Financial and managerial accounting are similar in that both
12. Financial and managerial accounting are similar in that both
a. have the same primary users.
b. produce general-purpose reports.
c. have reports that are prepared quarterly and annually.
d. deal with the economic events of an enterprise.
13. The function that pertains to keeping the activities of the enterprise on track is
a. planning.
b. directing.
c. controlling.
d. accounting.
14. Property taxes on a manufacturing plant are an element of a
Product Cost Period Cost
a. Yes No
b. Yes Yes
c. No Yes
d. No No
15. For a manufacturing company, which of the following is an example of a period cost rather than a product cost?
a. Depreciation on factory equipment
b. Wages of salespersons
c. Wages of machine operators
d. Insurance on factory equipment
16. For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to
a. cost of goods purchased.
b. cost of goods manufactured.
c. net purchases.
d. total manufacturing costs.
17. If the cost of goods manufactured is less than the cost of goods sold, which of the following is correct?
a. Finished Goods Inventory has increased.
b. Work in Process Inventory has increased.
c. Finished Goods Inventory has decreased.
d. Work in Process Inventory has decreased.
