Question 1

When the number of units manufactured increases,the most significant change in average unit cost will be reflected as

Accepted Answer

A) an increase in the nonvariable component. 
B) a decrease in the variable component. 
C) a decrease in the nonvariable component. 
D) an increase in the variable component. 
A) an increase in the nonvariable component. 
B) a decrease in the variable component. 
C) a decrease in the nonvariable component. 
D) an increase in the variable component.

Question 2

What appears at the bottom of income statements prepared for managerial use to distinguish it from net income used in external reporting?

Accepted Answer

A) Other comprehensive income 
B) Operating profit 
C) Gross margin 
D) Net profit (or loss) 
A) Other comprehensive income 
B) Operating profit 
C) Gross margin 
D) Net profit (or loss)

Question 3

The nursing station on the fourth floor of Columbia Hospital for Women is responsible for the care of patients who have just given birth.The costs of drugs administered by the nurses to patients would be classified as

Accepted Answer

A) direct costs. 
B) indirect costs. 
C) overhead costs. 
D) period costs. 
A) direct costs. 
B) indirect costs. 
C) overhead costs. 
D) period costs.

Question 4

What organization publishes a journal called Strategic Finance,numerous policy statements,and research studies on accounting issues?

Accepted Answer

A) Institute of Management Accountants 
B) Cost Accounting Standards Board 
C) General Accounting Office 
D) American Institute of Certified Public Accountants 
A) Institute of Management Accountants 
B) Cost Accounting Standards Board 
C) General Accounting Office 
D) American Institute of Certified Public Accountants

Question 5

Discuss the managerial accountants' professional environment and ethical responsibilities.

Accepted Answer

Companies hold managers accountable for

Question 6

What does the term "just-in-time" refer to?

Accepted Answer

A) factories built just in time to meet production needs. 
B) machinery placed in service just in time to begin production. 
C) materials received from suppliers just in time for production needs. 
D) All of the answers are correct. 
A) factories built just in time to meet production needs. 
B) machinery placed in service just in time to begin production. 
C) materials received from suppliers just in time for production needs. 
D) All of the answers are correct.

Question 7

Data for Cost A and Cost B are as follows:
 
Which of the following best describes the behavior of Costs A and B?

Accepted Answer

A) Cost A is fixed,Cost B is variable. 
B) Cost A is variable,Cost B is fixed. 
C) Both Cost A and Cost B are variable. 
D) Both Cost A and Cost B are fixed. 
A) Cost A is fixed,Cost B is variable. 
B) Cost A is variable,Cost B is fixed. 
C) Both Cost A and Cost B are variable. 
D) Both Cost A and Cost B are fixed.

Question 8

How can web hosting help a small start-up company?

Accepted Answer

Many small companies outsource substanti

Question 9

What is the study of the need for activities and whether they are operating efficiently called?

Accepted Answer

A) direct and indirect cost management. 
B) variable and fixed cost management. 
C) activity-based management. 
D) total quality management. 
A) direct and indirect cost management. 
B) variable and fixed cost management. 
C) activity-based management. 
D) total quality management.

Question 10

The question "How much information is enough?" for managerial purposes should be answered on

Accepted Answer

A) a cost/benefit basis. 
B) a cost,but not benefit,basis. 
C) a benefit,but not cost,basis. 
D) neither costs nor benefits,but some other criteria. 
A) a cost/benefit basis. 
B) a cost,but not benefit,basis. 
C) a benefit,but not cost,basis. 
D) neither costs nor benefits,but some other criteria.

Question 11

How is cost,as used in managerial accounting,distinguished from expense,as used in financial accounting?

Accepted Answer

A) A cost is a sacrifice of resources and expenses are recorded in accounting records,but not all costs appear in accounting records. 
B) All expenses are costs,but not all costs are expenses in the period of incurrence,even though they will become expenses in some later period. 
C) Managerial accounting deals primarily with costs,not expenses,while financial accounting primarily deals with expenses for financial reporting as defined by generally accepted accounting principles. 
D) All of the answers are correct. 
A) A cost is a sacrifice of resources and expenses are recorded in accounting records,but not all costs appear in accounting records. 
B) All expenses are costs,but not all costs are expenses in the period of incurrence,even though they will become expenses in some later period. 
C) Managerial accounting deals primarily with costs,not expenses,while financial accounting primarily deals with expenses for financial reporting as defined by generally accepted accounting principles. 
D) All of the answers are correct.

Question 12

Which of the following concepts isleast useful for managing costs more effectively?

Accepted Answer

A) Activity-based management. 
B) Value-added and non-value-added activities. 
C) The value chain. 
D) Generally accepted accounting principles. 
A) Activity-based management. 
B) Value-added and non-value-added activities. 
C) The value chain. 
D) Generally accepted accounting principles.

Question 13

Who manages cash flows and raises cash for operations in most organizations?

Accepted Answer

A) Controller 
B) Treasurer 
C) Board of directors 
D) Chief executive officer 
A) Controller 
B) Treasurer 
C) Board of directors 
D) Chief executive officer

Question 14

All of the following correctly describe accounting information used for managerial purposes except:

Accepted Answer

A) Most managerial decisions require more detailed data than external financial reports provide. 
B) Managers must use the same accounting data for their decision making,planning,and other managerial activities as they present in tax returns and financial statements. 
C) "One size fits all" does not apply to accounting information used for managerial accounting purposes. 
D) Many companies develop managerial accounting information systems independent of financial accounting information systems. 
A) Most managerial decisions require more detailed data than external financial reports provide. 
B) Managers must use the same accounting data for their decision making,planning,and other managerial activities as they present in tax returns and financial statements. 
C) "One size fits all" does not apply to accounting information used for managerial accounting purposes. 
D) Many companies develop managerial accounting information systems independent of financial accounting information systems.

When the number of units manufactured increases,the most significant change in average unit cost will be reflected as

What appears at the bottom of income statements prepared for managerial use to distinguish it from net income used in external reporting?

The nursing station on the fourth floor of Columbia Hospital for Women is responsible for the care of patients who have just given birth.The costs of drugs administered by the nurses to patients would be classified as

What organization publishes a journal called Strategic Finance,numerous policy statements,and research studies on accounting issues?

Discuss the managerial accountants' professional environment and ethical responsibilities.

What does the term "just-in-time" refer to?

Data for Cost A and Cost B are as follows: Which of the following best describes the behavior of Costs A and B?

How can web hosting help a small start-up company?

What is the study of the need for activities and whether they are operating efficiently called?

The question "How much information is enough?" for managerial purposes should be answered on

How is cost,as used in managerial accounting,distinguished from expense,as used in financial accounting?

Which of the following concepts isleast useful for managing costs more effectively?

Who manages cash flows and raises cash for operations in most organizations?

All of the following correctly describe accounting information used for managerial purposes 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

When the number of units manufactured increases,the most significant change in average unit cost will be reflected as

What appears at the bottom of income statements prepared for managerial use to distinguish it from net income used in external reporting?

The nursing station on the fourth floor of Columbia Hospital for Women is responsible for the care of patients who have just given birth.The costs of drugs administered by the nurses to patients would be classified as

What organization publishes a journal called Strategic Finance,numerous policy statements,and research studies on accounting issues?

Discuss the managerial accountants' professional environment and ethical responsibilities.

What does the term "just-in-time" refer to?

Data for Cost A and Cost B are as follows: Which of the following best describes the behavior of Costs A and B?

How can web hosting help a small start-up company?

What is the study of the need for activities and whether they are operating efficiently called?

The question "How much information is enough?" for managerial purposes should be answered on

How is cost,as used in managerial accounting,distinguished from expense,as used in financial accounting?

Which of the following concepts isleast useful for managing costs more effectively?

Who manages cash flows and raises cash for operations in most organizations?

All of the following correctly describe accounting information used for managerial purposes 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