管理会计双语

Managerial Accounting Review Question

一、

True/False Questions

For each of the following, circle the T or the F to indicate whether the statement is true or false.

1

Managerial accounting refers to the preparation and use of accounting information designed to meet

the needs of decision makers inside the business organization.

2

Product costs are selling expenses that appear on the income statement.

3

Management

accounting

reports

provide

a

means

of

monitoring

,

evaluating

and

rewarding

performance.

4

Product costs are offset against revenue in the period in which the related products are sold, rather

than the period in which the costs are incurred.

5

Manufacturing

overhead

is

considered

an

indirect

cost,

since

overhead

costs

generally

cannot

be

traced conveniently and directly to specific units of product.

6

Overhead

application

rates

allow

overhead

to

be

assigned

at

the

beginning

of

a

period

to

help

set

prices.

7

Pepsi Cola would most likely use a job order costing system.

8

Activity-based costing tracks cost to the activities that consume resources.

9

Activity based costing uses multiple activity bases to assign overhead costs to units of production.

10

The two steps required in Activity Based Costing are 1)

Identify separate activity cost pools and 2)

allocate each cost pool to the product using an appropriate cost driver

11

The new manufacturing environment is characterized by its shift toward labor intensive production

and declining manufacturing overhead costs.

12

A cost driver is an activity base that is highly correlated with manufacturing overhead costs.

13

In ABC, only one cost driver should be used in applying overhead.

14

As companies become more automated overhead costs decrease and direct labor costs increase.

15

An

equivalent

unit

measures

the

percentage

of

a

completed

units

cost

that

is

present

in

a

partially

finished unit.

16

Costs

do

not

flow

through

a

process

cost

system

in

the

same

sequence

as

actual

products

move

through the assembly process.

17

Non-value added activities are those that do not add to a product's desirability.

18

Target costing centers on new product and service development as opposed to managing the value

chain for existing products.

19

In the target costing process, target price is computed by adding the desired profit margin to the target

product cost.

20

Target cost equals target price plus profit margin.

21

Variable costs which increase in total amount in direct proportion to an increase in output represent a

constant amount per unit of output.

22

Any business which operates at less than capacity will have larger fixed costs than variable costs.

23

With variable costs, the cost per unit varies with changes in volume.

24

The contribution margin is the difference between total revenue and fixed costs.

25

The volume of output which causes fixed costs to be equal in amount to variable costs is called the

break-even point.

26

Any business which operates at less than capacity will have larger fixed costs than variable costs.

27

Margin

of

safety

is

the

dollar

amount

by

which

actual

sales

volume

exceeds

the

break-even

sales

volume.

28

Life cycle costing considers all potential resources used by the product over its entire life.

1

29

Economies of scale can be achieved by using facilities more intensively.

30

The break-even point is the level of activity at which operating income is equal to cost of goods sold.

31

Contribution margin ratio is equal to contribution margin per unit divided by unit sales price.

32

Opportunity

cost

is

the

benefit

that

could

have

been

obtained

by

pursuing

an

alternate

course

of

action.

33

All incremental revenue or incremental costs are relevant.

34

Sunk costs are relevant to decisions about replacing plant assets.

35

In determining whether to scrap or to rebuild defective units of product, the cost already incurred in

producing the defective units is not relevant.

36

In making a decision, management will look thoroughly at both relevant and irrelevant data.

37

sibility margin

is

useful

in

evaluating the consequences of short- run marketing strategies,

while contribution margin is more useful in evaluating long-term profitability.

38

The transfer price is the dollar amount used in recording sales to primary customers.

39

Under

variable

costing,

fixed

manufacturing

costs

are

treated

as

period

costs,

rather

than

product

costs.

40

The transfer price is the dollar amount used in recording sales to primary customers.

41

Variable costing treats all fixed manufacturing costs as expenses of the current period.

42

In full costing when production rises above the amount of sales, some of the fixed costs will remain

in inventory.

43

Return

on

Investment

(ROI)

tells

us

how

much

earnings

can

be

expected

for

the

average

invested

dollar.

44

Capital turnover can be improved by reducing invested capital while keeping sales constant.

45

The value chain consists of only those activities that increase the selling price of a product as it is

distributed to a customer.

46

Residual income is calculated by subtracting the minimum acceptable return on the average invested

capital from the operating income.

二、

Multiple Choice Questions

Choose the best answer for each of the following questions and insert the identifying letter in the space provided.

that are traceable to a particular unit and are inventoriable are called

A)

Period costs

B)

Product costs

C) Overhead costs

D)

Job costs

2.

.Determine the amount of manufacturing overhead given the following information:

a.

Depreciation on a factory building

$$2,400

b.

Telephone expense in factory office

750

c.

Telephone expense in sales showroom

850

d.

Factory foreman’s salary

5000

e.

Maintenance for factory`

800

f.

Maintenance for sales showroom

680

A)

$$4,010

B)

$$9,800

C)

$$8,950

D) $$10,540

that are still in the production process would be in which account?

A)

Materials inventory

B)

Work-in-process inventory

C)Finished goods inventory

D)Cost of goods sold

principal

difference

between

managerial

accounting

and

financial

accounting

is

that

managerial

accounting

information is:

2

A)

Prepared by managers.

B)

Intended primarily for use by decision makers inside the business organization.

