Question 1

Which of the following is true about product and period costs?

Accepted Answer

A)  Product costs are usually manufacturing costs,and period costs are usually nonmanufacturing costs.
B)  Product costs are usually nonmanufacturing costs,and period costs are usually manufacturing costs.
C)  Both product and period costs are usually manufacturing costs.
D)  Both product and period costs are usually nonmanufacturing costs.E) B) and C)
F) A) and B)

Question 2

Pretend you are a junior managerial accountant.Your supervisor has no knowledge of sustainability accounting.All of the following statements would be convincing arguments to advocate for the importance of sustainability accounting,except one.Which one?

Accepted Answer

A)  Sustainability accounting reflects the changing nature of accountability.
B)  Companies are only accountable to shareholders and shareholders care about sustainability.
C)  Companies are accountable to the world at large,not simply to shareholders.
D)  Sustainability accounting does not replace the emphasis on financial results;rather it complements financial strength in building a strong company for the future.E) A) and B)
F) None of the above

Question 3

A relevant cost is a cost that:

Accepted Answer

A)  has the potential to influence a decision.
B)  changes in direct proportion to changes in activity level.
C)  can be traced to a specific cost object.
D)  is used for control purposes.E) A) and D)
F) A) and C)

Question 4

Managers of small,private corporations use managerial accounting information whereas managers of large,public corporations use financial accounting information.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following types of organizations purchases raw materials from suppliers and uses them to create a finished product?

Accepted Answer

A)  Manufacturing firms
B)  Merchandising companies
C)  Service companies
D)  RetailersE) B) and D)
F) None of the above

Question 6

For each of the following independent cases,compute the missing values:

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> Prime costs are the total of direct mat...

Question 7

Stetson Manufacturing builds custom wooden cabinets.Classify the following items as a)what category of product costs and b)whether the item is a prime or conversion cost.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> Direct materials are the traceable mate...

Question 8

What is the primary goal of accounting?

Accepted Answer

A)  To set long-term goals and objectives.
B)  To arrange for the necessary resources to achieve a plan.
C)  To provide information for decision making.
D)  To motivate others to work towards a plan's success.E) B) and D)
F) B) and C) C

Question 9

Salon de Beauty,a local hair salon,incurred the following costs last month.(Hint: Treat Salon utilities as Variable cost)
  Calculate each of the following,where the cost object is customers served:
a.Total variable costs
b.Total fixed costs
c.Total direct costs
d.Total indirect costs

Accepted Answer

a.Total variable costs: $4,180 = $890 + ...

Question 10

Many organizations are building sustainable business practices into their strategies by issuing:

Accepted Answer

A)  corporate social responsibility reports.
B)  reports on internal controls.
C)  profit and loss statements that reflect people and planet costs.
D)  reports from the board of directors on sustainability.E) None of the above
F) All of the above

Question 11

An out-of-pocket costs is:

Accepted Answer

A)  an actual outlay of cash.
B)  the cost of not doing something.
C)  a deferred cost.
D)  a budgeted estimate.E) C) and D)
F) A) and C)

Question 12

Of the following groups,which is the primary user of managerial accounting information?

Accepted Answer

A)  Investors
B)  Creditors
C)  Regulators
D)  ManagersE) B) and C)
F) A) and D)

Question 13

Which of the following might you find in a job description for a managerial accountant in a manufacturing company?

Accepted Answer

A)  The Managerial Accountant will conduct internal analysis on the health of the company,suggest variances to emphasize in evaluations,and review unusual results.
B)  The Managerial Accountant will be the primary contact in dealing with the external audit team.
C)  The Managerial Accountant will be responsible for preparing and presenting quarterly financial statements to management.
D)  The ideal candidate for this position will have a strong knowledge of financial accounting to provide advice on generally accepted accounting principles to the CFO.E) A) and B)
F) All of the above

Question 14

Which of the following is the correct sequencing of the functions within the managerial cycle?

Accepted Answer

A)  Plan - Control - Implement
B)  Review - Plan - Implement
C)  Plan - Implement - Control
D)  Review - Control - PlanE) C) and D)
F) B) and D)

Question 15

Which of the following functions of management involves arranging for the necessary resources to carry out the plan?

Accepted Answer

A)  Planning
B)  Implementing
C)  Reviewing
D)  ControlE) None of the above
F) A) and B)

Question 16

What determines the difference between a variable and a fixed cost?

