Question 1

Which of the following is an example of a variable cost for a manufacturing firm?

Accepted Answer

A) The cost of rent on the factory. 
B) The cost of factory supervision. 
C) The cost of raw materials. 
D) The cost of depreciation on equipment. 
A) The cost of rent on the factory. 
B) The cost of factory supervision. 
C) The cost of raw materials. 
D) The cost of depreciation on equipment. C

Question 2

A cost that has already been incurred is called a(n)_______________ cost.

Accepted Answer

A) indirect 
B) sunk 
C) relevant 
D) opportunity 
A) indirect 
B) sunk 
C) relevant 
D) opportunity B

Question 3

Which of the following functions of management involves providing motivation to achieve results?

Accepted Answer

A) Planning 
B) Organizing 
C) Directing/leading 
D) Control 
A) Planning 
B) Organizing 
C) Directing/leading 
D) Control C

Question 4

A cost that will occur in the future and differs between various alternatives under consideration is a relevant cost.For a cost to be relevant,it must occur in the future and differ between the various alternatives the manager is considering.

Accepted Answer

A) True 
 B)False

Question 5

To earn summer money,Joe could mow lawns in his neighborhood,or he could work at a local grocery store.Which of the following is an out-of-pocket cost of mowing lawns?

Accepted Answer

A) The use of his father's truck to get to job sites. 
B) The wages he could have earned working at the grocery store. 
C) The time spent mowing the lawns. 
D) Cash paid for gas to run the lawnmower. 
A) The use of his father's truck to get to job sites. 
B) The wages he could have earned working at the grocery store. 
C) The time spent mowing the lawns. 
D) Cash paid for gas to run the lawnmower.

Question 6

The planning function is the arranging of the necessary resources to carry out the plan.Planning involves setting long-term goals and objectives,along with the short-term tactics necessary to achieve them.

Accepted Answer

A) True 
 B)False

Question 7

The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting reporting environment: ethics,fraud,and managers.The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting reporting environment: opportunity,incentives,and character.

Accepted Answer

A) True 
 B)False

Question 8

Variable costs are always direct costs.Variable costs change,in total,in direct proportion to changes in activity levels.They are not always direct costs,which can be traced to a specific cost object.

Accepted Answer

A) True 
 B)False

Question 9

A fixed cost

Accepted Answer

A) goes up in total when activity increases. 
B) goes up per unit when activity increases. 
C) goes down in total when activity increases. 
D) goes down per unit when activity increases. 
A) goes up in total when activity increases. 
B) goes up per unit when activity increases. 
C) goes down in total when activity increases. 
D) goes down per unit when activity increases.

Question 10

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. 
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.

Question 11

An irrelevant cost

Accepted Answer

A) is also called a differential cost. 
B) must differ between decision alternatives. 
C) must be incurred in the future rather than in the past. 
D) will not influence a decision. 
A) is also called a differential cost. 
B) must differ between decision alternatives. 
C) must be incurred in the future rather than in the past. 
D) will not influence a decision.

Question 12

Whether a cost is treated as direct or indirect depends on whether tracing the cost is either possible or feasible.Direct costs can be traced directly to a specific cost object,while indirect costs cannot be traced to a specific cost object or are not worth the effort of tracing.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following types of organizations sells goods to the general public?

Accepted Answer

A) Service companies 
B) Manufacturing firms 
C) Merchandising companies 
D) Retailers 
A) Service companies 
B) Manufacturing firms 
C) Merchandising companies 
D) Retailers

Question 14

Nonmanufacturing costs are generally classified into what two groups?

Accepted Answer

A) Conversion costs and prime costs. 
B) Direct materials and direct labor. 
C) Marketing costs and administrative costs. 
D) Direct labor and manufacturing overheaD.Nonmanufacturing costs are generally classified into two groups: marketing or selling costs,and administrative costs. 
A) Conversion costs and prime costs. 
B) Direct materials and direct labor. 
C) Marketing costs and administrative costs. 
D) Direct labor and manufacturing overheaD.Nonmanufacturing costs are generally classified into two groups: marketing or selling costs,and administrative costs.

Question 15

Which of the following functions of management involves setting short and long-term objectives and the tactics to achieve them?

Accepted Answer

A) Planning 
B) Organizing 
C) Directing/leading 
D) Control 
A) Planning 
B) Organizing 
C) Directing/leading 
D) Control

Question 16

Robin Company has the following balances for the current month: What are Robin's prime costs?

Accepted Answer

A) $60,800 
B) $56,000 
C) $75,200 
D) $65,600 
A) $60,800 
B) $56,000 
C) $75,200 
D) $65,600

Question 17

Prime costs are defined as

Accepted Answer

A) Manufacturing costs plus non-manufacturing costs. 
B) Direct labor plus direct materials. 
C) Variable costs equal fixed costs. 
D) Manufacturing overhead plus direct labor. 
A) Manufacturing costs plus non-manufacturing costs. 
B) Direct labor plus direct materials. 
C) Variable costs equal fixed costs. 
D) Manufacturing overhead plus direct labor.

