1. TF 8. TF 41. MC 48. MC 55. MC 63. MC 187. C

Test Bank for Managerial Accounting Tools for Business Decision Making, 9e Jerry Weygandt, Paul Kimmel, Jill Mitchell (All Chapters) 1 / 4

Item Type Item Type Item Type Item Type Item Type Item Type Item Type Learning Objective 1

1. TF 8. TF 41. MC 48. MC 55. MC 63. MC 187. C

2. TF 9. TF 42. MC 49. MC 56. MC 140. MC 188. C

3. TF 31. TF 43. MC 50. MC 57. MC 141. MC 189. C

• TF 32. TF 44. MC 51. MC 58. MC 160. Ex 199. MA

5. TF 38. MC 45. MC 52. MC 59. MC 184. C 200. SA

6. TF 39. MC 46. MC 53. MC 60. MC 185. C 201. SA

7. TF 40. MC 47. MC 54. MC 61. MC 186. C

Learning Objective 2

• TF 20. TF 70. MC 80. MC 142. MC 164. Ex 203. SA
• TF 33. TF 71. MC 81. MC 143. MC 165. Ex 204. SA
• TF 34. TF 72. MC 82. MC 150. BE 166. Ex 206. SA
• TF 63. MC 73. MC 83. MC 151. BE 167. Ex
• TF 64. MC 74. MC 84. MC 152. BE 173. Ex

15. TF 65. MC 75. MC 85. MC 153. BE 190. C

16. TF 66. MC 76. MC 86. MC 154. BE 191. C

• TF 67. MC 77. MC 87. MC 161. Ex 192. C
• TF 68. MC 78. MC 88. MC 162. Ex 193. C
• TF 69. MC 79. MC 89. MC 163. Ex 202. SA

Learning Objective 3

• TF 93. MC 106. MC 119. MC 132. MC 168. Ex 181. Ex
• TF 94. MC 107. MC 120. MC 133. MC 169. Ex 182. Ex
• TF 95. MC 108. MC 121. MC 144. MC 170. Ex 183. Ex
• TF 96. MC 109. MC 122. MC 145. MC 171. Ex 194. C
• TF 97. MC 110. MC 123. MC 146. MC 172. Ex 195. C
• TF 98. MC 111. MC 124. MC 147. MC 173. Ex 196. C
• TF 99. MC 112. MC 125. MC 148. MC 174. Ex 197. C
• TF 100. MC 113. MC 126. MC 149. MC 175. Ex 198. C
• TF 101. MC 114. MC 127. MC 155. BE 176. Ex
• TF 102. MC 115. MC 128. MC 156. BE 177. Ex
• MC 103. MC 116. MC 129. MC 157. BE 178. Ex
• MC 104. MC 117. MC 130. MC 158. BE 179. Ex
• MC 105. MC 118. MC 131. MC 159. BE 180. Ex

Learning Objective 4

28. TF 30. TF 135. MC 137. MC 139. MC

29. TF 134. MC 136. MC 138. MC 205. SA

CHAPTER

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MANAGERIAL ACCOUNTING

SUMMARY OF

LEARNING OBJECTIVES BY QUESTION TYPE 2 / 4

Test Bank for Managerial Accounting, Ninth Edition

1- 2

Note: TF = True-False BE = Brief Exercise C = Completion

MC = Multiple Choice Ex = Exercise MA = Matching SA = Short-Answer

CHAPTER LEARNING OBJECTIVES

• Identify the features of managerial accounting and the functions of management. The

primary users of managerial accounting reports , issued as frequently as needed, are internal users, who are officers, department heads, managers, and supervisors in the company. The purpose of these reports is to provide special-purpose information for a particular user for a specific decision. The content of managerial accounting reports pertains to subunits of the business. It may be very detailed, and may extend beyond the accrual accounting system.The reporting standard is relevance to the decision being made. No independent audits are required in managerial accounting.The functions of management are planning, directing, and controlling. Planning requires management to look ahead and to establish objectives. Directing involves coordinating the diverse activities and human resources of a company to produce a smooth -running operation. Controlling is the process of keeping the activities on track.

