Question 1

Which of the following describes the Planning function within the management cycle?

Accepted Answer

A)  Setting short and long-term objectives 
B)  Comparing actual to budgeted results and taking corrective action 
C)  Taking actions to implement the plan 
D)  Arranging the necessary resources to carry out the plan 
A)  Setting short and long-term objectives 
B)  Comparing actual to budgeted results and taking corrective action 
C)  Taking actions to implement the plan 
D)  Arranging the necessary resources to carry out the plan

Question 2

Which of the following functions of management involves providing motivation to achieve results?

Accepted Answer

A)  Planning 
B)  Implementing 
C)  Reviewing 
D)  Control 
A)  Planning 
B)  Implementing 
C)  Reviewing 
D)  Control

Question 3

An out-of-pocket cost involves which of the following?

Accepted Answer

A)  Choosing to do one thing instead of another. 
B)  Tracing the cost directly to a cost object. 
C)  An actual outlay of cash. 
D)  Determining how the cost changes with a change in activity level. 
A)  Choosing to do one thing instead of another. 
B)  Tracing the cost directly to a cost object. 
C)  An actual outlay of cash. 
D)  Determining how the cost changes with a change in activity level.

Question 4

Robin Company has the following balances for the current month:   What are Robin's conversion costs?

Accepted Answer

A)  $70,400 
B)  $60,800 
C)  $91,200 
D)  $57,600 
A)  $70,400 
B)  $60,800 
C)  $91,200 
D)  $57,600

Question 5

Which of the following functions of management involves comparing actual results with budgeted results?

Accepted Answer

A)  Planning 
B)  Implementing 
C)  Reviewing 
D)  Control 
A)  Planning 
B)  Implementing 
C)  Reviewing 
D)  Control

Question 6

Imagine purchasing a cup of coffee. Which of the following statements correctly classifies the direct, indirect, variable, and fixed costs associated with that purchase, assuming the cost object is the cup of coffee?

Accepted Answer

A)  The cost of the cup and the lid is an indirect cost because it can be readily traced to the cost object. 
B)  The shop supervisor's salary is a direct cost because it cannot be readily and feasibly traced to the cost object. 
C)  The volume of coffee beans purchased is a variable cost because it changes along with the changing volume of cups of coffee sold. 
D)  The shop's monthly water bill is a fixed cost because it changes along with the changing volume of sales. 
A)  The cost of the cup and the lid is an indirect cost because it can be readily traced to the cost object. 
B)  The shop supervisor's salary is a direct cost because it cannot be readily and feasibly traced to the cost object. 
C)  The volume of coffee beans purchased is a variable cost because it changes along with the changing volume of cups of coffee sold. 
D)  The shop's monthly water bill is a fixed cost because it changes along with the changing volume of sales.

Question 7

Mariposa Manufacturing builds custom wooden cabinets. Mariposa Manufacturing has reported the following costs for the previous year. Assume no production inventories.   Compute the following:
a. Direct material costs
b. Direct labor cost
c. Manufacturing overhead
d. Total manufacturing cost
e. Prime cost
f. Conversion cost
g. Total period cost

Accepted Answer

a. Direct materials cost: $151,000 = $34

Question 8

Which of the following is a requirement under the Sarbanes-Oxley Act?

Accepted Answer

A)  Financial statements must be audited by a Big Four accounting firm. 
B)  Management must issue a report that indicates whether the financial statements are free of error. 
C)  Management must conduct a review of the company's internal control system. 
D)  Background checks must be performed on all employees. 
A)  Financial statements must be audited by a Big Four accounting firm. 
B)  Management must issue a report that indicates whether the financial statements are free of error. 
C)  Management must conduct a review of the company's internal control system. 
D)  Background checks must be performed on all employees.

Question 9

Which of the following functions of management involves arranging the necessary resources to carry out the plan?

Accepted Answer

A)  Planning 
B)  Implementing 
C)  Reviewing 
D)  Control 
A)  Planning 
B)  Implementing 
C)  Reviewing 
D)  Control

Question 10

The control function is:

Accepted Answer

A)  Comparing actual with budgeted results and taking corrective action when needed. 
B)  Arranging of the necessary resources to carry out the plan. 
C)  The directing, leading, and motivating of those necessary to carry out the plan. 
D)  Drafting the goals and strategies to achieve long-term results. 
A)  Comparing actual with budgeted results and taking corrective action when needed. 
B)  Arranging of the necessary resources to carry out the plan. 
C)  The directing, leading, and motivating of those necessary to carry out the plan. 
D)  Drafting the goals and strategies to achieve long-term results.

Question 11

An actual outlay of cash is a(n):

Accepted Answer

A)  out-of-pocket cost. 
B)  opportunity cost. 
C)  direct cost. 
D)  cost object. 
A)  out-of-pocket cost. 
B)  opportunity cost. 
C)  direct cost. 
D)  cost object.

Question 12

Which of the following is the correct sequencing of the functions within the managerial cycle?

Accepted Answer

A)  Plan - Control - Implement 
B)  Review - Plan - Implement 
C)  Plan - Implement - Control 
D)  Review - Control - Plan 
A)  Plan - Control - Implement 
B)  Review - Plan - Implement 
C)  Plan - Implement - Control 
D)  Review - Control - Plan

Question 13

Which of the following does not describe the Implementing function within the management cycle?

