Question 1

What cost accounting system uses only unit-based activity drivers to assign costs to cost objects?

Accepted Answer

A) activity-based management 
B) activity-based costing system 
C) functional-based cost management system 
D) operational-based costing 
A) activity-based management 
B) activity-based costing system 
C) functional-based cost management system 
D) operational-based costing

Question 2

What does an accounting information system usually use as inputs?

Accepted Answer

A) financial statements 
B) data analyses 
C) performance reports 
D) economic events 
A) financial statements 
B) data analyses 
C) performance reports 
D) economic events

Question 3

Which of the following is NOT part of the financial accounting information system?

Accepted Answer

A) filing reports with the SEC 
B) reporting a large contingent liability to current and potential shareholders 
C) determining the future cash flows of a proposed flexible manufacturing system 
D) preparing GAAP financial statements 
A) filing reports with the SEC 
B) reporting a large contingent liability to current and potential shareholders 
C) determining the future cash flows of a proposed flexible manufacturing system 
D) preparing GAAP financial statements

Question 4

Which costs would be included in traditional product costs used for external reporting?

Accepted Answer

A) research and development costs 
B) production costs 
C) marketing costs 
D) selling costs 
A) research and development costs 
B) production costs 
C) marketing costs 
D) selling costs

Question 5

Which of the following costs is a period cost for a manufacturing company?

Accepted Answer

A) controller's salary 
B) wages of machine operators 
C) insurance on factory equipment 
D) fringe benefits for factory employees 
A) controller's salary 
B) wages of machine operators 
C) insurance on factory equipment 
D) fringe benefits for factory employees

Question 6

An appliance repair shop purchased materials costing $9,000 in May. The beginning inventory of material parts was $4,500 and the ending inventory of material parts was $4,000. Payments for direct labour for May totalled $27,000, secretarial costs were $2,000, and overhead of $5,000 was incurred. In addition, $5,000 was spent on advertising and $2,000 for the franchise name. Revenue for May was $50,000.
-Refer to the figure.What is the cost of services sold for May?

Accepted Answer

A) $40,500 
B) $41,500 
C) $43,500 
D) $50,500 
A) $40,500 
B) $41,500 
C) $43,500 
D) $50,500

Question 7

What is the term for the cost of units completed during a period?

Accepted Answer

A) cost of goods sold 
B) cost of goods manufactured 
C) current manufacturing costs 
D) finished goods inventory cost 
A) cost of goods sold 
B) cost of goods manufactured 
C) current manufacturing costs 
D) finished goods inventory cost

Question 8

The IMA has a program to recognize professional competence and educational attainment in the field of management accounting.What designation does the program lead to?

Accepted Answer

A) Certified Management Accountant 
B) controller 
C) Chartered Accountant 
D) treasurer 
A) Certified Management Accountant 
B) controller 
C) Chartered Accountant 
D) treasurer

Question 9

What is the term for an accounting information subsystem that is primarily concerned with producing outputs for external users?

Accepted Answer

A) cost management information system 
B) computer information system 
C) internal accounting system 
D) financial accounting information system 
A) cost management information system 
B) computer information system 
C) internal accounting system 
D) financial accounting information system

Question 10

Which of the following activity is NOT associated with strategic analysis and new product development?

Accepted Answer

A) using life-cycle costing 
B) employing target costing 
C) implementing activity-based management 
D) creating performance reports 
A) using life-cycle costing 
B) employing target costing 
C) implementing activity-based management 
D) creating performance reports

Question 11

In a traditional manufacturing company,what is included in product costs?

Accepted Answer

A) direct materials only 
B) direct materials,direct labour,and factory overhead 
C) direct materials and direct labour only 
D) direct labour only 
A) direct materials only 
B) direct materials,direct labour,and factory overhead 
C) direct materials and direct labour only 
D) direct labour only

Question 12

In a company that supplies garlic bread to pizza restaurants,which of the following would be considered inputs?

Accepted Answer

A) flour,garlic,oil 
B) completed product,garlic,oil 
C) flour,completed product,oil 
D) flour,garlic,completed product 
A) flour,garlic,oil 
B) completed product,garlic,oil 
C) flour,completed product,oil 
D) flour,garlic,completed product

Question 13

Which of the following represents the resources given up that are expected to bring a current or future benefit to an organization?

Accepted Answer

A) cost 
B) expired cost 
C) expense 
D) loss 
A) cost 
B) expired cost 
C) expense 
D) loss

Question 14

What is the primary objective of the cost management information system?

Accepted Answer

A) to provide shareholders and potential investors with useful information for decision making 
B) to provide banks and other creditors with information useful in making credit decisions 
C) to provide management with information useful for planning and control of operations 
D) to provide the Canada Revenue Agency with information about taxable income 
A) to provide shareholders and potential investors with useful information for decision making 
B) to provide banks and other creditors with information useful in making credit decisions 
C) to provide management with information useful for planning and control of operations 
D) to provide the Canada Revenue Agency with information about taxable income

Question 15

The acceptance of a savings bond from a supplier would be a violation of which standard of ethical conduct for management accountants?

