Question 1

In managerial accounting,what can help the manager decide where to direct the organization's resources?

Accepted Answer

A) Capital resource allocation models 
B) Quantum resource analysis 
C) Balanced scorecard 
D) Strategic cost analysis 
A) Capital resource allocation models 
B) Quantum resource analysis 
C) Balanced scorecard 
D) Strategic cost analysis

Question 2

Krista's Bakery produced and sold 2,000 pies last month and had fixed costs of $6,000.If production and sales are expected to increase by 10% next month,which of the following statements is true?

Accepted Answer

A) Fixed cost per unit will decrease. 
B) Fixed cost per unit will increase. 
C) Total fixed costs will decrease. 
D) Total fixed costs will increase. 
A) Fixed cost per unit will decrease. 
B) Fixed cost per unit will increase. 
C) Total fixed costs will decrease. 
D) Total fixed costs will increase.

Question 3

The following reduces the need for in-house information technology people as well as for transaction and system managers:

Accepted Answer

A) Theory of constraints. 
B) Web hosting. 
C) Generally accepted accounting principles. 
D) Stand-alone accounting systems. 
A) Theory of constraints. 
B) Web hosting. 
C) Generally accepted accounting principles. 
D) Stand-alone accounting systems.

Question 4

Which of the following is most likely to be considered a variable cost?

Accepted Answer

A) Depreciation on equipment. 
B) The cost of labor used in production. 
C) Insurance on the factory. 
D) Rent on a storage facility. 
A) Depreciation on equipment. 
B) The cost of labor used in production. 
C) Insurance on the factory. 
D) Rent on a storage facility.

Question 5

What are the ethical standards that make up the Institute of Management Accountants' Code of Ethics?

Accepted Answer

Management accountan

Question 6

Identify a non-value-added activity for customers of each of the following: a grocery store,a bank,and an airline.
How might each organization be able to eliminate the non-value-added activity identified?

Accepted Answer

Answers may vary but can include:
Grocer

Question 7

Who is the chief accounting officer that oversees providing information to managers?

Accepted Answer

A) Chief financial officer. 
B) Controller. 
C) Treasurer. 
D) Internal auditor. 
A) Chief financial officer. 
B) Controller. 
C) Treasurer. 
D) Internal auditor.

Question 8

External financial statements

Accepted Answer

A) promote internal management planning and decision making. 
B) do not show variable and fixed costs. 
C) are not in accordance with generally accepted accounting principles. 
D) show direct and indirect costs. 
A) promote internal management planning and decision making. 
B) do not show variable and fixed costs. 
C) are not in accordance with generally accepted accounting principles. 
D) show direct and indirect costs.

Question 9

Which of the following is an activity that when eliminated reduces cost without reducing the product's service to the customer?

Accepted Answer

A) direct activity. 
B) indirect activity. 
C) value-added activity. 
D) non-value-added activity. 
A) direct activity. 
B) indirect activity. 
C) value-added activity. 
D) non-value-added activity.

Question 10

Examples of value-added activities include all of the following except:

Accepted Answer

A) Assembly activities. 
B) Machinery set-up activities. 
C) The establishment of efficient distribution channels. 
D) Product design. 
A) Assembly activities. 
B) Machinery set-up activities. 
C) The establishment of efficient distribution channels. 
D) Product design.

Question 11

What is an opportunity cost?

Accepted Answer

A) The historical cost of goods or services used. 
B) The foregone income from using an asset in its best alternative. 
C) A sacrifice of resources. 
D) A sacrifice of investment opportunities. 
A) The historical cost of goods or services used. 
B) The foregone income from using an asset in its best alternative. 
C) A sacrifice of resources. 
D) A sacrifice of investment opportunities.

Question 12

Describe what is meant by just-in-time inventory management and explain how it can benefit an organization.

Accepted Answer

Just-in-time (JIT)inventory management i

Question 13

The value chain component related to the suppliers and production does not include costs for:

Accepted Answer

A) Receipt of direct materials from suppliers. 
B) Production set-up. 
C) Direct production labor. 
D) Salaries for sales personnel. 
A) Receipt of direct materials from suppliers. 
B) Production set-up. 
C) Direct production labor. 
D) Salaries for sales personnel.

Question 14

Which of the following best describes the term "benchmarking?"

Accepted Answer

A) producing a particular product at the lowest possible cost. 
B) designing the highest quality product in a given market. 
C) developing the best selling product 
D) improvement gained through measuring one's products against the best products. 
A) producing a particular product at the lowest possible cost. 
B) designing the highest quality product in a given market. 
C) developing the best selling product 
D) improvement gained through measuring one's products against the best products.

Question 15

All of the following are provisions of the Sarbanes-Oxley Act except:

Accepted Answer

A) The law states that the CEO and the CFO are responsible for signing their company's financial statements and indicating that the financial statements do not omit material information. 
B) The law requires the company's auditor must attest to management's assessment of internal controls. 
C) The law created the Public Company Accounting Oversight Board (PCAO
B) ,which
Oversees auditors of public companies. 
D) The law requires that lower-level managers submit to lie-detector tests if fraud is suspected. 
A) The law states that the CEO and the CFO are responsible for signing their company's financial statements and indicating that the financial statements do not omit material information. 
B) The law requires the company's auditor must attest to management's assessment of internal controls. 
C) The law created the Public Company Accounting Oversight Board (PCAO
B) ,which
Oversees auditors of public companies. 
D) The law requires that lower-level managers submit to lie-detector tests if fraud is suspected.

