True or False Flashcards
(77 cards)
Managerial Accounting involves gathering accounting data primarily for external users.
False
Managerial Accounting emphasizes relevance, timeliness, precision, and verifiability
False
Managerial Accounting adds substantial value only to accounting majors because it provides them with effective insights in planning, controlling, and making good business decisions regarding business operations.
False
Business Ethics is an important concept that must be understood and used in both the US and worldwide economy at all times (i.e. competence, integrity, credibility).
True
Leadership primarily focuses on overseeing day-to-day business operations while management is primarily about positively influencing the behavior (i.e. business performance) of others.
False
The salary of a security guard working in the manufacturing plant is considered a manufacturing overhead cost.
True
A manufacturing company president’s salary is an example of indirect labor cost in manufacturing overhead.
False
Prime Costs are Product Costs.
True
Manufacturing overhead costs are period costs.
False
Conversion costs are Period costs.
False
Non-manufacturing costs are period costs.
True
Variable costs per unit increases or decreases as activity increases or decreases.
False
Fixed costs per unit decreases as volume increases.
True
In the mixed cost formula Y=a+bx, b= the total fixed manufacturing costs.
False
The traditional format income statement is primarily used for internal management decision making.
False
Opportunity costs address the benefit given up as a result of incurring a given cost.
True
Costs that are different between two or more alternatives are referred to as sunk costs.
False
Job order costing is used in companies that manufacture products to customer specifications.
True
Under Job Order Costing, the job cost sheet is used to capture DM, DL, MO, and Total cost per unit for each job.
True
Under Job Order Costing, Manufacturing Overhead costs are recorded on the job cost sheet based on actual costs.
False
Under Job Order Costing, the predetermined Overhead rate is based on total estimated manufacturing overhead costs and total actual allocation base.
False
Under Job Order Costing, Under-applied MO occurs when actual MO is greater than applied MO.
True
Under Job Order Costing, Over-applied MO results in an overstatement of COGS and an overstatement of Net profit.
False
Under Job Order Costing, the adjustment correction to an overapplied MO results in a decrease in COGS and an increase in Net Profit.
True