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1. Direct materials and direct labor are.
A. period costs
B. product costs
C. overhead costs
D. indirect costs
2. The primary uses of managerial accounting information are external users who are stockholders, creditors, and regulatory agencies.
True or False
3. Finished Goods Inventory plus Work in Process Inventory constitutes Cost of Goods Available for Sale.
4. Manufacturing Inventory is one of the three inventory accounts a manufacturing company may have.
5. If direct materials for one unit of product are $9.00, direct labor for one hour is $15.00, manufacturing overhead costs are $5.00 per direct labor hour, and one-fourth hour of direct labor is required to produce one unit of product, how much are the conversion costs for one unit of product?
A. 5.00
B. 2.50
C. 20.00
D. 15.00
6. Managerial accounting is a field of accounting that provides economic information for external users.
7. Which of the following does not apply to the content of managerial reports?
A.
Reporting standard is relevance to the decision to be made.
B.
May extend beyond double-entry accounting system.
C.
Pertains to subunits of the entity and may be very detailed.
D.
Pertains to the entity as a whole and is highly aggregated.
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