35. Which of the following is not a period cost?
A. Depreciation on factory equipment.
B. Depreciation on the retail store building.
C. Salesperson salaries.
D. Office supplies used.
36. The set of linked activities and resources needed to create and deliver a product or service to the customer is referred to as:
A. The budget.
B. The value chain.
C. The operating cycle.
D. The production process.
37. Which of the following is not a characteristic of managerial accounting?
A. Reports are used primarily by insiders rather than by persons outside of the business entity.
B. Its purpose is to assist managers in planning and controlling business operations.
C. Information must be developed in conformity with generally accepted accounting principles or with income tax regulations.
D. Information may be tailored to assist in specific managerial decisions.
38. In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a managerial accounting report is more likely to:
A. Be used by decision makers outside of the business organization.
B. Focus upon the operating results of the most recently completed accounting period.
C. View the entire organization as the reporting entity.
D. Be tailored to the specific needs of an individual decision maker.
39. In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a managerial accounting report is less likely to:
A. Focus upon the entire organization as the accounting entity.
B. Focus upon future accounting periods.
C. Make use of estimated amounts.
D. Be tailored to the specific needs of an individual decision maker.
40. Which of the following is not a product cost?
A. Property tax on the factory building.
B. Advertising.
C. Factory workers' salaries.
D. Indirect materials used in production.
41. The managerial functions of planning and controlling include all of the following activities except:
A. Setting objectives and goals for future performance.
B. Monitoring the extent to which planned objectives are being achieved.
C. Taking corrective action when actual results differ from the plan.
D. Directing the work of employees.
42. Which of the following is not one of the three types of inventories of a manufacturing company?
A. Raw materials inventory.
B. Work in process inventory.
C. Product inventory.
D. Finished goods inventory.
43. Manufacturing costs do not include:
A. Direct labor applicable to production within the period.
B. Selling expenses related to goods manufactured during the period.
C. Direct materials used during the period.
D. Manufacturing overhead charged to work in process during the period.
44. Which of the following should not be classified as a manufacturing cost?
A. Indirect factory labor costs, such as salaries of plant security guards.
B. Direct materials used in the production process.
C. Utility bills related to factory operations.
D. Commissions paid to salespeople.
