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51 factory overhead includes selling and administrative expenses because they are in 4299506


51. Factory overhead includes selling and administrative expenses because they are indirect costs of a product. 

52. Prime costs consist of direct labor and factory overhead. 

53. The manufacturing statement is also known as the schedule of manufacturing activities or the schedule of cost of goods manufactured. 

54. The manufacturing statement must be prepared monthly as it is a required general-purpose financial statement. 

Multiple Choice Questions

55. Managerial accounting information: 

A. Is used mainly by external users.

B. Involves gathering information about costs for planning and control decisions.

C. Is generally the only accounting information available to managers.

D. Can be used for control purposes but not for planning purposes.

E. Has little to do with controlling costs.

56. Managerial accounting is different from financial accounting in that 

A. Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on subdivisions of the organization.

B. Managerial accounting never includes nonmonetary information.

C. Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.

D. Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors.

E. Managerial accounting is mainly used to set stock prices.

57. Flexibility of practice when applied to managerial accounting means that 

A. The information must be presented in electronic format so that it is easily changed.

B. Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for.

C. The managerial accountants need to be on call twenty-four hours a day.

D. The design of a company's managerial accounting system largely depends on the nature of the business and the arrangement of the internal operations of the company.

E. Managers must be flexible with information provided in varying forms and using inconsistent measures.

58. Which of the following items represents a difference between financial and managerial accounting? 

A. Users of the information.

B. Flexibility of practices.

C. Timeliness and time dimension of the information reported.

D. Nature of the information.

E. All of these.

59. Which of the following items are management concepts that were created to improve companies' performances? 

A. Just-in-time manufacturing.

B. Customer orientation.

C. Total quality management.

D. Continuous improvement.

E. All of these.

60. The Malcolm Baldridge Award was established by 

A. The United Nations.

B. The U.S. Chamber of Commerce.

C. The Malcolm Baldridge Foundation.

D. The U.S. Congress.

E. The SEC.


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