ACC 560 WK 2 Quiz 1
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1. Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.
2. Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.
3. Managerial accounting applies to all forms of business organizations.
4. Determining the unit cost of manufacturing a product is an output of financial accounting.
5. Managerial accounting internal reports are prepared more frequently than are classified financial statements.
6. The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity.
7. The Sarbanes-Oxley Act replaces generally accepted accounting principles in a manufacturing company.
8. Controlling is the process of determining whether planned goals are being met.
9. Decision-making is an integral part of the planning, directing, and controlling functions.
10. Direct materials costs and indirect materials costs are manufacturing overhead.
11. Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.
12. Raw materials are equal to direct materials minus indirect materials.
13. Raw materials that can be conveniently and directly associated with a finished product are called materials overhead.
14. The total cost of a finished product does not generally contain equal amounts of materials, labor, and overhead costs.
15. Both direct labor cost and indirect labor cost are product costs.
16. Period costs include selling and administrative expenses.
17. Indirect materials and indirect labor are both inventoriable costs.
18. Direct materials and direct labor are the only product costs.
19. Total period costs are deducted from total cost of work in process to calculate cost of goods manufactured.