Question 1

Which of the following might you find in a job description for a managerial accountant in a manufacturing company?

Accepted Answer

A)  The Managerial Accountant will conduct internal analysis on the health of the company, suggest variances to emphasize in evaluations, and review unusual results. 
B)  The Managerial Accountant will be the primary contact in dealing with the external audit team. 
C)  The Managerial Accountant will be responsible for preparing and presenting quarterly financial statements to management. 
D)  The ideal candidate for this position will have a strong knowledge of financial accounting to provide advice on generally accepted accounting principles to the CFO. 
A)  The Managerial Accountant will conduct internal analysis on the health of the company, suggest variances to emphasize in evaluations, and review unusual results. 
B)  The Managerial Accountant will be the primary contact in dealing with the external audit team. 
C)  The Managerial Accountant will be responsible for preparing and presenting quarterly financial statements to management. 
D)  The ideal candidate for this position will have a strong knowledge of financial accounting to provide advice on generally accepted accounting principles to the CFO.

Question 2

Parkside Rentals, a firm that rents tuxedos for special events, incurred costs for the following items.   Calculate each of the following, where the cost object is tuxedo rentals:
a. Total variable costs
b. Total fixed costs
c. Total direct costs
d. Total indirect costs

Accepted Answer

a. Total variable costs: $46,000 = $7,00

Question 3

Adobe Music Company, which manufactures wooden and metal xylophones, incurred costs for the following items.   Calculate each of the following, where the cost object is the xylophones manufactured by the company:
a. Total variable costs
b. Total fixed costs
c. Total direct costs
d. Total indirect costs

Accepted Answer

a. Total variable costs: $70,300 = $21,0

Question 4

Manufacturing costs are generally classified into which of the following categories?

Accepted Answer

A)  Relevant costs and irrelevant costs 
B)  Direct materials, direct labor, and manufacturing overhead 
C)  Prime costs and conversion costs 
D)  Conversion costs, marketing costs, and administrative costs 
A)  Relevant costs and irrelevant costs 
B)  Direct materials, direct labor, and manufacturing overhead 
C)  Prime costs and conversion costs 
D)  Conversion costs, marketing costs, and administrative costs

Question 5

GAAP reporting rules require that all manufacturing costs be treated as:

Accepted Answer

A)  period costs. 
B)  product costs. 
C)  value-added costs. 
D)  relevant costs. 
A)  period costs. 
B)  product costs. 
C)  value-added costs. 
D)  relevant costs.

Question 6

A cost that has already been incurred is called a(n) _______________ cost.

Accepted Answer

A)  indirect 
B)  sunk 
C)  relevant 
D)  opportunity 
A)  indirect 
B)  sunk 
C)  relevant 
D)  opportunity

Question 7

During the last fiscal year, XYZ organization implemented managerial accounting to allocate program costs to its soup kitchen. The kitchen's manager is reviewing actual results from the prior month to compare the outcomes with the organization's objectives. Which function of the Plan-Implement-Control cycle is she conducting?

Accepted Answer

A)  Plan 
B)  Implement 
C)  Control 
D)  Strategize 
A)  Plan 
B)  Implement 
C)  Control 
D)  Strategize

Question 8

What determines the difference between a variable and a fixed cost?

Accepted Answer

A)  Whether the total cost changes when activity levels change. 
B)  Whether the total cost is relevant to a particular decision. 
C)  Whether the total cost can be traced to a specific cost object. 
D)  Whether the total cost is related to manufacturing or nonmanufacturing activities. 
A)  Whether the total cost changes when activity levels change. 
B)  Whether the total cost is relevant to a particular decision. 
C)  Whether the total cost can be traced to a specific cost object. 
D)  Whether the total cost is related to manufacturing or nonmanufacturing activities.

Question 9

The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting reporting environment: ethics, fraud, and managers

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is correct about sustainability accounting?

Accepted Answer

A)  Sustainability accounting has been in existence since 1592. 
B)  Sustainability accounting tracks a company's "green" score. 
C)  Sustainability accounting aims to provide managers a broad set of information to meet the needs of multiple stakeholders. 
D)  Sustainability accounting is a subset of GAAP applied only to socially responsible companies. 
A)  Sustainability accounting has been in existence since 1592. 
B)  Sustainability accounting tracks a company's "green" score. 
C)  Sustainability accounting aims to provide managers a broad set of information to meet the needs of multiple stakeholders. 
D)  Sustainability accounting is a subset of GAAP applied only to socially responsible companies.

Question 11

Alameda Manufacturing manufactures a variety of wooden picture frames using recycled wood from old barns. Alameda 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 material costs: $208,000 = $86

Which of the following might you find in a job description for a managerial accountant in a manufacturing company?

Parkside Rentals, a firm that rents tuxedos for special events, incurred costs for the following items. Calculate each of the following, where the cost object is tuxedo rentals: a. Total variable costs b. Total fixed costs c. Total direct costs d. Total indirect costs

Manufacturing costs are generally classified into which of the following categories?

GAAP reporting rules require that all manufacturing costs be treated as:

A cost that has already been incurred is called a(n) _______________ cost.

What determines the difference between a variable and a fixed cost?

The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting reporting environment: ethics, fraud, and managers

Which of the following statements is correct about sustainability accounting?

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 might you find in a job description for a managerial accountant in a manufacturing company?

Parkside Rentals, a firm that rents tuxedos for special events, incurred costs for the following items. Calculate each of the following, where the cost object is tuxedo rentals: a. Total variable costs b. Total fixed costs c. Total direct costs d. Total indirect costs

Manufacturing costs are generally classified into which of the following categories?

GAAP reporting rules require that all manufacturing costs be treated as:

A cost that has already been incurred is called a(n) _______________ cost.

What determines the difference between a variable and a fixed cost?

The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting reporting environment: ethics, fraud, and managers

Which of the following statements is correct about sustainability accounting?

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