1) True and False. (4 questions worth 1 point each). For each question below, in
ID: 2555319 • Letter: 1
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1) True and False. (4 questions worth 1 point each). For each question below, indicate whether the statement is True (T) or False (F) (4 POINTS) T F 1. Asunits are completed, their cost is transferred from the Work im Process Inventory account to the T F 2 Management accounting reports provide a means of monitoring, evaluating and rewarding T F 3. Supervisor salaries, direct materials and depreciation of machinery are all examples of manufacturing T F 4. Product costs become part of inventory and are placed on the balance sheet until goods are sold. Finished Goods Inventory account. performance. overhead 2) Multiple Choice. (8 questions worth 1 point each). answer from the choices given. (8 POINTS) For the questions below, indicate the correct 1. In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a managerial accounting report is more likely to: A) Be used by decision makers outside of the business organization. B) Focus upon the operating results of the most recently completed accounting period. C) View the entire organization as the reporting entity D) Be tailored to the specific needs of an individual decision maker. 2. Which of the following is not one of the three types of inventories of a manufacturer? A) Materials inventory B) Work-in-process inventory. C) Product inventory D) Finished goods inventory Manufacturing costs do not include: A) Direct labor applicable to production within the period. B) Selling expenses related to goods manufactured during the period C) Direct materials used during the period. D) Manufacturing overhead charged to work in process during the period 3. Which of the following should not be classified as a manufacturing cost? A) Indirect factory labor costs, such as salaries of plant security guards B) Direct materials used in the production process. C) Utility bills related to factory operations D) Commissions paid to salespeople 4.Explanation / Answer
1 (1) T - to make the accouting process easier some companies comlete all wIP item & transfer them into finished good invenory prior to closing the book so that there is no WIP to account for.
(2) T- without management acoouting report it is not possible to eveluate , monitoring the resoureces it is necessary for companies to make report
(3) T -becoz as their name indicate directt matttterial & direct cost are directly traceable to the product being manufractured
(4) T : until good are sold it indicates our stock not sale that's why we considers unsold good as a inventory
2 (2) c -product inventory is nota type of manufrature inventory becoz its includes in our stock (opining or closing)
(4) D : commission is given when we want to sale good not to manufracture.
(3) b - sales is other part of trading it is not a part of manufacturing . manufracturing inclu wip , finished good
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