Accepted Answer

A) confidentiality 
B) integrity 
C) reliability 
D) observance 
A) confidentiality 
B) integrity 
C) reliability 
D) observance

Question 16

What is the term for factors that cause changes in resource usage,activity usage,costs,and revenues?

Accepted Answer

A) indirect costs 
B) drivers 
C) assignments 
D) cost objects 
A) indirect costs 
B) drivers 
C) assignments 
D) cost objects

Question 17

Which of the following methods of assigning costs is based on convenience or some assumed linkage and reduces the overall accuracy of the cost assignments?

Accepted Answer

A) direct tracing 
B) driver tracing 
C) allocation 
D) indirect allocation 
A) direct tracing 
B) driver tracing 
C) allocation 
D) indirect allocation

Question 18

Which of the following costs incurred by a chair manufacturer would be traced to the product cost through direct tracing?

Accepted Answer

A) the depreciation on factory equipment 
B) the supervisor's salary 
C) the insurance on the factory building 
D) the woodworker's salary 
A) the depreciation on factory equipment 
B) the supervisor's salary 
C) the insurance on the factory building 
D) the woodworker's salary

Question 19

What has increased along with the automation of the manufacturing environment?

Accepted Answer

A) inventory 
B) productive capacity 
C) processing time 
D) costs 
A) inventory 
B) productive capacity 
C) processing time 
D) costs

Question 20

Assume the following data for Graham Services,an architecture firm,for February: $$\begin{array} { l r } 
\text { Bepring materials inventory } & \$ 20,000 \
\text { Beginning wark-in-process inventary } & 40,000 \
\text { Ending work-in-process inventary } & 50,000 \
\text { Ending materials inventory } & 10,000 \
\text { Actual overhead costs } & 100,000 \
\text { Direct materials used } & 60,000 \
\text { Direct labour } & 200,000
\end{array}$$ What is the cost of services sold for February?

Accepted Answer

A) $330,000 
B) $350,000 
C) $360,000 
D) $370,000 
A) $330,000 
B) $350,000 
C) $360,000 
D) $370,000

What cost accounting system uses only unit-based activity drivers to assign costs to cost objects?

What does an accounting information system usually use as inputs?

Which of the following is NOT part of the financial accounting information system?

Which costs would be included in traditional product costs used for external reporting?

Which of the following costs is a period cost for a manufacturing company?

What is the term for the cost of units completed during a period?

The IMA has a program to recognize professional competence and educational attainment in the field of management accounting.What designation does the program lead to?

What is the term for an accounting information subsystem that is primarily concerned with producing outputs for external users?

Which of the following activity is NOT associated with strategic analysis and new product development?

In a traditional manufacturing company,what is included in product costs?

In a company that supplies garlic bread to pizza restaurants,which of the following would be considered inputs?

Which of the following represents the resources given up that are expected to bring a current or future benefit to an organization?

What is the primary objective of the cost management information system?

The acceptance of a savings bond from a supplier would be a violation of which standard of ethical conduct for management accountants?

What is the term for factors that cause changes in resource usage,activity usage,costs,and revenues?

Which of the following methods of assigning costs is based on convenience or some assumed linkage and reduces the overall accuracy of the cost assignments?

Which of the following costs incurred by a chair manufacturer would be traced to the product cost through direct tracing?

What has increased along with the automation of the manufacturing environment?

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters

Exam 1: A: Basic Cost Management Concepts

What cost accounting system uses only unit-based activity drivers to assign costs to cost objects?

What does an accounting information system usually use as inputs?

Which of the following is NOT part of the financial accounting information system?

Which costs would be included in traditional product costs used for external reporting?

Which of the following costs is a period cost for a manufacturing company?

What is the term for the cost of units completed during a period?

The IMA has a program to recognize professional competence and educational attainment in the field of management accounting.What designation does the program lead to?

What is the term for an accounting information subsystem that is primarily concerned with producing outputs for external users?

Which of the following activity is NOT associated with strategic analysis and new product development?

In a traditional manufacturing company,what is included in product costs?

In a company that supplies garlic bread to pizza restaurants,which of the following would be considered inputs?

Which of the following represents the resources given up that are expected to bring a current or future benefit to an organization?

What is the primary objective of the cost management information system?

The acceptance of a savings bond from a supplier would be a violation of which standard of ethical conduct for management accountants?

What is the term for factors that cause changes in resource usage,activity usage,costs,and revenues?

Which of the following methods of assigning costs is based on convenience or some assumed linkage and reduces the overall accuracy of the cost assignments?

Which of the following costs incurred by a chair manufacturer would be traced to the product cost through direct tracing?

What has increased along with the automation of the manufacturing environment?

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters