True and False-l point 1. Much of marrial accounting is directed at gathering useful information about costs for planning and control decisions 2. Control is the process of setting goals and determining ways to achieve them. 3. Managerial accounting is an activity that provides financial and nonfinancial Information to an organization's managers and other internal decision makers 4. One of the usual differences between financial and managerial accounting is the time dimension of the information reported. 5. Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable. 6. One difference between financial and managerial accounting is that the external users that use financial information must plan a company's future, but the internal users of managerial accounting information generally must decide whether to invest in or lend to a company 7. A manufacturing company that uses a cost accounting system normally has only two inventory accounts: Finished Goods Inventory and Goods in Process Inventory. 8. Cost accounting systems accumulate ensts and then assign them to products or services. 9.. There are two basic types of cost accounting systems: job order costing and periodic costing. 10. A manufacturing firm that produces a large numbers of standardized units would normally use a job order cost accounting system. 11. Job order manufacturing systems would be appropriate for companies that produce custom homes, specialized equipment, and special computer systems. 12. Job order manufacturing systems would be appropriate for companies that produce compact disks or disposable cameras. 13. The managers of process manufacturing systems focus on the series of processes needed to complete the production of products. 14. In a process manufacturing system products pass through a series of sequential processes. 15. Process manufacturing usually reflects a manufacturer that produces large quantities of identical products. 16. Traditional costing systems use multiple predetermined overhead rates. 17. Traditionally, overhead is allocated based on direct labor cost or direct labor hours. 18. Current trends in manufacturing include less direct labor and more overhead. 19. Activity-based costing locates overhead to multiple cost pools and assigns the cost pools to products using cost drivers 20. A cost driver does not generally have a direct cause-effect relationship with the resources consumed. Multiple Choice - 1 point 1. An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called: A. Continuous improvement. B. Customer orientation C. Just-in-time. D. Theory of constraints. E. Total quality measurement. 2. A management concept that encourages all managers and employees to be in tune with the wants and needs of customers, and which leads to flexible product designs and production processes, is called: A. Continuous improvement. B. Customer orientation. C. Just-in-time. D. Theory of constraints. E. Total quality management. 3. An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called: A. Continuous improvement. B. Customer orientation. C. Just-in-time manufacturing. D. Theory of constraints. E. Total quality management. 4. A management concept that applies quality improvement to all aspects of business activities is called: A. Continuous operations. B. Customer orientation. C. Just-in-time. D. Theory of constraints. E. Total quality management. 5. The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is: 4. Total quality management. 3. Managerial accounting. . Customer orientation. .. Continuous improvement. Lean business model. 6. Which of the following is not a characteristic of all fraud? A. It is done to provide direct or indirect benefit to the employee. B. It violates the employee's duties to his employer. C. It costs the employer money. D. It is secret. E. Can be intentional or unintentional 7. Cost accounting systems used by manufacturing companies are based on the A. Periodic inventory system, B. Perpetual inventory system. C. Finished goods inventories. D. Weighted average inventories E LIFO inventory system. 8. A system of accounting for manufacturing operations that produces timely information about inventories and manufacturing costs per unit of product is a: A. Finished goods accounting system. B. General accounting system. C. Manufacturing accounting system. D. Cost accounting system. E. Production accounting system. 9. Job order costing systems normally use: A. Periodic inventory systems. B. Perpetual inventory systems. C. Real inventory systems. D. General inventory systems. E. All of the above. 10. In comparison to a general accounting system for a manufacturing company, a cost accounting system places an emphasis on: A. Periodic inventory counts. B. Total costs. C. Unit costs and cost control. D. Products and average costs. E. Large volume operations involving standardized products. 11. The production activities for a customized product represent a(n): A. Operation. B. Job. C. Unit. D. Pool. E. Process. 12. A job order cost accounting system would best fit the needs of a company that makes: A. Shoes and apparel. B. Paint. C. Cement. D. Custom machinery. E. Pencils and erasers. 13. A type of manufacturing that produces customized products or services for each customer is called: A Customer orientation manufacturing B. Job order manufacturing, Just-in-time manufacturing D. Job lot manufacturing E Process manufacturing. 14. Job order manufacturing is also known as: A Mass production manufacturing. B. Process manufacturing C Unit manufacturing D. Customized manufacturing E. Standard costing. 15. Which of the following five types of products is least likely to be produced in a process manufacturing system? A Compact disks. B. Slacks for casual wear. C. Baseball hats. D. Calculators. E. Oil paintings. 16. Which of the following characteristics does not usually apply to process manufacturing systems? A. Each unit of product is separately identifiable. B. Partially completed products are transferred between processes. C. Different managers are responsible for different processes. D. The output of all processes except the final process is an input to the next process. E. In a multi-step process, there will be multiple Goods in Process accounts. 