Question & Answer: All of the following are differences between Financial Accounting and Managerial Accounting except for: All of the following stat…..

Managerial Accounting Fall 2017 Exam1 Name 1. All of the following are differences between Financial Accounting and Managerial Accounting except for: Managerial emphasizes timeliness internal user focus not rules-based emphasis on objectivity reports on company segments Financial A emphasizes history B. external user focus C. must follow GAAP D. emphasis on relevance E. reports on entire company 2. All of the following statements are true about the functions of management except for A. decision making involves making a selection among competing alternatives B. budgeting is part of the controlling function C. planning involves establishing goals and how the goals will be achieved D. performance reports are part of the controlling function E. the three main functions of management are planning, controlling, and decision making 3. The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n): A) period cost. B) direct material cost. C) indirect material cost. D) opportunity cost. 4. Which of the following costs is classified as both a prime cost and a conversion cost? A) Direct materials. 8) Direct labor. C) Variable overhead D) Fixed overhead 5. Which of the following is an example of a period cost in a company that makes clothing? A) Fabric used to produce mens pants. 8) Advertising cost for a new line of clothing. C) Factory supervisors salary. D) Monthly depreciation on production equipment.

All of the following are differences between Financial Accounting and Managerial Accounting except for: All of the following statements are true about the functions of management except for: A. decision making involves making a selection among competing alternatives B. budgeting is part of the controlling function C. planning involves establishing goals and how the goals will be achieved D. performance reports are part of the controlling function E. the three main functions of management are planning, controlling, and decision making The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n): A) period cost. B) direct material cost. C) indirect material cost. D) opportunity cost. Which of the following costs is classified as both a prime cost and a conversion cost? A) Direct materials. B) Direct labor. C) Variable overhead. D) Fixed overhead. Which of the following is an example of a period cost in a company that makes clothing? A) Fabric used to produce men’s pants. B) Advertising cost for a new line of clothing. C) Factory supervisor’s salary. D) Monthly depreciation on production equipment.

Expert Answer

3. c. Indirect material cost – as it is used in production process indirectly

4. a. Direct Materials

Prime costs and Conversion costs associated with manufacturing a product: Direct materials. Direct labor. and Manufacturing overhead

5. b. Advertising cost for a new line of clothing

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