Question 18

You are to receive five gold coins from your great uncle as an incentive to study hard.The coins were originally purchased in 1982.Your great uncle will deliver the coins the week after finals (assuming your grades are "acceptable").The amount your great uncle paid for the coins is a(n)

Accepted Answer

A) opportunity cost. 
B) indirect cost. 
C) sunk cost. 
D) overhead cost. 
A) opportunity cost. 
B) indirect cost. 
C) sunk cost. 
D) overhead cost.

Question 19

Robin Company has the following balances for the current month: What is Robin's total manufacturing cost?

Accepted Answer

A) $115,200 
B) $81,600 
C) $33,600 
D) $60,800 
A) $115,200 
B) $81,600 
C) $33,600 
D) $60,800

Question 20

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) Retailers 
A) Manufacturing firms 
B) Merchandising companies 
C) Service companies 
D) Retailers

Which of the following is an example of a variable cost for a manufacturing firm?

A cost that has already been incurred is called a(n)_______________ cost.

Which of the following functions of management involves providing motivation to achieve results?

A cost that will occur in the future and differs between various alternatives under consideration is a relevant cost.For a cost to be relevant,it must occur in the future and differ between the various alternatives the manager is considering.

To earn summer money,Joe could mow lawns in his neighborhood,or he could work at a local grocery store.Which of the following is an out-of-pocket cost of mowing lawns?

The planning function is the arranging of the necessary resources to carry out the plan.Planning involves setting long-term goals and objectives,along with the short-term tactics necessary to achieve them.

The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting reporting environment: ethics,fraud,and managers.The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting reporting environment: opportunity,incentives,and character.

Variable costs are always direct costs.Variable costs change,in total,in direct proportion to changes in activity levels.They are not always direct costs,which can be traced to a specific cost object.

A fixed cost

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

An irrelevant cost

Whether a cost is treated as direct or indirect depends on whether tracing the cost is either possible or feasible.Direct costs can be traced directly to a specific cost object,while indirect costs cannot be traced to a specific cost object or are not worth the effort of tracing.

Which of the following types of organizations sells goods to the general public?

Nonmanufacturing costs are generally classified into what two groups?

Which of the following functions of management involves setting short and long-term objectives and the tactics to achieve them?

Robin Company has the following balances for the current month: What are Robin's prime costs?

Prime costs are defined as

You are to receive five gold coins from your great uncle as an incentive to study hard.The coins were originally purchased in 1982.Your great uncle will deliver the coins the week after finals (assuming your grades are "acceptable").The amount your great uncle paid for the coins is a(n)

Robin Company has the following balances for the current month: What is Robin's total manufacturing cost?

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

Job Order Costing

Process Costing

Activity-Based Costing and Cost Management

Cost Behavior

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Standard Costing and Variances

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 1: Introduction to Managerial Accounting

Which of the following is an example of a variable cost for a manufacturing firm?

A cost that has already been incurred is called a(n)_______________ cost.

Which of the following functions of management involves providing motivation to achieve results?

A cost that will occur in the future and differs between various alternatives under consideration is a relevant cost.For a cost to be relevant,it must occur in the future and differ between the various alternatives the manager is considering.

To earn summer money,Joe could mow lawns in his neighborhood,or he could work at a local grocery store.Which of the following is an out-of-pocket cost of mowing lawns?

The planning function is the arranging of the necessary resources to carry out the plan.Planning involves setting long-term goals and objectives,along with the short-term tactics necessary to achieve them.

The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting reporting environment: ethics,fraud,and managers.The Sarbanes-Oxley Act of 2002 focuses on three factors that affect the accounting reporting environment: opportunity,incentives,and character.

Variable costs are always direct costs.Variable costs change,in total,in direct proportion to changes in activity levels.They are not always direct costs,which can be traced to a specific cost object.

A fixed cost

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

An irrelevant cost

Whether a cost is treated as direct or indirect depends on whether tracing the cost is either possible or feasible.Direct costs can be traced directly to a specific cost object,while indirect costs cannot be traced to a specific cost object or are not worth the effort of tracing.

Which of the following types of organizations sells goods to the general public?

Nonmanufacturing costs are generally classified into what two groups?

Which of the following functions of management involves setting short and long-term objectives and the tactics to achieve them?

Robin Company has the following balances for the current month: What are Robin's prime costs?

Prime costs are defined as

You are to receive five gold coins from your great uncle as an incentive to study hard.The coins were originally purchased in 1982.Your great uncle will deliver the coins the week after finals (assuming your grades are "acceptable").The amount your great uncle paid for the coins is a(n)

Robin Company has the following balances for the current month: What is Robin's total manufacturing cost?

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

Job Order Costing

Process Costing

Activity-Based Costing and Cost Management

Cost Behavior

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Standard Costing and Variances

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters