 5,000 anchors, Sea Side Enterprises average cost per anchor is $52.00. If $15,000 of the costs are fixed, and the plant manager uses the average cost per unit to predict total costs, her forecast for 6,000 anchors will be a. $260,000. b. $312,000. c. $309,000. d. $52,000. c. $309,000 28. To follow is information about the units produced and total manufacturing costs for Big Oak Enterprises for the past six months. Using the high-low method, what is the variable cost per unit? a. $1.44 b. $1.04 c. $0.50 d. $2.00 c. $0.50 29. Coastal Incorporated wanted to determine the relationship between its monthly operating costs and a potential cost driver, machine hours. The output of a regression analysis showed the following information (note: only a portion of the regression analysis results is presented here): What is the variable cost per machine hour (rounded to the nearest cent)? a. $0.72 b. $2,945.95 c. $0.99 d. $67.58 a. $0.72 30. The contribution margin is equal to a. sales minus cost of goods sold. b. sales minus operating expenses. c. sales minus fixed expenses. d. sales minus variable expenses. d. sales minus variable expenses. 31. Capetown Corporation has total sales revenues of $930,000. If its total fixed costs are $182,000 and its total variable costs are $267,000, then the total contribution margin is a. total revenue minus total fixed costs. b. total revenue minus total variable costs. c. total variable costs minus total fixed costs. d. equal to operating income. b. total revenue minus total variable costs. 32. Given breakeven sales in units of 45,000 and a unit contribution margin of $4, how many units must be sold to reach a target operating income of $18,000? [Show More]

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