C)

Prepared

in

accordance

with

a

set

of

accounting

principles

developed

by

the

Institute

of

Certified

Managerial Accountants.

D)

Oriented toward measuring solvency rather than profitability.

ment

accounting

systems

are

designed

to

assist

organizations

in

the

performance

of

all

of

the

following

functions except:

A)

The assignment of decision-making authority over company assets.

B)

Planning and decision-making.

C)

Monitoring, evaluating and rewarding performance.

D)

The preparation of income tax returns.

comparison with a financial statement prepared in conformity with generally accepted accounting principles, a

managerial accounting report is less likely to:

A)

Focus upon the entire organization as the accounting entity. B)

Focus upon future accounting periods.

C)

Make use of estimated amounts. D)

Be tailored to the specific needs of an individual decision maker.

the salaries of the sales staff of a manufacturing company are improperly recorded as a product cost, what will be

the likely effect on net income of the period in which the error occurs?

A)

Net income will be overstated. B)

Net income will be understated.

C)

Net income will be unaffected. D)

Net income will be understated only if inventory levels rise.

cturing overhead is best described as:

A)

All manufacturing costs other than direct materials and direct labor.

B)

All period costs associated with manufacturing operations.

C)

Indirect materials and indirect labor.

D)

All operating expenses other than selling expenses and general and administrative expenses.

pplied overhead at the end of a month:

A)

Results when actual overhead costs are less than amounts applied to work in process.

B)

Indicates a poorly designed cost accounting system.

C)

Is represented by a debit balance remaining in the Manufacturing Overhead account.

D)

Is represented by a credit balance remaining in the Manufacturing Overhead account.

account Work-in-Process Inventory

A)

Consists of completed goods that have not yet been sold

B)

Consists of goods being manufactured that are incomplete

C)

Consists of materials to be used in the production process

D)

Consists of the cost of new materials used, labor but not overhead.

Star Company uses a job order cost system.

Overhead is applied to jobs on the basis of direct labor hours.

During the current period, Job No. 288 was charged $$400 in direct materials, $$450 in direct labor, and $$180 in

manufacturing overhead.

If direct labor costs an average of $$15 per hour, the company's overhead application

rate is:

A)

$$9 per direct labor hour.

B)

$$6 per direct labor hour.

C)

$$17 per direct labor hour.

D)

$$20 per direct labor hour.

best cost system to use for a company producing a continuous stream of similar items would be a

A)

Job order system

B)

Process costing system

C) Production costing system

D)

No cost system is required when jobs are similar

Gorman

’

s Company uses a job order cost system and has established a predetermined overhead application rate

for the current year of 150% of direct labor cost, based on budgeted overhead of $$900,000 and budgeted direct

labor cost of $$600,000.

Job no. 1 was charged with direct materials of $$30,000 and with overhead of $$24,000.

3

The total cost of job no. 1:

A)

Is $$54,000.

B)

I

s $$70,000.

C)Is $$90,000.

D) Cannot be determined without additional information.

lent units of production are

A)

A measure representing the percentage of a unit's cost that has been completed.

B)

May be computed separately for each input added during production

C)

May be assigned to beginning work-in-process or ending work-in-process

D)

All of the above

lent units of production are

A)

A measure representing the percentage of a unit's cost that has been completed.

B)

May be computed separately for each input added during production

C)

May be assigned to beginning work-in-process or ending work-in-process

D)

All of the above

s costing would be suitable for

A)

Automobile repair

B) Production of television sets

C) Boat building

D)

K

itchen remodeling

Use the following to answer questions 75-76:

Riverview Company's budget for the coming year includes $$6,000,000 for manufacturing overhead, 100,000 hours of

direct labor, and 500,000 hours of machine time.

75.

Refer to the above data.

If Riverview applies overhead using a predetermined rate based on machine-hours,

what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.25 labor

hours to complete?

A)

$$6.00.

B) $$15.00.

C) $$21.00.

D)

S

ome other amount.

76.

Refer to the above data.

If Riverview applies overhead using a predetermined rate based on labor-hours, what

amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.25 labor hours

to complete?

A)

$$6.00.

B)

$$15.00.

C)

$$21.00.

D)

S

ome other amount.

s costing would be suitable for

A)

Automobile repair

B) Production of television sets

C)Boat building

D)Kitchen remodeling

one of the following is not one of the basic procedures related to ABC?

A)

Identify the activity.

B)

Create an associated activity cost pool.

C)

Transact identified cost centers.

D)

Calculate the cost per unit of activity.

es of value-adding activities include all of the following except:

A)

Product design.

B)

Assembly activities.

C)

Machinery set-up activities.

D)

Establishing efficient distribution channels.

-in-time manufacturing systems are also known as:

A)

Supply push systems.

B)Supply pull systems. C)Demand push systems. D)

Demand pull systems.

costing is directed toward:

A)

Reducing the activity costs associated with existing products.

B)

Identifying the amount by which the costs of existing products must be reduce to achieve a target profit

margin.

C)

The creation and design of products that will provide adequate profits.

D)

The improvement of existing production processes by eliminating non-value adding activities.

which element of manufacturing cycle time is value added to products?

A)

Storage and waiting time.

B)

Processing time.

C)

Movement time.

D)

Inspection time.

categories of costs associated with product quality are:

A)

External failure, internal failure, prevention, and carrying.

4