ch19 Managerial Accounting.pdf - Chapter 19 Do it!...

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Chapter 19Do it!Indicate whether the following statements are true or false.1.Managerial accountants have a single role within an organization, collecting andreporting costs to management.2.Financial accounting reports are general-purpose and intended for external users.3.Managerial accounting reports are special-purpose and issued as frequently asneeded.4.Managers’ activities and responsibilities can be classified into three broad functions:ManagerialAccountingConcepts
5.As a result of the Sarbanes-Oxley Act of 2002, managerial accounting reports mustnow comply with generally accepted accounting principles (GAAP).6.Top managers must certify that a company maintains an adequate system of inter-nal controls.Solutionaction planUnderstand that mana-gerial accounting is a fieldof accounting that provideseconomic and financial in-formation for managers andother internal users.Understand that financialaccounting provides informa-tion for external users.Analyze which users
2.True.3.True.4.False. Managers’ activities are classified into three broad functions: planning,directing, and controlling. Planning requires managers to look ahead to estab-lish objectives. Directing involves coordinating a company’s diverse activitiesand human resources to produce a smooth-running operation. Controlling iskeeping the company’s activities on track.5.False. SOX clarifies top management’s responsibility for the company’sfinancial statements. In addition, top managers must certify that the companymaintains an adequate system of internal control to safeguard the company’sassets and ensure accurate financial reports.6.True.Related exercise material:BE19-1, BE19-2, BE19-3, E19-1, andDo it!19-1.[The Navigator]require which different typesof information.
Related exercise material:BE19-4, BE19-5, BE19-6, BE19-7, E19-2, E19-3, E19-4, E19-5, E19-6, E19-7,andDo it!19-2.[The Navigator]Tires, spokes, and handlebars are direct materials. Salaries of employees whoput tires on the wheels are direct labor. All of the other costs are manufacturingoverhead.Do it!A bicycle company has these costs: tires, salaries of employees who put tires on thewheels, factory building depreciation, lubricants, spokes, salary of factory manager,handlebars, and salaries of factory maintenance employees. Classify each cost asdirect materials, direct labor, or overhead.

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Term
Winter
Professor
KIMLEE
Tags
Balance Sheet, factory manager, Factory Utilities, Superior Manufacturing Company

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