Chapter 1: Environment and Theoretical Structure of Financial Accounting: Homework
5. The primary objective of financial accounting is to provide information to both investors and
creditors so they can make wise in
1. A distinguishing feature of managerial accounting is
a. external users.
b. general-purpose reports.
c. very detailed reports.
d. quarterly and annual reports.
1. Managerial accounting is also called
a. management accounting.
1. When manufacturing overhead costs are assigned to production in a process cost
system, they are debited to
a. the Finished Goods Inventory account.
b Cost of Goods Sold.
c. a Manufacturing Overhead account.
d a Work in Process account.
Bryson Company has just developed a new product. The following data is available
for this product:
Desired ROI per unit
Fixed cost per unit
Variable cost per unit
Total cost per unit
The target selling price for this produc
The direct materials budget shows:
Desired ending direct materials 48,000 pounds
Total materials required 69,000 pounds
Direct materials purchases 63,200 pounds
The total direct materials needed for production is
The standard number of hours that should have been worked for the output attained
is 6,000 direct labor hours and the actual number of direct labor hours worked was 6,300. If
the direct labor price variance was $3,150 unfavorable, and the st
In calculating cash flows from operating activities using the indirect method, a gain
on the sale of equipment is
a added to net income.
b deducted from net income.
c ignored because it does not
. affect cash.
d not reported on a stateme
1. Time tickets should be approved by
a. the audit committee.
c. the employee's supervisor.
d. the payroll department.
1. Under an effective system of internal control, the authorization for issuing materials is made
The margin of safety ratio is
a expected sales divided by break-even sales.
b expected sales less break-even sales.
c margin of safety in dollars divided by
. expected sales.
d margin of safety in dollars divided by break. even sales.
Two costs at Bradshaw Company appear below for specific months of operation.
Which type of costs ar
1. Companies that switch to ABC often find they have
a. been overpricing some products.
b. possibly losing market share to competitors.
c. been sacrificing profitability by underpricing some products.
d. All of the these answers are correct.