Accepted Answer

A)  Leading, directing, and motivating others to achieve the plan's goals 
B)  Arranging the necessary resources to carry out the plan 
C)  Taking actions to implement the plan 
D)  Setting short- and long-term objectives 
A)  Leading, directing, and motivating others to achieve the plan's goals 
B)  Arranging the necessary resources to carry out the plan 
C)  Taking actions to implement the plan 
D)  Setting short- and long-term objectives

Question 14

Which of the following is an example of a variable cost for a manufacturing firm?

Accepted Answer

A)  The cost of rent on the factory. 
B)  The cost of factory supervision. 
C)  The cost of raw materials. 
D)  The cost of depreciation on equipment. 
A)  The cost of rent on the factory. 
B)  The cost of factory supervision. 
C)  The cost of raw materials. 
D)  The cost of depreciation on equipment.

Question 15

A cost that will occur in the future and differs between various alternatives under consideration is a relevant cost

Accepted Answer

A) True 
 B)False

Question 16

Product costs are:

Accepted Answer

A)  expensed on the income statement when incurred. 
B)  treated as an asset and depreciated. 
C)  inventoried until the units are sold. 
D)  considered current liabilities until paiD.
Product costs are counted as part of the inventory until the product is solD. 
A)  expensed on the income statement when incurred. 
B)  treated as an asset and depreciated. 
C)  inventoried until the units are sold. 
D)  considered current liabilities until paiD.
Product costs are counted as part of the inventory until the product is solD.

Question 17

All manufacturing costs are inventoriable costs

Accepted Answer

A) True 
 B)False

Question 18

For each of the following independent cases, compute the missing values:

Accepted Answer

The answer of For each of the following independent cases,...

Question 19

An out-of-pocket costs is:

Accepted Answer

A)  an actual outlay of cash. 
B)  the cost of not doing something. 
C)  a deferred cost. 
D)  a budgeted estimate. 
A)  an actual outlay of cash. 
B)  the cost of not doing something. 
C)  a deferred cost. 
D)  a budgeted estimate.

Question 20

Which of the following statements is correct?

Accepted Answer

A)  A direct cost can be readily traced to a cost object while an indirect cost is traced only to manufacturing costs. 
B)  An indirect cost can be readily traced to a cost object while a direct cost is traced only to manufacturing costs. 
C)  A direct cost can be traced to a specific cost object, while an indirect cost cannot. 
D)  An indirect cost can be traced to a specific cost object, while a direct cost cannot. 
A)  A direct cost can be readily traced to a cost object while an indirect cost is traced only to manufacturing costs. 
B)  An indirect cost can be readily traced to a cost object while a direct cost is traced only to manufacturing costs. 
C)  A direct cost can be traced to a specific cost object, while an indirect cost cannot. 
D)  An indirect cost can be traced to a specific cost object, while a direct cost cannot.

Which of the following describes the Planning function within the management cycle?

Which of the following functions of management involves providing motivation to achieve results?

An out-of-pocket cost involves which of the following?

Robin Company has the following balances for the current month: What are Robin's conversion costs?

Which of the following functions of management involves comparing actual results with budgeted results?

Imagine purchasing a cup of coffee. Which of the following statements correctly classifies the direct, indirect, variable, and fixed costs associated with that purchase, assuming the cost object is the cup of coffee?

Which of the following is a requirement under the Sarbanes-Oxley Act?

Which of the following functions of management involves arranging the necessary resources to carry out the plan?

The control function is:

An actual outlay of cash is a(n):

Which of the following is the correct sequencing of the functions within the managerial cycle?

Which of the following does not describe the Implementing function within the management cycle?

Which of the following is an example of a variable cost for a manufacturing firm?

A cost that will occur in the future and differs between various alternatives under consideration is a relevant cost

Product costs are:

All manufacturing costs are inventoriable costs

For each of the following independent cases, compute the missing values:

An out-of-pocket costs is:

Which of the following statements is correct?

Job-Order Costing

Process Costing

Activity-Based Cost Management

Cost Behavior and Estimation

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgeting and Planning

Standard Costing and Variances

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Financial Statement Analysis

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Exam 1: Introduction to Managerial Accounting

Which of the following describes the Planning function within the management cycle?

Which of the following functions of management involves providing motivation to achieve results?

An out-of-pocket cost involves which of the following?

Robin Company has the following balances for the current month: What are Robin's conversion costs?

Which of the following functions of management involves comparing actual results with budgeted results?

Imagine purchasing a cup of coffee. Which of the following statements correctly classifies the direct, indirect, variable, and fixed costs associated with that purchase, assuming the cost object is the cup of coffee?

Which of the following is a requirement under the Sarbanes-Oxley Act?

Which of the following functions of management involves arranging the necessary resources to carry out the plan?

The control function is:

An actual outlay of cash is a(n):

Which of the following is the correct sequencing of the functions within the managerial cycle?

Which of the following does not describe the Implementing function within the management cycle?

Which of the following is an example of a variable cost for a manufacturing firm?

A cost that will occur in the future and differs between various alternatives under consideration is a relevant cost

Product costs are:

All manufacturing costs are inventoriable costs

For each of the following independent cases, compute the missing values:

An out-of-pocket costs is:

Which of the following statements is correct?

Job-Order Costing

Process Costing

Activity-Based Cost Management

Cost Behavior and Estimation

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgeting and Planning

Standard Costing and Variances

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Financial Statement Analysis

Filters