17. An expression of the activity of a process as the number of units that would have been processed during a period if all effort had been applied to units that were started and finished during the period, is called: A. Manufacturing overhead. B. Units in process. C. A job cost sheet. D. Equivalent units of production. E. Process cost summary. 18. Equivalent units of production are equal to: A. The number of units that could have been completed if all effort had been applied to units that were started and completed that period. B. The number of finished units actually produced that period. C. The number of units introduced into the process that period. D. The number of units still in process that period. E. Physical units that were completed this period from all effort being applied to them. Which of the following is not one of the four steps in accounting for production activity in a period Determine over or underapplied overhead. il Analyze the physical flow of units C Analyre equivalent units. D Determine cost per equivalent unit. E Prepare a cost reconciliation. 20. Which of the following is true when computing cost per equivalent unit in a FIFO process costing system? A. Prior period costs are combined with costs incurred in the current period and then divided by the equivalent units of production. B. Costs incurred in the current period are divided by the equivalent units of production c. Total cost to account for is divided by the equivalent units of production D. Equivalent units of production are divided by costs incurred in the current period. E. Equivalent units of production are divided by cost to account for 21. Which of the following is not typical of traditional costing systems? A. Use of a single predetermined overhead rate. B. Use of direct labor hours or direct labor cost to assign overhead. C. Assumption of correlation between direct labor and incurrence of overhead cost. D. Use of multiple cost drivers to allocate overhead. 22. In traditional costing systems, overhead is generally applied based on A. Direct labor. B. Machine hours. C. Direct material dollars. D. Units of production. 23. An activity that has a direct cause effect relationship with the resources consumed is an) A. Cost driver. B. Overhead rate. C. Cost pool. D. Product activity. 24. Which best describes the flow of overhead costs in an activity-based costing system? A. Overhead costs direct labor cost or hours products B. Overhead costs products C. Overhead costs activity cost pools cost drivers products D. Overhead costs machine hours products 25. The costs that are easiest to trace directly to products are A. Direct materials and direct labor. B. Direct labor and overhead. C. Direct materials and overhead. D. None of the above; all three costs are equally easy to trace to the product. oblem 2 - 10 points Corp. uses a job order cost accounting system. Four jobs were started during the current year. The llowing is a record of the costs incurred: Material Direct Labor Direct Labor Job Used 1010 $45.000 Hours Used $72,000 1011 8,000 59.000 77,000 1012 35.000 7,000 30,000 3.000 1013 26,000 40,000 5,000 Actual overhead costs were $55,800. The predetermined overhead allocation rate is $2.40 per direct labor hour. During the year, Jobs 1010.1012. and 1013 were completed. Also, Jobs 1010 and 1013 were sota for $387,000. Assuming that this is Dina's first year of operations (a) Calculate the balance in the Goods in Process Inventor Finished Goods Inventory, and Cost of Good Sold accounts. (b) Does the Factory Overhead account balance indicate an over or under application of overhead Prepare the entry to close this out assuming the amount is not material. 3-5 points the beginning of the year follows information from the budget of the Khalid Corp. imated factory overhead $132.000 mated direct labore 55.000 hours Estimated machine hours 41.250 hours Estimated direct labo ut $825.000 Actual factory overhead incurred during the year $144,000 Calculate the predetermined overhead allocation rate if the company uses the following as a basis (a) Direct labor hours. (1) Direct labor cost. (c) Machine hours Problem 15 points Assembly Department uses a process cost accounting system and a weighted average cost flow assumption. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During JUN $190.000 of materials costs and $135,500 in conversion costs were charged to the department. The beginning work in process inventory was $93,000 on July 1, comprised of $80,000 of materials costs and $13,000 of conversion costs. Other data for the month of July are as follows: Beginning work in process inventory, 7/1 Units completed and transferred out Ending work in process inventory, 7/31 25,000 units 90,000 units 30,000 units (40% complete) (30% complete) Instructions Answer the following questions and show computations to support your answers. 1. How many physical units have to be accounted for in July? 2. What are the equivalent units of production for materials and for conversion costs for the month of July? 3. What is the total cost assigned to the 90,000 units that were transferred out of the process in July? What is the remaining total cost of inventory within the Assembly department as of July 31? Problem # 616 points Sonoma Manufacturing has five tape vacuum). Information is presented below uring has five activity goat pools and to products (a trudget tape v w Activity Cost Pool Roat Dans Le Petit Cont DriverEat Overhead Dudak Deluxe Ordering and Receiving Ordere $ 120,000 Machine Setup Setupa 400 500 207.000 Machining Machine hours 1,000,000 150 000 100 000 Assembly 1,400,000 Inspection Inspections Instructions Production in 7000 compute the overhead cost per unit for each product 200.000 units of Deluxe, Round your answer to the nearest cent FETTI 1.200,000 300000 300,000 th of use and oot per unit for each product Production in 100.000