Question 1

Which of the following is not a characteristic of managerial accounting?

Accepted Answer

A) Information is used by external parties. 
B) Information is subjective,relevant,and future-oriented. 
C) Reports are prepared as needed. 
D) Information is reported at the decision making level. 
A) Information is used by external parties. 
B) Information is subjective,relevant,and future-oriented. 
C) Reports are prepared as needed. 
D) Information is reported at the decision making level. A

Question 2

A cost is $50,000 when 25,000 units are produced,and $100,000 when 50,000 units are produced.This is an example of a(n):

Accepted Answer

A) fixed cost. 
B) direct cost. 
C) variable cost. 
D) indirect cost. 
A) fixed cost. 
B) direct cost. 
C) variable cost. 
D) indirect cost. C

Question 3

What is the primary goal of accounting?

Accepted Answer

A) To set long-term goals and objectives. 
B) To arrange for the necessary resources to achieve a plan. 
C) To provide information for decision making. 
D) To motivate others to work towards a plan's success. 
A) To set long-term goals and objectives. 
B) To arrange for the necessary resources to achieve a plan. 
C) To provide information for decision making. 
D) To motivate others to work towards a plan's success. C

Question 4

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 5

Which of the following is true about product and period costs?

Accepted Answer

A) Product costs are usually manufacturing costs,and period costs are usually nonmanufacturing costs. 
B) Product costs are usually nonmanufacturing costs,and period costs are usually manufacturing costs. 
C) Both product and period costs are usually manufacturing costs. 
D) Both product and period costs are usually nonmanufacturing costs. 
A) Product costs are usually manufacturing costs,and period costs are usually nonmanufacturing costs. 
B) Product costs are usually nonmanufacturing costs,and period costs are usually manufacturing costs. 
C) Both product and period costs are usually manufacturing costs. 
D) Both product and period costs are usually nonmanufacturing costs.

Question 6

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 7

Many organizations are building sustainable business practices into their strategies by issuing:

Accepted Answer

A) corporate social responsibility reports. 
B) reports on internal controls. 
C) profit and loss statements that reflect people and planet costs. 
D) reports from the board of directors on sustainability. 
A) corporate social responsibility reports. 
B) reports on internal controls. 
C) profit and loss statements that reflect people and planet costs. 
D) reports from the board of directors on sustainability.

Question 8

Of the following groups,which is the primary user of managerial accounting information?

Accepted Answer

A) Investors 
B) Creditors 
C) Regulators 
D) Managers 
A) Investors 
B) Creditors 
C) Regulators 
D) Managers

Question 9

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 10

Which of the following types of organizations purchases raw materials from suppliers and uses them to create a finished product?

Accepted Answer

A) Manufacturing firms 
B) Merchandising companies 
C) Service companies 
D) Retailers 
A) Manufacturing firms 
B) Merchandising companies 
C) Service companies 
D) Retailers

Question 11

Conversion costs can be defined as:

Accepted Answer

A) manufacturing costs plus non-manufacturing costs. 
B) direct labor plus direct materials. 
C) variable costs plus fixed costs. 
D) manufacturing costs minus direct materials. 
A) manufacturing costs plus non-manufacturing costs. 
B) direct labor plus direct materials. 
C) variable costs plus fixed costs. 
D) manufacturing costs minus direct materials.

Question 12

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 13

A relevant cost is a cost that:

Accepted Answer

A) has the potential to influence a decision. 
B) changes in direct proportion to changes in activity level. 
C) can be traced to a specific cost object. 
D) is used for control purposes. 
A) has the potential to influence a decision. 
B) changes in direct proportion to changes in activity level. 
C) can be traced to a specific cost object. 
D) is used for control purposes.

Question 14

Salon de Beauty,a local hair salon,incurred the following costs last month.(Hint: Treat Salon utilities as Variable cost)
   Calculate each of the following,where the cost object is customers served:
a.Total variable costs
b.Total fixed costs
c.Total direct costs
d.Total indirect costs

Accepted Answer

a.Total variable costs: $4,180 = $890 +

Question 15

Managers of small,private corporations use managerial accounting information whereas managers of large,public corporations use financial accounting information.

Accepted Answer

A) True 
 B)False

Question 16

Stetson Manufacturing builds custom wooden cabinets.Classify the following items as a)what category of product costs and b)whether the item is a prime or conversion cost.

Accepted Answer

@#IMG-DLM& Direct materials are the traceable mate

Question 17

Pretend you are a junior managerial accountant.Your supervisor has no knowledge of sustainability accounting.All of the following statements would be convincing arguments to advocate for the importance of sustainability accounting,except one.Which one?

