KA2e_SelfStudy_Ch14

KA2e_SelfStudy_Ch14 -...

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File: ch14, Chapter 14: Managerial Accounting Multiple Choice 1. Managerial accounting: a) is governed by generally accepted accounting principles. b) places emphasis on special-purpose information. c) pertains to the entity as a whole and is highly aggregated. d) is limited to cost data. Ans: b Response A: Financial accounting, not managerial accounting is governed by generally accepted accounting principles. Response B: Correct! This is an accurate statement about managerial accounting. Response C: Financial accounting, not managerial accounting pertains to the entity as a whole and is highly aggregated. Response D: Cost accounting and cost data are a subset of management accounting. 2. The management of an organization performs several broad functions. They are: a) planning, directing, and selling. b) planning, directing, and controlling. c) planning, manufacturing, and controlling. d) directing, manufacturing, and controlling. Ans: b Response A: Planning and directing are two of the functions performed by management, but selling is performed by the selling group in the organization, not by management. Response B: Correct! These are the broad functions performed by the management of an organization. Response C: Planning and controlling are two of the functions performed by management, but manufacturing is performed by the manufacturing group in the organization, not by management. Response D: Directing and controlling are two of the functions performed by management, but manufacturing is performed by the manufacturing group in the organization, not by management. 3. Direct materials are a: Product Manufacturing Period Cost Overhead Cost a) Yes Yes No b) Yes No No c) Yes Yes Yes d) No No No Ans: b Response A: Direct materials are a product cost but not manufacturing overhead or a period cost. Response B: Correct! Direct materials are a product cost but not
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This note was uploaded on 04/22/2009 for the course BCOR 2000 taught by Professor Brush during the Spring '07 term at Colorado.

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KA2e_SelfStudy_Ch14 -...

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