51. Prime costs consist of direct labor and factory overhead.
52. The manufacturing statement is also known as the schedule of manufacturing activities or the schedule of cost of goods manufactured.
53. The manufacturing statement must be prepared monthly as it is a required general-purpose financial statement.
Multiple Choice Questions
54. Managerial accounting information:
A. Is used mainly by external users.
B. Involves gathering information about costs for planning and control decisions.
C. Is generally the only accounting information available to managers.
D. Can be used for control purposes but not for planning purposes.
E. Has little to do with controlling costs.
55. Managerial accounting is different from financial accounting in that:
A. Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization.
B. Managerial accounting never includes nonmonetary information.
C. Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.
D. Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors.
E. Managerial accounting is mainly used to set stock prices.
56. Flexibility of practice when applied to managerial accounting means that:
A. The information must be presented in electronic format so that it is easily changed.
B. Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for.
C. The managerial accountants need to be on call 24 hours a day.
D. The design of a company's managerial accounting system largely depends on the nature of the business and the arrangement of the internal operations of the company.
E. Managers must be flexible with information provided in varying forms and using inconsistent measures.
57. The Malcolm Baldrige Award was established by:
A. The United Nations.
B. The U. S. Chamber of Commerce.
C. The Malcolm Baldrige Foundation.
D. The U. S. Congress.
E. The SEC.
58. Continuous improvement:
A. Is a measure of profits.
B. Is a measure of costs.
C. Rejects the notion of "good enough."
D. Is not applicable to most businesses.
E. Is possible only in service businesses.
59. An attitude of constantly seeking ways to improve company operations, including customer service, product quality, product features, the production process, and employee interactions, is called:
A. Continuous improvement.
B. Customer orientation.
C. Just-in-time.
D. Theory of constraints.
E. Total quality measurement.
60. A management concept that encourages all managers and employees to be in tune with the wants and needs of customers, and which leads to flexible product designs and production processes, is called:
A. Continuous improvement.
B. Customer orientation.
C. Just-in-time.
D. Theory of constraints.
E. Total quality management.