Accounting Expert Needed Please! 13) In comparison with a financial statement pr

Question

Accounting Expert Needed Please!

13) In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a managerial accounting report is less likely to:

a. Focus upon the entire organization as the accounting entity.

b. Focus upon future accounting periods.

c. Make use of estimated amounts.

d. Be tailored to the specific needs of an individual decision maker.

*

14) Which of the following is not one of the three types of inventories of a manufacturing company?

a. Raw materials inventory.

b. Work in process inventory.

c. Product inventory.

d. Finished goods inventory.

*

15)Debits to the Manufacturing Overhead account record:

a. The actual amounts of overhead costs incurred during a period.

b. The amount of overhead applied to production during a period.

c. The amount of overhead incurred on a specific job.

d. All conversion costs of a period.

*

16) The method used by managers when comparing unit costs with budgeted costs or other measures is broadly known as:

a. Sales management.

b. Cost control.

c. Employee evaluation.

d. Account reconciliation.

*

17)The type of cost accounting system best suited to a particular company depends on:

a. The nature of the company's manufacturing operations.

b. The requirements set forth by the FASB.

c. Government regulations.

d. The type of cost drivers available.

Explanation / Answer

13)

d. Be tailored to the specific needs of an individual decision maker.

The financial reporting is meant for different kind of stakeholders like the investors, lawmakers etc. who will make informed decisisons on the basis of the financial reporting of an entiry.

Managerial accounting deals with those aspect of accounting which is specifically meant for the management of the company in order to help them in exercising control over various functions of the entity like cost control, performance reporting etc. One of the most important purpose of the managerial accounting is to aid the management in decision making, depending upon the various kind of cost and performance reporting in different funtional area of the entity. Thus the managerial accounting report is meant to support the decisison making activities of the management of a company rather than being a reporting for the outsiders. In most of the cases, the reporting produced by managerial accounting is of confidential nature.

14)

c. Product inventory

explanation:

The three types of invenory maintained by a manufacturin company are:

Raw Material Inventory: The basic inventory which are converted into finished goods after being subjected to the conversion process.

Work in progress inventory: The units of raw material which has been subjectd to the conversion process but yet to be finished at the end of ano accounting period.

Finished goods inventory: The completed and finished product ready for sale. these are the units which are obtained after the raw materials have undergone the complete conversion process and have converted into saleable finished goods.

15)

a. The actual amounts of overhead costs incurred during a period.

The actual overhead costs are debited as they are actually incurred during the accounting period.

16)

b. Cost control

Comparing actual cost per unit with the budgeted cost or the standard cost, set for a particular product or process, provides the basic premises for cost control process for a product or process.

17)

d. The type of cost drivers available.

Depending on how the cost drivers (a factor that drives the cost of a particular activity or operation) could be identified precisely in relation to a particular activity (be it manufacturing of a product or providing a service), the types of costing system that could be used is determined. For example, in case the cost drivers are not available or could not be identified, traditional system of overhead cost allocation method is followed. However, if the cost drivers of different activities, required for producing a product or service, could be identified and measured, Activity Basedc costing system is followed.

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