This work of ACC 560 Week 2 Quiz 1 shows the solutions to the following points:
1. Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.
2. Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.
3. Managerial accounting applies to all forms of business organizations.
4. Determining the unit cost of manufacturing a product is an output of financial accounting.
5. Managerial accounting internal reports are prepared more frequently than are classified financial statements.
6. The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity.
7. The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company.
8. Controlling is the process of determining whether planned goals are being met.
9. Decision-making is an integral part of the planning, directing, and controlling functions.
10. Direct materials costs and indirect materials costs are manufacturing overhead.
11. Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.
12. Raw materials are equal to direct materials minus indirect materials.
13. Raw materials that can be conveniently and directly associated with a finished product are called materials overhead.
14. The total cost of a finished product does not generally contain equal amounts of materials, labor, and overhead costs.
15. Both direct labor cost and indirect labor cost are product costs.
16. Period costs include selling and administrative expenses.
17. Indirect materials and indirect labor are both inventoriable costs.
18. Direct materials and direct labor are the only product costs.
19. Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.
20. Period costs are not inventoriable costs.
21. Ending finished goods inventory appears on both the balance sheet and the income statement of a manufacturing company.
22. The beginning work in process inventory appears on both the balance sheet and the cost of goods manufactured schedule of a manufacturing company.
23. In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales.
24. Finished goods inventory does not appear on a cost of goods manufactured schedule.
25. 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.
26. Finished goods inventory for a manufacturing company is equivalent to merchandise inventory for a merchandising company.
27. Raw materials inventory shows the cost of completed goods available for sale to customers.
28. The balanced scorecard approach attempts to maintain as little inventory on hand as possible.
29. The supply chain is all the activities associated with providing a product or service.
30. Many companies have significantly lowered inventory levels and costs using just-in-time inventory methods.
31. Managerial accounting is primarily concerned with managers and external users.
32. Planning involves coordinating the diverse activities and human resources of a company to produce a smooth running operation.
33. When the physical association of raw materials with the finished product is too small to trace in terms of cost, they are usually classified as indirect materials.