Question 1

During her first year with the company, Ann mistakenly accumulated some of the company's period costs in ending inventory. Which of the following indicates how this error affects the company's financial statements assuming number of units produced exceeded number of units sold during the period?

Accepted Answer

A)   Cash flows from operations are understated.
B)   Gross margin is unaffected.
C)   Net income is overstated.
D)   Inventory is understated.E) A) and B)
F) A) and C)

Question 2

Just in time systems can be used by both manufacturing and merchandising companies.

Accepted Answer

A) True 
 B)False

Question 3

For what activities do an organization's managers need accounting information?

Accepted Answer

Managers of an organization us...

Question 4

Assuming that the number of units produced exceeds the number of units sold, misclassifying period costs as product costs will overstate net income relative to what net income would be without this error.

Accepted Answer

A) True 
 B)False

Question 5

A company that incurred $1,000 in production costs reported cost of goods sold of $800 and selling costs of $100. Its ending finished goods inventory was $300.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements concerning product costs versus general, selling, and administrative costs is false?

Accepted Answer

A)   Product costs incurred during the period will initially appear as inventory on the balance sheet.
B)   General, selling, and administrative costs are always expensed when paid.
C)   Product costs may be divided between the balance sheet and income statement.
D)   General, selling, and administrative costs never appear as inventory on the balance sheet.E) A) and D)
F) A) and C)

Question 7

Costs associated with holding inventory often include:

Accepted Answer

A)   theft, damage, and obsolescence.
B)   financing.
C)   warehouse space.
D)   supervision.
E)   All of these.F) D) and E)
G) All of the above

Question 8

During which of the following activities, value is considered to be added to a product or service takes place?

Accepted Answer

A)   Process time
B)   Move time
C)   Inspection time
D)   Rework timeE) A) and D)
F) B) and D)

Exam 10: An Introduction to Management Accounting

During which of the following activities, value is considered to be added to a product or service takes place?

Correct Answer
verified

Assuming that the number of units produced exceeds the number of units sold, misclassifying period costs as product costs will overstate net income relative to what net income would be without this error.

Correct Answer
verified

For what activities do an organization's managers need accounting information?

Correct Answer
verified
Managers of an organization us...
View Answer

Costs associated with holding inventory often include:

Correct Answer
verified

A company that incurred $1,000 in production costs reported cost of goods sold of $800 and selling costs of $100. Its ending finished goods inventory was $300.

Correct Answer
verified

During her first year with the company, Ann mistakenly accumulated some of the company's period costs in ending inventory. Which of the following indicates how this error affects the company's financial statements assuming number of units produced exceeded number of units sold during the period?

Correct Answer
verified

Just in time systems can be used by both manufacturing and merchandising companies.

Correct Answer
verified

Which of the following statements concerning product costs versus general, selling, and administrative costs is false?

Correct Answer
verified

Exam 10: An Introduction to Management Accounting

During which of the following activities, value is considered to be added to a product or service takes place?

Correct AnswerverifiedShow Answer

Assuming that the number of units produced exceeds the number of units sold, misclassifying period costs as product costs will overstate net income relative to what net income would be without this error.

Correct AnswerverifiedShow Answer

For what activities do an organization's managers need accounting information?

Correct AnswerverifiedManagers of an organization us...View AnswerShow Answer

Costs associated with holding inventory often include:

Correct AnswerverifiedShow Answer

A company that incurred $1,000 in production costs reported cost of goods sold of $800 and selling costs of $100. Its ending finished goods inventory was $300.

Correct AnswerverifiedShow Answer

During her first year with the company, Ann mistakenly accumulated some of the company's period costs in ending inventory. Which of the following indicates how this error affects the company's financial statements assuming number of units produced exceeded number of units sold during the period?

Correct AnswerverifiedShow Answer

Just in time systems can be used by both manufacturing and merchandising companies.

Correct AnswerverifiedShow Answer

Which of the following statements concerning product costs versus general, selling, and administrative costs is false?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Managers of an organization us...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified