Question 1

The sequence of activities through which an organization provides products to its customers is called a supply chain.

Accepted Answer

A) True 
 B)False

Question 2

Upstream costs are classified as product costs and downstream costs are classified as period costs for financial reporting purposes.

Accepted Answer

A) True 
 B)False

Question 3

Because management accountants prepare and analyze financial information used by company decision-makers,they are considered to be at the forefront of corporate governance.

Accepted Answer

A) True 
 B)False

Question 4

Transportation costs incurred to transfer products to customers are downstream costs.

Accepted Answer

A) True 
 B)False

Question 5

Product costs include materials,labor,and selling and administrative costs.

Accepted Answer

A) True 
 B)False

Question 6

Period costs are initially recorded in asset accounts and are later expensed in the period when the related units are sold.

Accepted Answer

A) True 
 B)False

Question 7

Misclassifying a product cost as a period cost will usually cause the income statement to be incorrect,but the balance sheet will not be affected.

Accepted Answer

A) True 
 B)False

Question 8

Ashley Bradshaw is the manager of one department in a large store.In this capacity,which of the following kinds of information would she be interested in?

Accepted Answer

A)  Economic data 
B)  Financial data 
C)  Nonfinancial data 
D)  Both financial data and nonfinancial data 
A)  Economic data 
B)  Financial data 
C)  Nonfinancial data 
D)  Both financial data and nonfinancial data

Question 9

Which of the following costs should not be recorded as an expense?

Accepted Answer

A)  Insurance on factory building 
B)  Sales commissions 
C)  Product shipping costs 
D)  Product advertising 
A)  Insurance on factory building 
B)  Sales commissions 
C)  Product shipping costs 
D)  Product advertising

Question 10

Average costs are used for internal decision-making,but actual costs are required for calculating cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 11

During its first year of operations,Silverman Company paid $14,000 for direct materials and $19,000 for production workers' wages.Lease payments and utilities on the production facilities amounted to $17,000 while general,selling,and administrative expenses totaled $8,000.The company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit. What is the amount of gross margin for the first year?

Accepted Answer

A)  $15,000 
B)  $24,000 
C)  $20,000 
D)  $45,000 
A)  $15,000 
B)  $24,000 
C)  $20,000 
D)  $45,000

Question 12

What is a value chain? And what relationship is there between the value chain and activity-based management?

Accepted Answer

Answers will vary
The value chain is the

Question 13

Which of the following statements concerning product costs versus general,selling,and administrative costs is

Accepted Answer

A)  Product costs incurred during the period will initially appear as inventory on the balance sheet. 
B)  General,selling,and administrative costs are always expensed when paid. 
C)  Product costs may be divided between the balance sheet and income statement. 
D)  General,selling,and administrative costs never appear as inventory on the balance sheet. 
A)  Product costs incurred during the period will initially appear as inventory on the balance sheet. 
B)  General,selling,and administrative costs are always expensed when paid. 
C)  Product costs may be divided between the balance sheet and income statement. 
D)  General,selling,and administrative costs never appear as inventory on the balance sheet.

Question 14

As a Certified Management Accountant,Steven is bound by the Institute of Management Accountant's Standards of Ethical Conduct.Describe the actions Steven should take when faced with an ethical dilemma at work.

Accepted Answer

Answers will vary
Steven should first id

Question 15

Select the incorrect statement regarding service companies.

Accepted Answer

A)  Because service companies do not carry inventory,it is impossible to determine product costs. 
B)  Because the products of service companies are consumed immediately,there is no finished goods inventory on their balance sheets. 
C)  Managers of service companies are expected to control costs,improve quality,and increase productivity just like managers of manufacturing companies. 
D)  Material,labor,and overhead costs of service companies are treated as period costs. 
A)  Because service companies do not carry inventory,it is impossible to determine product costs. 
B)  Because the products of service companies are consumed immediately,there is no finished goods inventory on their balance sheets. 
C)  Managers of service companies are expected to control costs,improve quality,and increase productivity just like managers of manufacturing companies. 
D)  Material,labor,and overhead costs of service companies are treated as period costs.

Question 16

The Sarbanes Oxley Act of 2002:

Accepted Answer

A)  prohibits CPA's from becoming managerial accountants. 
B)  created Generally Accepted Accounting principles (GAAP). 
C)  requires the CEO and CFO to defer responsibility for internal controls to external auditors. 
D)  requires management to establish a whistleblower policy. 
A)  prohibits CPA's from becoming managerial accountants. 
B)  created Generally Accepted Accounting principles (GAAP). 
C)  requires the CEO and CFO to defer responsibility for internal controls to external auditors. 
D)  requires management to establish a whistleblower policy.

Question 17

As a Certified Management Accountant,Derek is bound by the standards of ethical conduct issued by the Institute of Management Accountants.According to the standards,Derek has a responsibility to:

Accepted Answer

A)  inform subordinates that they should protect confidential information. 
B)  ensure that financial accounting records are maintained as per the governing guidelines. 
C)  monitor the activities of subordinates to assure that confidentiality is maintained. 
D)  inform subordinates that they should protect confidential information and monitor the activities of subordinates to assure that confidentiality is maintained. 
A)  inform subordinates that they should protect confidential information. 
B)  ensure that financial accounting records are maintained as per the governing guidelines. 
C)  monitor the activities of subordinates to assure that confidentiality is maintained. 
D)  inform subordinates that they should protect confidential information and monitor the activities of subordinates to assure that confidentiality is maintained.

