Acct midterm 1

goal of managerial accounting

planning, control, and decision making

Which of the following is a difference between financial accounting and managerial accounting?

Managerial accounting uses monetary and nonmonetary information, whereas financial accounting reports monetary information.

Which one of the following is true of the manufacturing operations of a company using process costing?

Manufacturing overhead and direct labor costs are referred to as conversion costs.

which of the following is a part of the journal entry to close the Manufacturing Overhead account at the end of the period?

A $21,000 debit to Cost of Goods Sold

Which of the following is not an advantage of activity-based costing over traditional volume-based costing systems?

ABC is less costly to implement than traditional systems.

How are equivalent units calculated in a process costing system?

By adding the units completed to the equivalent units in ending Work in Process

The journal entry to record the transfer of cost of goods manufactured to finished goods would include a:

Credit to Work in Process Inventory

In a process costing system with three departments, when items are sold, the cost of the items is moved from

Finished Goods to Cost of Goods Sold.

Which one of the following is true as it relates to the management function of control?

It is achieved by evaluating the performance of managers.

Which one of the following is the last step in the planning and control process?

Make decisions based on the evaluation of the results.

Happy Foods uses ABC costing. Which of the following is most likely to be a cost driver for the cost of cashiering at a convenience store?

Number of customers processed

Which one of the following is a costing system commonly used by companies that produce a large number of homogeneous units in a continuous production process?

Process costing system

Overhead rate calculation

by dividing estimated overhead divided by estimated direct labor hours. Then, the rate is multiplied by the actual activity.

When direct labor costs are incurred in the Mixing Department, the journal entry to record the transaction includes a

debit to Work in Process, Mixing Department.

budgets

financial plans prepared by managerial accountants

An allocation base

ideally uses a cause-and-effect relationship to the cost pool.

The fundamental difference between managerial and financial accounting is that

managerial accounting provides information for decision makers within the org, while financial acct provides info for individuals and institutions external to the org

A cost incurred by the Baking Department that is transferred to the Packaging Department is called a

transferred-in cost by the Packaging Department.