81.What term is used to describe the process of developing the organization’s objectives and translating those intocourses of action?
a.supervising
b.planning
c.improving
d.decision making
82.Which of the following is the principle reason for preparing managerial accounting reports?
a.usefulness to management
b.cost of preparation
c.clarity
d.GAAP
83.The primary goal of managerial accounting is to provide information to
a.investors
b.creditors
c.management
d.external auditors
84.Which of the following is
nota characteristic of useful managerial accounting reports?
a.accurate
b.GAAP—adhering
c.historical and estimated data
d.prepared as needed
85.Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $196,300; FactoryOverhead, $187,900; and Selling Expenses, $45,290.
a. $543,800
b. $187,900
c. $731,700
d. $384,200
86.Which of the following is
nottrue in regards to direct materials for a bakery?
a.Flour and sugar would probably be direct materials.
b.Eggs would probably be a direct material
c.Oil to lubricate factory machines would not be a direct material.
d.Paper cupcake liners, that become part of the product, must be accounted for as direct materials.
87.The cost of a manufactured product generally consists of which of the following costs?
a.direct materials cost and factory overhead cost only
b.direct labor cost and factory overhead cost only
c.direct labor cost, direct materials cost, and factory overhead cost
d.direct materials cost and direct labor cost only
88.Materials must have which two qualities in order to be classified as direct materials?
a.They must be classified as both prime costs and conversion costs.
b.They must be introduced into the process in both work-in-process inventories and finished goods inventories.
c.They must be an integral part of the finished product, but can be an insignificant portion of the total productcost.
d.They must be an integral part of the finished product and be a significant portion of the total product cost.
89.Which of the following is an example of direct materials cost for an automobile manufacturer?
a.cost of oil lubricants for factory machinery
b.cost of wages of assembly worker
c.salary of production supervisor
d.cost of interior upholstery
90.A plant manager’s salary is
a.a direct cost and an indirect cost
b.a direct cost
c.an indirect cost
d.a period cost