Chapter 1 1. Managerial Accounting provides information which is primarily useful for A) Helping banks know whether to loan money to a company B) Setting a company's stock price on the stock exchanges C) Determining how much a company owes to the IRS in taxes D) Helping managers plan, manage, and make strategic decisions regarding the growth and profitability of the company 2. Which of the following is an example of a manufacturing firm? A) Walmart B) Caleb's Carpet Cleaning Company C) General Motors D) Starbucks 3. All of the following are examples of a service firms except: A) Professional taxi services B) Online retailers C) Public accounting firms D) Lawn car companies All of the following are benefits of outsourcing except A) Significantly faster service and higher quality of products and services B) Ability to provide services from anywhere in the world C) Companies can focus more efforts on core business activities D) Not having to worry about under-utilized, undertrained staff 4. Which of the following is not a role that can be filled by someone with an accounting degree? A) Treasurer B) Internal auditor C) Budget analyst D) CFO E) All of the above are roles that are filled by accountants 5. Chapter 2 6. Prescott Manufacturing reported the following information at year-end: Beginning Raw Materials Inventory Ending Raw Materials inventory: Beginning Work in Process: Ending Work in Process Beginning Finished Goods Inventory Ending Finished Goods Inventory Materials Purchased: Indirect Materials Used: Direct Labor Wages Indirect Labor Wages: Production Equipment Depreciation Equipment Maintenance: Factory Rent Office Supplies Used: Selling and Administrative Expenses: $6,000 $5,000 $25,000 $30,000 $10,000 $12,000 $120,000 $35,000 $400,000 $620,000 $50,000 $25,000 $75,000 $20,000 $3,563,000 What was Prescott's Cost of Goods Manufactured for the period? A. $1,300,000 B. $1,286,000 C. $2,500,000 D. $1,375,000 7. Lean'N'Mean Manufacturing uses just-in-time inventory techniques to reduce their carrying costs Despite having a low level of working capital, they experience significant sales and production levels. Lean'N'Mean reported the following information at year-end: $500 Beginning Raw Materials Inventory Ending Raw Materials inventory Beginning Work in Process: Ending Work in Process: Beginning Finished Goods Inventory: Ending Finished Goods Inventory Materials Purchased Indirect Materials Used: Direct Labor Wages: Indirect Labor Wages Production Equipment Depreciation: Equipment Maintenance: Factory Rent Office Supplies Used: Selling and Administrative Expenses: $600 $2,000 $2,100 $1,200 $900 $65,000 $2,000 $72,000 $100,000 $5,000 $3,000 $5,000 $200 $328,000 What was Lean'N'Mean's Cost of Goods Sold for the period? A. $250,100 B. $325,000 C. $276,000 D. $215,000