Question 1

Cash paid to production workers should be recorded as Wages Expense in the income statement for the period incurred.

Accepted Answer

A) True 
 B)False

Question 2

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

Steven should first identify the ethical

Question 3

How does the level of aggregation differ between financial accounting information and managerial accounting information?

Accepted Answer

Most financial accounting information is

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

What are upstream costs? What upstream costs would be incurred by a company that produces and sells computer software programs?

Accepted Answer

Upstream costs are incurred before a com

Question 6

Discuss three practical implications of misclassifying product and/or period costs.

Accepted Answer

The temporary effects on the financial s

Question 7

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 8

Management accountants have a responsibility to demonstrate integrity.What does this ethical standard require of management accountants?

Accepted Answer

The integrity standard requires manageme

Question 9

As a Certified Management Accountant,Suzanne is bound by the standards of ethical conduct issued by the Institute of Management Accountants.During the course of business,Suzanne learned that her company has decided to discontinue a major product line.If she mentions this fact to her brother,who is a stockbroker,Suzanne could be in violation of the:

Accepted Answer

A)  competence standard. 
B)  confidentiality standard. 
C)  integrity standard. 
D)  objectivity standard. 
A)  competence standard. 
B)  confidentiality standard. 
C)  integrity standard. 
D)  objectivity standard.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Senior executives focus on financial data when comparing the performance of their companies to that of competitors.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements concerning manufacturing costs is incorrect?

Accepted Answer

A)  All salaries incurred by the sales department are expensed as incurred. 
B)  Direct labor costs are recorded initially in an inventory account. 
C)  Depreciation on manufacturing equipment is a period cost. 
D)  The cost of direct materials can be readily traced to products. 
A)  All salaries incurred by the sales department are expensed as incurred. 
B)  Direct labor costs are recorded initially in an inventory account. 
C)  Depreciation on manufacturing equipment is a period cost. 
D)  The cost of direct materials can be readily traced to products.

Question 13

Select the incorrect statement regarding the relationship between type of user and type of information.

Accepted Answer

A)  Middle managers need more nonfinancial, or operational data than do senior executives. 
B)  Assembly line supervisors need more immediate feedback on performance than do senior executives. 
C)  Senior executives need less aggregated information than do lower-level managers. 
D)  Senior executives use general economic information as well as financial information. 
A)  Middle managers need more nonfinancial, or operational data than do senior executives. 
B)  Assembly line supervisors need more immediate feedback on performance than do senior executives. 
C)  Senior executives need less aggregated information than do lower-level managers. 
D)  Senior executives use general economic information as well as financial information.

Question 14

For what activities do an organization's managers need accounting information?

Accepted Answer

Managers of an organization us

Question 15

As a Certified Management Accountant,Grace is bound by the standards of ethical conduct issued by the Institute of Management Accountants.If she accepts an expensive gift from a vendor trying to win a contract with her firm,which of the following standards will she violate?

Accepted Answer

A)  Integrity 
B)  Confidentiality 
C)  Competence 
D)  Objectivity 
A)  Integrity 
B)  Confidentiality 
C)  Competence 
D)  Objectivity

Question 16

Randall Company manufactures chocolate bars.The following were among Randall's manufacturing costs during the current year: $\begin{array}{lrr}
\text { Wages }\
  \text { Machine operators } &\$300,000\
 \text { Selline and administrative personnel } &\$75,000\
\text { Materials used }\
 \text { Lubricant for oiling machinery  } &\$25,000\
 \text { Cocoa, sugar, and other raw materials  } &\$225,000\
 \text {Packaging materials  } &\$190,000\
\end{array}$ Randall's direct materials amounted to:

Accepted Answer

A)  $25,000. 
B)  $225,000. 
C)  $250,000. 
D)  $475,000. 
A)  $25,000. 
B)  $225,000. 
C)  $250,000. 
D)  $475,000.

Question 17

Just-in-time systems can be used by both manufacturing and merchandising companies.

Accepted Answer

A) True 
 B)False

Question 18

The objective of a just-in-time inventory system is to totally eliminate all inventories.

Accepted Answer

A) True 
 B)False

Question 19

All of the following are features of managerial accounting except:

Accepted Answer

A)  information is provided primarily to insiders such as managers. 
B)  information includes economic and non-financial data as well as financial data. 
C)  information is characterized by objectivity, reliability, consistency, and accuracy. 
D)  information is reported continuously with a present or future orientation. 
A)  information is provided primarily to insiders such as managers. 
B)  information includes economic and non-financial data as well as financial data. 
C)  information is characterized by objectivity, reliability, consistency, and accuracy. 
D)  information is reported continuously with a present or future orientation.

Question 20

Management accountants have a responsibility to be objective.What does this ethical standard require of management accountants?

Accepted Answer

This standard requires accountants to co

Cash paid to production workers should be recorded as Wages Expense in the income statement for the period incurred.

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.

How does the level of aggregation differ between financial accounting information and managerial accounting information?

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

What are upstream costs? What upstream costs would be incurred by a company that produces and sells computer software programs?

Discuss three practical implications of misclassifying product and/or period costs.

Management accountants have a responsibility to demonstrate integrity.What does this ethical standard require of management accountants?

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

Senior executives focus on financial data when comparing the performance of their companies to that of competitors.

Which of the following statements concerning manufacturing costs is incorrect?

Select the incorrect statement regarding the relationship between type of user and type of information.

For what activities do an organization's managers need accounting information?

As a Certified Management Accountant,Grace is bound by the standards of ethical conduct issued by the Institute of Management Accountants.If she accepts an expensive gift from a vendor trying to win a contract with her firm,which of the following standards will she violate?

Just-in-time systems can be used by both manufacturing and merchandising companies.

The objective of a just-in-time inventory system is to totally eliminate all inventories.

All of the following are features of managerial accounting except:

Management accountants have a responsibility to be objective.What does this ethical standard require of management accountants?

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

Cash paid to production workers should be recorded as Wages Expense in the income statement for the period incurred.

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.

How does the level of aggregation differ between financial accounting information and managerial accounting information?

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

What are upstream costs? What upstream costs would be incurred by a company that produces and sells computer software programs?

Discuss three practical implications of misclassifying product and/or period costs.

Management accountants have a responsibility to demonstrate integrity.What does this ethical standard require of management accountants?

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

Senior executives focus on financial data when comparing the performance of their companies to that of competitors.

Which of the following statements concerning manufacturing costs is incorrect?

Select the incorrect statement regarding the relationship between type of user and type of information.

For what activities do an organization's managers need accounting information?

As a Certified Management Accountant,Grace is bound by the standards of ethical conduct issued by the Institute of Management Accountants.If she accepts an expensive gift from a vendor trying to win a contract with her firm,which of the following standards will she violate?

Just-in-time systems can be used by both manufacturing and merchandising companies.

The objective of a just-in-time inventory system is to totally eliminate all inventories.

All of the following are features of managerial accounting except:

Management accountants have a responsibility to be objective.What does this ethical standard require of management accountants?

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