Question 1

Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by choosing the letter F and indicate those characteristics which are more closely associated with managerial accounting by choosing the letter M :
-Special purpose reports

Accepted Answer

Managerial accounting is more closely associated with special purpose reports because it focuses on providing detailed and relevant information to managers within the organization for decision-making, planning, and control purposes. These reports are tailored to specific needs, situations, or decisions, unlike financial accounting reports, which are general-purpose and intended for external stakeholders.

Question 2

Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by choosing the letter F and indicate those characteristics which are more closely associated with managerial accounting by choosing the letter M :
-Limited to historical cost data

Accepted Answer

Financial accounting information is more closely associated with historical cost data, as it focuses on recording and reporting transactions that have already occurred, using historical costs to value assets and liabilities. Managerial accounting, on the other hand, often involves forward-looking information and may use a variety of costing methods beyond historical cost.

Question 3

Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by choosing the letter F and indicate those characteristics which are more closely associated with managerial accounting by choosing the letter M :
-Reporting standard is relevant to the decision to be made

Accepted Answer

Managerial accounting focuses on providing information for internal decision-making within an organization, hence the relevance of reporting standards to the decision to be made is a characteristic more closely associated with managerial accounting.

Question 4

Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by choosing the letter F and indicate those characteristics which are more closely associated with managerial accounting by choosing the letter M :
-Classified financial statements

Accepted Answer

Classified financial statements are a hallmark of financial accounting, designed to provide a structured and standardized presentation of a company's financial position and performance to external stakeholders.

Question 5

Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by choosing the letter F and indicate those characteristics which are more closely associated with managerial accounting by choosing the letter M :
-Reports generally relate to the company as a whole

Accepted Answer

Financial accounting information typically focuses on the company as a whole, providing a broad overview of its financial health and performance, which is useful for external stakeholders such as investors, creditors, and regulatory agencies. Managerial accounting, on the other hand, often provides more detailed reports that can focus on specific segments of the business, aiding internal decision-making.

Question 6

Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by choosing the letter F and indicate those characteristics which are more closely associated with managerial accounting by choosing the letter M :
-Reports generally relate to sub-units

Accepted Answer

Managerial accounting information often focuses on sub-units within an organization, such as departments or divisions, to provide managers with detailed data relevant to their specific areas of responsibility.

Question 7

Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by choosing the letter F and indicate those characteristics which are more closely associated with managerial accounting by choosing the letter M :
-Reports issued quarterly or annually

Accepted Answer

Financial accounting reports, such as income statements, balance sheets, and cash flow statements, are typically issued on a quarterly or annual basis to external stakeholders, including investors, creditors, and regulatory bodies. Managerial accounting reports, on the other hand, can be generated as needed for internal decision-making purposes and do not follow a strict quarterly or annual schedule.

Question 8

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories:
-Property rates on the factory land

Accepted Answer

Property rates on the factory land are considered a part of the manufacturing overhead (MO) because they are indirect costs that cannot be directly traced to the production of a specific product but are necessary for the production process to occur.

Question 9

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories:
-Metal used in manufacturing

Accepted Answer

Direct materials are raw materials that can be directly traced to the production of a specific product. In this case, the metal used in manufacturing eco-friendly, hybrid vehicles would be considered a direct material because it is a primary component in the production process.

Question 10

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories:
-Cabinet maker's wages

Accepted Answer

Cabinet maker's wages in the context of manufacturing eco-friendly, hybrid vehicles would be considered direct labor (DL) because it is a labor cost directly attributable to the production of the vehicles.

Question 11

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories:
-Nails and glue used in production

Accepted Answer

Nails and glue used in production are considered manufacturing overhead because they are indirect materials that are not directly traceable to a specific product.

Question 12

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories:
-Factory supervisors' salaries

Accepted Answer

Factory supervisors' salaries are considered part of manufacturing overhead (MO) because they are not directly traceable to the production of specific units of product.

Question 13

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories:
-Depreciation on factory machines

Accepted Answer

Depreciation on factory machines is considered a manufacturing overhead (MO) because it is an indirect cost associated with the manufacturing process but cannot be directly traced to specific units produced.

Question 14

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories:
-Factory electricity and power

Accepted Answer

Factory electricity and power are considered part of the manufacturing overhead (MO) because they are costs necessary for the production process but cannot be directly traced to specific units of product.

Question 15

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories:
-Carpeting for the vehicles

Accepted Answer

Carpeting for the vehicles is considered a direct material because it is a significant part of the finished product and can be directly traced to the manufacturing of the eco-friendly, hybrid vehicles.

Question 16

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories:
-Property maintenance on the factory building

Accepted Answer

Property maintenance on the factory building is considered a manufacturing overhead (MO) cost because it is not directly traceable to the production of a specific product but is necessary for the production process to occur.

Question 17

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories:
-Insurance on factory equipment

Accepted Answer

Insurance on factory equipment is considered a manufacturing overhead cost because it is not directly traceable to the production of specific goods but is necessary for the production process.

Question 18

For each item, choose all applicable cost labels. Use the codes below in your answer. More than one code may be applicable.
-Advertising

Accepted Answer

Advertising is considered a period cost because it is expensed in the period in which it is incurred and does not directly tie to the production of any specific product.

Question 19

For each item, choose all applicable cost labels. Use the codes below in your answer. More than one code may be applicable.
-Direct materials used

Accepted Answer

The answer of For each item, choose all applicable cost...

Question 20

For each item, choose all applicable cost labels. Use the codes below in your answer. More than one code may be applicable.
-Sales salaries

Accepted Answer

Sales salaries are considered period costs because they are not directly tied to the production process and are expensed in the period they are incurred.

Quiz 15: Introduction to Management Accounting

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories: -Property rates on the factory land

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories: -Metal used in manufacturing

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories: -Cabinet maker's wages

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories: -Nails and glue used in production

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories: -Factory supervisors' salaries

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories: -Depreciation on factory machines

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories: -Factory electricity and power

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories: -Carpeting for the vehicles

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories: -Property maintenance on the factory building

Match the list of costs and expenses incurred in the factory by Eco Systems Ltd, a manufacturer of eco-friendly, hybrid vehicles with the following categories: -Insurance on factory equipment

For each item, choose all applicable cost labels. Use the codes below in your answer. More than one code may be applicable. -Advertising

For each item, choose all applicable cost labels. Use the codes below in your answer. More than one code may be applicable. -Direct materials used

For each item, choose all applicable cost labels. Use the codes below in your answer. More than one code may be applicable. -Sales salaries