• Describe the classes of manufacturing costs and the differences between product and

period costs. Manufacturing costs are typically classified as either (1) direct materials, (2) direct labor, or (3) manufacturing overhead. Raw materials that can be physically and directly associated with the finished product during the manufacturing process are called direct materials. The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is considered direct labor. Manufacturing overhead consists of costs that are indirectly associated with the manufacture of the finished product. Manufacturing costs are typically incurred at the manufacturing facility.Product costs are costs that are a necessary and integral part of producing the finished product. Product costs are also called inventoriable costs. These costs do not become expenses until the company sells the finished goods inventory.Period costs are costs that are identified with a specific time period rather than with a salable product. These costs relate to nonmanufacturing costs and therefore are not inventoriable costs. They are expensed as incurred.

• Demonstrate how to compute cost of goods manufactured and prepare financial

statements for a manufacturer. Companies add the cost of the beginning work in process inventory to the total manufacturing costs for the current year to arrive at the total cost of work in process for the year. They then subtract the ending work in process inventory from the total cost of work in process to arrive at the cost of goods manufactured.The difference between a merchandising and a manufacturing balance sheet is in the current assets section. The current assets section of a manufacturing company's balance sheet presents three inventory accounts: finished goods inventory, work in process inventory, and raw materials inventory.The difference between a merchandising and a manufacturing income statement is in the cost of goods sold section. A manufacturing cost of goods sold section shows beginning and ending finished goods inventories and the cost of goods manufactured. 3 / 4

Managerial Accounting

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• Discuss trends in managerial accounting. Managerial accounting has experienced many

changes in recent years, including a shift toward service companies as well as emphasis on ethical behavior. Improved practices include a focus on managing the value chain through techniques such as just-in-time inventory, total quality management, activity-based costing, and theory of constraints. The balanced scorecard is now used by many companies in order to attain a more comprehensive view of the company's operations, and companies are now evaluating their performance with regard to their corporate social responsibility. Finally, data analytics and data visualizations are important tools that help businesses identify problems and opportunities, and then make informed decisions

TRUE-FALSE STATEMENTS

• Reports prepared in financial accounting are general-purpose reports while reports

prepared in managerial accounting are usually special-purpose reports.

Ans: T, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication, IMA: Reporting

• Managerial accounting information generally pertains to an entity as a whole and is highly

aggregated.

Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication, IMA: Reporting

• All forms of business organizations need managerial accounting information.

Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication, IMA: Reporting

• Determining the unit cost of manufacturing a product is an output of financial accounting.

Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Measurement Analysis and Interpretation, AICPA PC:

None, IMA: FSA

• Managerial accounting internal reports are prepared more frequently than financial

statements that are distributed externally.

Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication, IMA: Reporting

• The management function of organizing and directing is mainly concerned with setting

goals and objectives for the entity.

Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Process and Resource Management Perspectives, AICPA FC: None, AICPA PC: Leadership, IMA: Decision Analysis

• The controller of a company is responsible for all of the accounting and finance issues a

company faces.

Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: Ethics, AICPA BB: None, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting

• Controlling is the process of determining whether planned goals are being met.

Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Process and Resource Management Perspectives, AICPA FC: None, AICPA PC: Leadership, IMA: Internal Controls

• Decision-making is an integral part of the planning, directing, and controlling functions.

Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Strategic Perspective, AICPA FC: None, AICPA PC: Leadership, IMA: Decision Analysis

• Direct materials costs and indirect materials costs are both included in manufacturing

overhead.

Ans: F, LO: 2, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: None, AICPA FC: Measurement Analysis and Interpretation, AICPA PC:

None, IMA: Cost Management

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