Accepted Answer

A) Sustainability accounting reflects the changing nature of accountability. 
B) Companies are only accountable to shareholders and shareholders care about sustainability. 
C) Companies are accountable to the world at large,not simply to shareholders. 
D) Sustainability accounting does not replace the emphasis on financial results;rather it complements financial strength in building a strong company for the future. 
A) Sustainability accounting reflects the changing nature of accountability. 
B) Companies are only accountable to shareholders and shareholders care about sustainability. 
C) Companies are accountable to the world at large,not simply to shareholders. 
D) Sustainability accounting does not replace the emphasis on financial results;rather it complements financial strength in building a strong company for the future.

Question 18

Which of the following functions of management involves arranging for 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 19

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

Accepted Answer

@#IMG-DLM& Prime costs are the total of direct mat

Question 20

Which of the following is not true about how the Sarbanes-Oxley Act emphasizes the importance of the character of managers and employees?

Accepted Answer

A) It requires that ethics be embedded in the organizational culture. 
B) It requires that audit committees establish anonymous tip lines. 
C) It provides protection for whistle-blowers. 
D) It requires that public companies adopt a code of ethics for senior financial officers. 
A) It requires that ethics be embedded in the organizational culture. 
B) It requires that audit committees establish anonymous tip lines. 
C) It provides protection for whistle-blowers. 
D) It requires that public companies adopt a code of ethics for senior financial officers.

Which of the following is not a characteristic of managerial accounting?

A cost is $50,000 when 25,000 units are produced,and $100,000 when 50,000 units are produced.This is an example of a(n):

What is the primary goal of accounting?

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

Which of the following is true about product and period costs?

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

Many organizations are building sustainable business practices into their strategies by issuing:

Of the following groups,which is the primary user of managerial accounting information?

An out-of-pocket costs is:

Which of the following types of organizations purchases raw materials from suppliers and uses them to create a finished product?

Conversion costs can be defined as:

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

A relevant cost is a cost that:

Salon de Beauty,a local hair salon,incurred the following costs last month.(Hint: Treat Salon utilities as Variable cost) Calculate each of the following,where the cost object is customers served: a.Total variable costs b.Total fixed costs c.Total direct costs d.Total indirect costs

Managers of small,private corporations use managerial accounting information whereas managers of large,public corporations use financial accounting information.

Stetson Manufacturing builds custom wooden cabinets.Classify the following items as a)what category of product costs and b)whether the item is a prime or conversion cost.

Pretend you are a junior managerial accountant.Your supervisor has no knowledge of sustainability accounting.All of the following statements would be convincing arguments to advocate for the importance of sustainability accounting,except one.Which one?

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

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

Which of the following is not true about how the Sarbanes-Oxley Act emphasizes the importance of the character of managers and employees?

Job Order Costing

Process Costing

Activity-Based Costing and Cost Management

Cost Behavior

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Standard Costing and Variance Analysis

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 1: Introduction to Managerial Accounting

Which of the following is not a characteristic of managerial accounting?

A cost is $50,000 when 25,000 units are produced,and $100,000 when 50,000 units are produced.This is an example of a(n):

What is the primary goal of accounting?

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

Which of the following is true about product and period costs?

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

Many organizations are building sustainable business practices into their strategies by issuing:

Of the following groups,which is the primary user of managerial accounting information?

An out-of-pocket costs is:

Which of the following types of organizations purchases raw materials from suppliers and uses them to create a finished product?

Conversion costs can be defined as:

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

A relevant cost is a cost that:

Salon de Beauty,a local hair salon,incurred the following costs last month.(Hint: Treat Salon utilities as Variable cost) Calculate each of the following,where the cost object is customers served: a.Total variable costs b.Total fixed costs c.Total direct costs d.Total indirect costs

Managers of small,private corporations use managerial accounting information whereas managers of large,public corporations use financial accounting information.

Stetson Manufacturing builds custom wooden cabinets.Classify the following items as a)what category of product costs and b)whether the item is a prime or conversion cost.

Pretend you are a junior managerial accountant.Your supervisor has no knowledge of sustainability accounting.All of the following statements would be convincing arguments to advocate for the importance of sustainability accounting,except one.Which one?

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

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

Which of the following is not true about how the Sarbanes-Oxley Act emphasizes the importance of the character of managers and employees?

Job Order Costing

Process Costing

Activity-Based Costing and Cost Management

Cost Behavior

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Standard Costing and Variance Analysis

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters