MANAGERIAL ACCOUNTING

Test Bank for Managerial Accounting Tools for Business Decision Making, 8e Jerry Weygandt, Paul Kimmel, Donald Kieso (All Chapters) 1 / 4

CHAPTER 1

MANAGERIAL ACCOUNTING

SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOOM’S TAXONOMY

Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements

1. 1 C 9. 1 K 17. 2 C 25. 3 C 33. 2 C

2. 1 K 10. 2 K 18. 2 K 26. 3 C 34. 2 K

3. 1 K 11. 2 K 19. 2 K 27. 3 K 35. 2 K

4. 1 K 12. 2 K 20. 2 K 28. 4 K 36. 3 K

5. 1 K 13. 2 K 21. 3 K 29. 4 K 37. 3 K

6. 1 K 14. 2 C 22. 3 K 30. 4 K

7. 1 C 15. 2 C 23. 3 K 31. 1 K

8. 1 K 16. 2 K 24. 3 K 32. 1 K

Multiple Choice Questions

38. 1 K 61. 1 C 84. 2 AP 107. 3 AP 130. 3 AP

39. 1 C 62. 1 K 85. 2 C 108. 3 AP 131. 3 AP

40. 1 K 63. 1 C 86. 2 C 109. 3 AP 132. 3 AP

41. 1 C 64. 2 C 87. 2 C 110. 3 AP 133. 3 AP

42. 1 K 65. 2 K 88. 2 C 111. 3 AP 134. 3 C

43. 1 C 66. 2 C 89. 2 K 112. 3 AP 135. 3 C

44. 1 K 67. 2 K 90. 2 C 113. 3 AP 136. 4 C

45. 1 C 68. 2 K 91. 2 K 114. 3 AP 137. 4 K

46. 1 C 69. 2 K 92. 3 K 115. 3 AP 138. 4 K

47. 1 K 70. 2 C 93. 3 C 116. 3 AP 139. 4 C

48. 1 K 71. 2 C 94. 3 C 117. 3 AP 140. 4 K

49. 1 K 72. 2 K 95. 3 C 118. 3 AP 141. 4 K

50. 1 K 73. 2 K 96. 3 C 119. 3 AP 142. 1 C

51. 1 C 74. 2 C 97. 3 AP 120. 3 AP 143. 1 K

52. 1 C 75. 2 K 98. 3 K 121. 3 AP 144. 2 K

53. 1 K 76. 2 C 99. 3 C 122. 3 AP 145. 2 K

54. 1 K 77. 2 K 100. 3 C 123. 3 AP

st

146. 3 K

55. 1 K 78. 2 K 101. 3 K 124. 3 AP 147. 3 C

56. 1 K 79. 2 C 102. 3 AP 125. 3 AP

st

148. 3 K

57. 1 C 80. 2 K 103. 3 AP 126. 3 AP 149. 3 K

58. 1 K 81. 2 K 104. 3 AP 127. 3 AP

st

150. 3 K

59. 1 C 82. 2 C 105. 3 K 128. 3 AP 151. 3 K

60. 1 K 83. 2 C 106. 3 AP 129. 3 AP

Brief Exercises

152. 2 K 154. 2 K 156. 2 C 158. 3 AP 160. 3 AP

153. 2 K 155. 2 K 157. 3 AP 159. 3 AP 161. 3 AP

Exercises

162. 1 C 167. 2 AP 172. 3 AP 177. 3 AP 182. 3 AP

163. 2 C 168. 2 C 173. 3 AP 178. 3 AP 183. 3 AP

164. 2 C 169. 2 C 174. 3 AP 179. 3 AP 184. 3 C

165. 2 C 170. 3 AP 175. 2,3 AP 180. 3 AN 185. 3 AP

166. 2 AP 171. 3 C 176. 3 AN 181. 3 AN 2 / 4

Test Bank for Managerial Accounting, Eighth Edition

• - 2

Completion Statements

186. 1 K 189. 1 K 192. 2 K 195. 2 K 198. 3 K

187. 1 K 190. 1 K 193. 2 K 196. 3 K 199. 3 K

188. 1 K 191. 1 K 194. 2 K 197. 3 K 200. 3 K

Matching Statements

201. 1 K

Short-Answer Essay

202. 1 K 204. 2 K 206. 2 K 208. 2 K

203. 1 K 205. 2 K 207. 4 K

st This question also appears in a self-test at the student companion website.

SUMMARY OF LEARNING OBJECTIVES BY QUESTION TYPE

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 62. MC 188. C

2. TF 9. TF 42. MC 49. MC 56. MC 63. MC 189. C

3. TF 31. TF 43. MC 50. MC 57. MC 142. MC 190. C

4. TF 32. TF 44. MC 51. MC 58. MC 143. MC 191. C

• TF 38. MC 45. MC 52. MC 59. MC 162. Ex 201. MA

6. TF 39. MC 46. MC 53. MC 60. MC 186. C 202. SA

7. TF 40. MC 47. MC 54. MC 61. MC 187. C 203. SA

Learning Objective 2

• TF 20. TF 71. MC 81. MC 91. MC 165. Ex 204. SA
• TF 33. TF 72. MC 82. MC 144. MC 166. Ex 205. SA
• TF 34. TF 73. MC 83. MC 145. MC 167. Ex 206. SA
• TF 64. MC 74. MC 84. MC 152. BE 168. Ex 208. SA
• TF 65. MC 75. MC 85. MC 153. BE 169. Ex
• TF 66. MC 76. MC 86. MC 154. BE 175. Ex

16. TF 67. MC 77. MC 87. MC 155. BE 192. C

17. TF 68. MC 78. MC 88. MC 156. BE 193. C

• TF 69. MC 79. MC 89. MC 163. Ex 194. C
• TF 70. MC 80. MC 90. MC 164. Ex 195. C

Learning Objective 3

• TF 95. MC 108. MC 121. MC 134. MC 170. Ex 183. Ex
• TF 96. MC 109. MC 122. MC 135. MC 171. Ex 184. Ex
• TF 97. MC 110. MC 123. MC 146. MC 172. Ex 185. Ex
• 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 150. MC 176. Ex 199. C
• TF 102. MC 115. MC 128. MC 151. MC 177. Ex 200. C
• TF 103. MC 116. MC 129. MC 157. BE 178. Ex
• TF 104. MC 117. MC 130. MC 158. BE 179. Ex
• MC 105. MC 118. MC 131. MC 159. BE 180. Ex
• MC 106. MC 119. MC 132. MC 160. BE 181. Ex
• MC 107. MC 120. MC 133. MC 161. BE 182. Ex

• / 4

Managerial Accounting

• - 3

Learning Objective 4

28. TF 30. TF 137. MC 139. MC 141. MC

29. TF 136. MC 138. MC 140. MC 207. SA

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

MC = Multiple Choice Ex = Exercise

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 double-entry 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. 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.

• Demonstrate how to compute cost of goods manufactured and pre pare financial

statements for a manufacturer. Companies add the cost of the beginning work in process 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 from the total cost of work in process to arrive at the cost of goods manufactured. 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. 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.

• 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

• / 4