Question 16

The following provides the means for companies to outsource substantial portions of their information systems and enables the company to focus on its core competencies while taking advantage of the host's server and bandwidth capability.

Accepted Answer

A) Value chain. 
B) Web hosting. 
C) Total Quality Management. 
D) Zero-Base Budgeting. 
A) Value chain. 
B) Web hosting. 
C) Total Quality Management. 
D) Zero-Base Budgeting.

Question 17

What is your favorite restaurant? What are some of the value-added costs that you believe the restaurant incurs and why?

Accepted Answer

Answers will vary,but can include offeri

Question 18

In managerial accounting,what is the cost of capital?

Accepted Answer

A) the amount a firm could earn on its assets by putting them to their best alternative use. 
B) not included in the financial accounting statements. 
C) the weighted average of the costs of the firm's sources of funds taking into account both debt and equity sources of capital. 
D) All of the answers are correct. 
A) the amount a firm could earn on its assets by putting them to their best alternative use. 
B) not included in the financial accounting statements. 
C) the weighted average of the costs of the firm's sources of funds taking into account both debt and equity sources of capital. 
D) All of the answers are correct.

Question 19

ABC Company has the following cost relations:
   
Calculate the operating profits if the company sells 150 units.If ABC wants to increase operating profits what are the options? Give reasons and constraints for each option.

Accepted Answer

@#IMG-DLM&_TB2144_00 They can increase the sales p

Question 20

All of the following are characteristics of the value chain except:

Accepted Answer

A) a linked set of activities 
B) activities that are monitored by how they contribute to the final product's service,quality,and cost. 
C) activities that increase the usefulness of products or services 
D) includes activities that can be eliminated without reducing the product's service potential 
A) a linked set of activities 
B) activities that are monitored by how they contribute to the final product's service,quality,and cost. 
C) activities that increase the usefulness of products or services 
D) includes activities that can be eliminated without reducing the product's service potential

In managerial accounting,what can help the manager decide where to direct the organization's resources?

Krista's Bakery produced and sold 2,000 pies last month and had fixed costs of $6,000.If production and sales are expected to increase by 10% next month,which of the following statements is true?

The following reduces the need for in-house information technology people as well as for transaction and system managers:

Which of the following is most likely to be considered a variable cost?

What are the ethical standards that make up the Institute of Management Accountants' Code of Ethics?

Identify a non-value-added activity for customers of each of the following: a grocery store,a bank,and an airline. How might each organization be able to eliminate the non-value-added activity identified?

Who is the chief accounting officer that oversees providing information to managers?

External financial statements

Which of the following is an activity that when eliminated reduces cost without reducing the product's service to the customer?

Examples of value-added activities include all of the following except:

What is an opportunity cost?

Describe what is meant by just-in-time inventory management and explain how it can benefit an organization.

The value chain component related to the suppliers and production does not include costs for:

Which of the following best describes the term "benchmarking?"

All of the following are provisions of the Sarbanes-Oxley Act except:

The following provides the means for companies to outsource substantial portions of their information systems and enables the company to focus on its core competencies while taking advantage of the host's server and bandwidth capability.

What is your favorite restaurant? What are some of the value-added costs that you believe the restaurant incurs and why?

In managerial accounting,what is the cost of capital?

ABC Company has the following cost relations: Calculate the operating profits if the company sells 150 units.If ABC wants to increase operating profits what are the options? Give reasons and constraints for each option.

All of the following are characteristics of the value chain except:

Measuring Product Costs

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters

Exam 1: Fundamental Concepts

In managerial accounting,what can help the manager decide where to direct the organization's resources?

Krista's Bakery produced and sold 2,000 pies last month and had fixed costs of $6,000.If production and sales are expected to increase by 10% next month,which of the following statements is true?

The following reduces the need for in-house information technology people as well as for transaction and system managers:

Which of the following is most likely to be considered a variable cost?

What are the ethical standards that make up the Institute of Management Accountants' Code of Ethics?

Identify a non-value-added activity for customers of each of the following: a grocery store,a bank,and an airline. How might each organization be able to eliminate the non-value-added activity identified?

Who is the chief accounting officer that oversees providing information to managers?

External financial statements

Which of the following is an activity that when eliminated reduces cost without reducing the product's service to the customer?

Examples of value-added activities include all of the following except:

What is an opportunity cost?

Describe what is meant by just-in-time inventory management and explain how it can benefit an organization.

The value chain component related to the suppliers and production does not include costs for:

Which of the following best describes the term "benchmarking?"

All of the following are provisions of the Sarbanes-Oxley Act except:

The following provides the means for companies to outsource substantial portions of their information systems and enables the company to focus on its core competencies while taking advantage of the host's server and bandwidth capability.

What is your favorite restaurant? What are some of the value-added costs that you believe the restaurant incurs and why?

In managerial accounting,what is the cost of capital?

ABC Company has the following cost relations: Calculate the operating profits if the company sells 150 units.If ABC wants to increase operating profits what are the options? Give reasons and constraints for each option.

All of the following are characteristics of the value chain except:

Measuring Product Costs

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters