Question 1

Similar to financial accounting reports,management accounting reports are standardized in format.

Accepted Answer

A) True 
 B)False

Question 2

The fundamental way in which a company will achieve its goal is described in its

Accepted Answer

A) balance sheet and income statement. 
B) cash flow statement. 
C) budget. 
D) mission statement. 
A) balance sheet and income statement. 
B) cash flow statement. 
C) budget. 
D) mission statement.

Question 3

Costs can also be classified as value-adding or non-value-adding costs.

Accepted Answer

A) True 
 B)False

Question 4

Dale,Smith,and Associates,a CPA firm,is trying to determine the hourly cost of its junior accountants in the auditing department.The following data have been gathered.
  Assuming 40 percent of the monthly overhead costs for the auditing department are attributable to the junior accountants,compute the hourly cost of their services.(Round your answer to two decimal places. )

Accepted Answer

The answer of Dale,Smith,and Associates,a CPA firm,is trying to determine...

Question 5

Period costs are charged against the revenue of the current period.

Accepted Answer

A) True 
 B)False

Question 6

Steve,the management accountant of a company,is not familiar with the concept of prudence in financial reporting.Which of the following IMA standards is Steve violating?

Accepted Answer

A) Confidentiality 
B) Materiality 
C) Disclosure 
D) Competence 
A) Confidentiality 
B) Materiality 
C) Disclosure 
D) Competence

Question 7

Consider the following information: direct materials used totaled $124,700;direct labor amounted to $412,000;overhead was computed to be $789,600;Work in Process Inventory on March 1,2014,was $482,500;and Work in Process Inventory on March 31,2014,was $597,100.What was the cost of goods manufactured?

Accepted Answer

A) $1,211,700 
B) $729,200 
C) $1,440,900 
D) $422,100 
A) $1,211,700 
B) $729,200 
C) $1,440,900 
D) $422,100

Question 8

Both indirect materials and indirect labor are overhead costs.

Accepted Answer

A) True 
 B)False

Question 9

Fill in the missing data for Company C:

Accepted Answer

a.$5,000
b.$4,000
c.

Question 10

Which of the following is not one of the key questions to be addressed when preparing an accounting report?

Accepted Answer

A) What is audience's familiarity with accounting? 
B) What information should be included? 
C) When is it due and what method of presentation is best? 
D) How long should the information be valid? 
A) What is audience's familiarity with accounting? 
B) What information should be included? 
C) When is it due and what method of presentation is best? 
D) How long should the information be valid?

Question 11

Management accounting formats are identical for all companies.

Accepted Answer

A) True 
 B)False

Question 12

Management accounting data must be expressed in historical dollars.

Accepted Answer

A) True 
 B)False

Question 13

Management accounting differs from financial accounting in many ways.Indicate with an "X" in the appropriate column whether each of the following characteristics relates to financial accounting,management accounting,or neither.

Accepted Answer

The answer of Management accounting differs from financial accounting in...

Question 14

Indirect product costs incurred are charged directly to the Cost of Goods Sold account.

Accepted Answer

A) True 
 B)False

Question 15

The costs of marketing and delivering a product are recorded in the Work in Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not a product cost?

Accepted Answer

A) Indirect materials costs 
B) Packaging costs 
C) Direct labor costs 
D) Overhead costs 
A) Indirect materials costs 
B) Packaging costs 
C) Direct labor costs 
D) Overhead costs

Question 17

Which of the following accounts includes the cost of completed but unsold units of a manufacturing firm?

Accepted Answer

A) Cost of Goods Sold 
B) Finished Goods Inventory 
C) Work in Process Inventory 
D) Materials Inventory 
A) Cost of Goods Sold 
B) Finished Goods Inventory 
C) Work in Process Inventory 
D) Materials Inventory

Question 18

The credibility standard of management accountants state that management accountants must communicate information fairly and objectively.This means essentially that accountants must perform each task

Accepted Answer

A) as professionals,possessing the degree of skill of those management accountants who held the position before them. 
B) to provide relevant information,both positive and negative,to the recipients of their reports. 
C) in conformity with generally accepted accounting principles. 
D) to the satisfaction of government regulators. 
A) as professionals,possessing the degree of skill of those management accountants who held the position before them. 
B) to provide relevant information,both positive and negative,to the recipients of their reports. 
C) in conformity with generally accepted accounting principles. 
D) to the satisfaction of government regulators.

Question 19

Period cost is also called

Accepted Answer

A) variable cost. 
B) direct cost. 
C) value-adding cost. 
D) noninventoriable cost. 
A) variable cost. 
B) direct cost. 
C) value-adding cost. 
D) noninventoriable cost.

Question 20

Both direct and indirect labor costs can be directly traced to finished products.

Accepted Answer

A) True 
 B)False

Exam 17: Managerial Accounting and Cost Concepts

Similar to financial accounting reports,management accounting reports are standardized in format.

The fundamental way in which a company will achieve its goal is described in its

Costs can also be classified as value-adding or non-value-adding costs.

Period costs are charged against the revenue of the current period.

Steve,the management accountant of a company,is not familiar with the concept of prudence in financial reporting.Which of the following IMA standards is Steve violating?

Both indirect materials and indirect labor are overhead costs.

Fill in the missing data for Company C:

Which of the following is not one of the key questions to be addressed when preparing an accounting report?

Management accounting formats are identical for all companies.

Management accounting data must be expressed in historical dollars.

Management accounting differs from financial accounting in many ways.Indicate with an "X" in the appropriate column whether each of the following characteristics relates to financial accounting,management accounting,or neither.

Indirect product costs incurred are charged directly to the Cost of Goods Sold account.

The costs of marketing and delivering a product are recorded in the Work in Process Inventory account.

Which of the following is not a product cost?

Which of the following accounts includes the cost of completed but unsold units of a manufacturing firm?

The credibility standard of management accountants state that management accountants must communicate information fairly and objectively.This means essentially that accountants must perform each task

Period cost is also called

Both direct and indirect labor costs can be directly traced to finished products.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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