Question 18

How do information needs of employees change moving up the organization chart?

Accepted Answer

Answers will vary
Lower-level employees

Question 19

Which of the following best represents a characteristic of managerial accounting?

Accepted Answer

A)  Information is historically based and reported annually. 
B)  Information is based on estimates and is bounded by relevance and timeliness. 
C)  Information is regulated by the Securities and Exchange Commission. 
D)  Information is characterized by reliability and objectivity. 
A)  Information is historically based and reported annually. 
B)  Information is based on estimates and is bounded by relevance and timeliness. 
C)  Information is regulated by the Securities and Exchange Commission. 
D)  Information is characterized by reliability and objectivity.

Question 20

Under the terms of the Sarbanes-Oxley Act,a company and its external auditor are required to report on the effectiveness of the company's system of internal controls.

Accepted Answer

A) True 
 B)False

The sequence of activities through which an organization provides products to its customers is called a supply chain.

Upstream costs are classified as product costs and downstream costs are classified as period costs for financial reporting purposes.

Because management accountants prepare and analyze financial information used by company decision-makers,they are considered to be at the forefront of corporate governance.

Transportation costs incurred to transfer products to customers are downstream costs.

Product costs include materials,labor,and selling and administrative costs.

Period costs are initially recorded in asset accounts and are later expensed in the period when the related units are sold.

Misclassifying a product cost as a period cost will usually cause the income statement to be incorrect,but the balance sheet will not be affected.

Ashley Bradshaw is the manager of one department in a large store.In this capacity,which of the following kinds of information would she be interested in?

Which of the following costs should not be recorded as an expense?

Average costs are used for internal decision-making,but actual costs are required for calculating cost of goods sold.

What is a value chain? And what relationship is there between the value chain and activity-based management?

Which of the following statements concerning product costs versus general,selling,and administrative costs is

As a Certified Management Accountant,Steven is bound by the Institute of Management Accountant's Standards of Ethical Conduct.Describe the actions Steven should take when faced with an ethical dilemma at work.

Select the incorrect statement regarding service companies.

The Sarbanes Oxley Act of 2002:

As a Certified Management Accountant,Derek is bound by the standards of ethical conduct issued by the Institute of Management Accountants.According to the standards,Derek has a responsibility to:

How do information needs of employees change moving up the organization chart?

Which of the following best represents a characteristic of managerial accounting?

Under the terms of the Sarbanes-Oxley Act,a company and its external auditor are required to report on the effectiveness of the company's system of internal controls.

Cost Behavior, Operating Leverage, and Profitability Analysis

Analysis of Cost,Volume,and Pricing to Increase Profitability

Cost Accumulation,Tracing,and Allocation

Cost Management in an Automated Business Environment: ABC, ABM, and TQM

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Responsibility Accounting

Planning for Capital Investments

Product Costing in Service and Manufacturing Entities

Job-Order, Process, and Hybrid Costing Systems

Financial Statement Analysis

Statement of Cash Flows

Filters

Exam 1: Management Accounting and Corporate Governance

The sequence of activities through which an organization provides products to its customers is called a supply chain.

Upstream costs are classified as product costs and downstream costs are classified as period costs for financial reporting purposes.

Because management accountants prepare and analyze financial information used by company decision-makers,they are considered to be at the forefront of corporate governance.

Transportation costs incurred to transfer products to customers are downstream costs.

Product costs include materials,labor,and selling and administrative costs.

Period costs are initially recorded in asset accounts and are later expensed in the period when the related units are sold.

Misclassifying a product cost as a period cost will usually cause the income statement to be incorrect,but the balance sheet will not be affected.

Ashley Bradshaw is the manager of one department in a large store.In this capacity,which of the following kinds of information would she be interested in?

Which of the following costs should not be recorded as an expense?

Average costs are used for internal decision-making,but actual costs are required for calculating cost of goods sold.

What is a value chain? And what relationship is there between the value chain and activity-based management?

Which of the following statements concerning product costs versus general,selling,and administrative costs is

As a Certified Management Accountant,Steven is bound by the Institute of Management Accountant's Standards of Ethical Conduct.Describe the actions Steven should take when faced with an ethical dilemma at work.

Select the incorrect statement regarding service companies.

The Sarbanes Oxley Act of 2002:

As a Certified Management Accountant,Derek is bound by the standards of ethical conduct issued by the Institute of Management Accountants.According to the standards,Derek has a responsibility to:

How do information needs of employees change moving up the organization chart?

Which of the following best represents a characteristic of managerial accounting?

Under the terms of the Sarbanes-Oxley Act,a company and its external auditor are required to report on the effectiveness of the company's system of internal controls.

Cost Behavior, Operating Leverage, and Profitability Analysis

Analysis of Cost,Volume,and Pricing to Increase Profitability

Cost Accumulation,Tracing,and Allocation

Cost Management in an Automated Business Environment: ABC, ABM, and TQM

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Responsibility Accounting

Planning for Capital Investments

Product Costing in Service and Manufacturing Entities

Job-Order, Process, and Hybrid Costing Systems

Financial Statement Analysis

Statement of Cash Flows

Filters