Question

Chapter 1 - A Test True/False (3 Points) 1. Managerial accounting focuses on providing historical financial information to outside shareholders and creditors. 2. A process costing system is used by companies that produce similar or identical units of product including 3. The journal entry for recording timesheet submissions by employees working on various jobs will include a debit to the Direct Labor account. 4. A company that uses process costing may use several Work-in-Process Inventory accounts 3. Both process costing and job costing typically include three product costs direct materials, direct labor and manufacturing overhead. 6. When using a process costing system, product costs are tracked by department rather than by job. 7. When using process costing, only one company wide Work-in-Process account is allowed for tracking product costs. 8. The treasurer is typically in charge of all finance and accounting functions within an organization 9. When units are transferred from one production process to another, the journal entry will include a debit and a credit to two different Work-in-Process Inventory accounts. 10. Product costs are always expensed in the period when they are incurred. 11. In a process costing system, the department where production begins will never have transferred-in costs from another department. 12. The control function is implemented to assess an organization's plan and may lead to recommendations for the future. 13. Underapplied manufacturing overhead results in a debit balance in the Manufacturing Overhead account.

true or false

Answer 1

g focus to the is to managerial False & Managerial provide data level of Accounting's primary and information the organisation. 2) False . Actually Batch costings is used for identical or similar unit manufacturing Company, ito not the cave in process casting 3) Tunc Direct the a Labour total result Ale shall expenses of use be that of debited ariser Labour showingo at 4) True. in if item This is with respect to the difference the iteme manufactured by company, a un identical units are manufactured, each shall have its own WIP - Alcount. 5) True: are the normal These 3 Costs. allocated a True As the authore the expenses product cost is generated possed from one -dept - to- allocated on all of by that Department 7 True when is used using to procce Track colding , WIP Ale product Cast 8) false. Tresure role may depend on the size of organisation in many comes he . May be responsible only for inflow & outflow of money, but in small organisatione he may be responsible for accounting & Finance as well.. a) True And may of these be the 2 different WIP enmarked on the department Accounts Basis 10) True: expenses concept. according They are ale rual to 19 True Since the 1st Departments transfers the te to 2nd and it never returns to the 1 t Department, so it shall not have transfered in coets. 12) false ir is to Mujor objective to control the prepare best for of present the control function condition, future. 13) True :