Accepted Answer

A)  Whether the total cost changes when activity levels change.
B)  Whether the total cost is relevant to a particular decision.
C)  Whether the total cost can be traced to a specific cost object.
D)  Whether the total cost is related to manufacturing or nonmanufacturing activities.E) B) and D)
F) A) and C)

Question 17

Which of the following is not a characteristic of managerial accounting?

Accepted Answer

A)  Information is used by external parties.
B)  Information is subjective,relevant,and future-oriented.
C)  Reports are prepared as needed.
D)  Information is reported at the decision making level.E) B) and D)
F) B) and C) A

Question 18

A cost is $50,000 when 25,000 units are produced,and $100,000 when 50,000 units are produced.This is an example of a(n) :

Accepted Answer

A)  fixed cost.
B)  direct cost.
C)  variable cost.
D)  indirect cost.E) B) and C)
F) B) and D) C

Question 19

Conversion costs can be defined as:

Accepted Answer

A)  manufacturing costs plus non-manufacturing costs.
B)  direct labor plus direct materials.
C)  variable costs plus fixed costs.
D)  manufacturing costs minus direct materials.E) C) and D)
F) B) and C)

Question 20

Which of the following is not true about how the Sarbanes-Oxley Act emphasizes the importance of the character of managers and employees?

Accepted Answer

A)  It requires that ethics be embedded in the organizational culture.
B)  It requires that audit committees establish anonymous tip lines.
C)  It provides protection for whistle-blowers.
D)  It requires that public companies adopt a code of ethics for senior financial officers.E) A) and D)
F) B) and D)

Exam 1: Introduction to Managerial Accounting

Which of the following is true about product and period costs?

Correct AnswerverifiedShow Answer

Pretend you are a junior managerial accountant.Your supervisor has no knowledge of sustainability accounting.All of the following statements would be convincing arguments to advocate for the importance of sustainability accounting,except one.Which one?

Correct AnswerverifiedShow Answer

A relevant cost is a cost that:

Correct AnswerverifiedShow Answer

Managers of small,private corporations use managerial accounting information whereas managers of large,public corporations use financial accounting information.

Correct AnswerverifiedShow Answer

Which of the following types of organizations purchases raw materials from suppliers and uses them to create a finished product?

Correct AnswerverifiedShow Answer

For each of the following independent cases,compute the missing values:

Correct Answerverified Prime costs are the total of direct mat...View AnswerShow Answer

Stetson Manufacturing builds custom wooden cabinets.Classify the following items as a)what category of product costs and b)whether the item is a prime or conversion cost.

Correct Answerverified Direct materials are the traceable mate...View AnswerShow Answer

What is the primary goal of accounting?

Correct AnswerverifiedC

Salon de Beauty,a local hair salon,incurred the following costs last month.(Hint: Treat Salon utilities as Variable cost) Calculate each of the following,where the cost object is customers served: a.Total variable costs b.Total fixed costs c.Total direct costs d.Total indirect costs

Correct Answerverifieda.Total variable costs: $4,180 = $890 + ...View AnswerShow Answer

Many organizations are building sustainable business practices into their strategies by issuing:

Correct AnswerverifiedShow Answer

An out-of-pocket costs is:

Correct AnswerverifiedShow Answer

Of the following groups,which is the primary user of managerial accounting information?

Correct AnswerverifiedShow Answer

Which of the following might you find in a job description for a managerial accountant in a manufacturing company?

Correct AnswerverifiedShow Answer

Which of the following is the correct sequencing of the functions within the managerial cycle?

Correct AnswerverifiedShow Answer

Which of the following functions of management involves arranging for the necessary resources to carry out the plan?

Correct AnswerverifiedShow Answer

What determines the difference between a variable and a fixed cost?

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of managerial accounting?

Correct AnswerverifiedA

A cost is $50,000 when 25,000 units are produced,and $100,000 when 50,000 units are produced.This is an example of a(n) :

Correct AnswerverifiedC

Conversion costs can be defined as:

Correct AnswerverifiedShow Answer

Which of the following is not true about how the Sarbanes-Oxley Act emphasizes the importance of the character of managers and employees?

Correct AnswerverifiedShow Answer

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Prime costs are the total of direct mat...
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Direct materials are the traceable mate...
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C

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a.Total variable costs: $4,180 = $890 + ...
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A

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C

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