Managerial Accounting and Cost Concepts Chapter 1 Exam

Chapter 01 Managerial Accounting and Cost Concepts Answer Key
 

 

True / False Questions
 

1. Managerial accounting is primarily concerned with the organization as a whole rather than with segments of the organization. 
FALSE

 

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Reporting
Bloom's: Knowledge
Learning Objective: 1
Level: Easy
 

2. Managerial accounting places less emphasis on nonmonetary data than financial accounting. 
FALSE

 

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Reporting
Bloom's: Comprehension
Learning Objective: 1
Level: Medium
 

3. Direct labor is a part of both prime cost and conversion cost. 
TRUE

 

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Comprehension
Learning Objective: 2
Level: Medium
 

4. Wages paid to production supervisors would be considered direct labor. 
FALSE

 

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Knowledge
Learning Objective: 2
Level: Easy
 

5. Direct material cost combined with manufacturing overhead cost is known as conversion cost. 
FALSE

 

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Knowledge
Learning Objective: 2
Level: Easy
 

6. Advertising is a product cost as long as it promotes specific products. 
FALSE

 

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Comprehension
Learning Objective: 3
Level: Medium
 

7. Although depreciation is always a period cost in a merchandising firm, it can be a product cost in a manufacturing firm. 
TRUE

 

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Comprehension
Learning Objective: 3
Level: Medium
 

8. In a manufacturing firm, all costs are product costs. 
FALSE

 

AACSB: Reflective Thinking
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom's: Knowledge
Learning Objective: 3
Level: Easy
 

9. The cost of... [continues]

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