Internal reports must be communicated

Answer: Daily

Which of the following statements about cost accounting is not true?

Answer: a. It helps management in gathering the data needed to

determine the correct revenues and expenses for making economic
judgements by intended external users.

Which of the following statements is/are true?

Statement 1. Controlling is the process of determining whether

planned goals are being met.

Statement 2. Managerial accounting information generally pertains to

an entity as a whole and is highly aggregated.

Answer: Only Statement 1 is true.

Management accounting information is generally prepared for

Answer: Managers

Which of the following people is LEAST likely to use management

accounting information?

Answer: a shareholder evaluating a stock investment  

Managerial accounting is also called

Answer: Management accounting

A manager that is establishing objectives is performing which

management function?

Answer: Planning

Managerial accounting is applicable to

Answer: all of the above entities

Financial accounting information is used for reporting to

Answer: External parties

Which of the following is not an internal user?

Answer: Creditor

Which of the following statements is/are true?

Statement 1. Reports prepared in financial accounting are general-
purpose reports, whereas reports prepared in managerial accounting
are usually special purpose reports.

Statement 2. Managerial accounting internal reports are prepared

more frequently than are classified financial statements.

Answer: Both statements are true.

Management accounting information

Answer: Pertains to subunits of the entity and may be very detailed.

Which of the following is not a management function?

Answer: Constraining

Planning is a function that involves

Answer: setting goals and objectives for an entity.

Which of the following statements about internal reports is not true?

Answer: Most internal reports are summarized rather than detailed.

Internal reports are generally

Answer: detailed.

Which of the following statements is/are true?

Statement 1. Determining the unit cost of manufacturing a product is

an output of financial accounting.

Statement 2. Management accounting reports applies to all forms of

business organizations.
Answer: Only Statement 2 is true.

Financial statements for external users can be described

Answer: General purpose

Management accountants would not

Answer: Prepare reports primarily for external users

Management accounting

Answer: focuses on estimating future revenues, costs, and other

measures to forecast activities and their results
Amihealth, Inc. produces and sells milk flavored bubble gum. Over the last five months
Amihealth had the following production costs and production volume:
Mont Volume
Cost
h (in cases)
March P6,000 12
April 6,659 14
May 8,370 18
June 8,800 19
July 8,050 17

Using the high-low method, what is the fixed cost per month for
bubble gum?

Answer: 1,200

Prime cost and conversion cost share what common element of total
cost?

Answer: Direct Labor

Which of the following should not be included as manufacturing

overhead in the manufacture of a wooden chair?

Answer: Glue in the chair

Which of the following is an element of prime cost?

 I. Direct materials
II. Direct labor

Answer: Both I and II

Factory supplies used would be an example of which of the following?

I. Prime cost
II. Conversion cost
Answer: I only

Direct labor cost is a

I. Conversion cost
II. Prime cost

Answer: Both I and II

The following costs relate to Amita Industries for the last quarter:
Conversion cost ₱435,000
Direct materials 215,000
Manufacturing overhead 190,000
Selling and administrative
185,000
expense

What is Amita's prime cost for last quarter?

Answer: 460,000

When a unit of product is the cost object, factory overhead generally is:
Answer: an indirect manufacturing cost.

Examples of factory overhead costs are

I. Lubricants for factory machinery
II. Depreciation of factory machinery

Answer: II only
Wages paid to factory machine operators of a manufacturing plant are an element of

I.  Prime cost

II. Conversion cost
Answer: Both I and II