Question 1

Variable costs are

Accepted Answer

A) costs that are not worth the effort to trace to a specific cost object. 
B) costs that change,in total,in direct proportion to changes in activity levels. 
C) always irrelevant. 
D) costs that remain constant no matter the activity level. 
A) costs that are not worth the effort to trace to a specific cost object. 
B) costs that change,in total,in direct proportion to changes in activity levels. 
C) always irrelevant. 
D) costs that remain constant no matter the activity level.

Question 2

All manufacturing costs are treated as product costs.GAAP requires that all manufacturing costs be treated as product costs,or costs that are assigned to the product as it is being manufactured.

Accepted Answer

A) True 
 B)False

Question 3

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. 
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.

Question 4

Which of the following statements concerning costs is incorrect?

Accepted Answer

A) Costs are treated differently depending on how the information will be used. 
B) Out-of-pocket costs include the costs associated with not taking a particular course of action. 
C) Any single cost can be classified in more than one way. 
D) Costs can be categorized on the basis of relevant or irrelevant costs. 
A) Costs are treated differently depending on how the information will be used. 
B) Out-of-pocket costs include the costs associated with not taking a particular course of action. 
C) Any single cost can be classified in more than one way. 
D) Costs can be categorized on the basis of relevant or irrelevant costs.

Question 5

Prime costs are the same as

Accepted Answer

A) Manufacturing costs minus non-manufacturing costs. 
B) Manufacturing costs minus manufacturing overhead. 
C) Manufacturing costs minus fixed costs. 
D) Manufacturing costs minus direct materials. 
A) Manufacturing costs minus non-manufacturing costs. 
B) Manufacturing costs minus manufacturing overhead. 
C) Manufacturing costs minus fixed costs. 
D) Manufacturing costs minus direct materials.

Question 6

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

Accepted Answer

A) $14,400 
B) $28,800 
C) $20,800 
D) $33,600 
A) $14,400 
B) $28,800 
C) $20,800 
D) $33,600

Question 7

Which of the following types of reports is more characteristic of managerial accounting than financial accounting?

Accepted Answer

A) An internal report used by management. 
B) An external report used by investors. 
C) A report prepared according to GAAP. 
D) A report prepared periodically (monthly,quarterly,annually). 
A) An internal report used by management. 
B) An external report used by investors. 
C) A report prepared according to GAAP. 
D) A report prepared periodically (monthly,quarterly,annually).

Question 8

What determines the difference between a product cost and a period cost?

Accepted Answer

A) Whether the cost changes when activity levels change. 
B) Whether the cost is relevant to a particular decision. 
C) Whether the cost can be traced to a specific cost object. 
D) When the cost will be matched against revenue on the income statement. 
A) Whether the cost changes when activity levels change. 
B) Whether the cost is relevant to a particular decision. 
C) Whether the cost can be traced to a specific cost object. 
D) When the cost will be matched against revenue on the income statement.

Question 9

Accounting is primarily intended to facilitate

Accepted Answer

A) starting a business. 
B) decision making. 
C) ethics investigations. 
D) cost tracing. 
A) starting a business. 
B) decision making. 
C) ethics investigations. 
D) cost tracing.

Question 10

For a cost to be relevant,it must

Accepted Answer

A) differ between decision alternatives. 
B) have already been incurred. 
C) not influence a decision. 
D) not be a differential cost. 
A) differ between decision alternatives. 
B) have already been incurred. 
C) not influence a decision. 
D) not be a differential cost.

Question 11

Product costs are reported

Accepted Answer

A) only on the balance sheet. 
B) only on the income statement. 
C) on the balance sheet before goods are sold,and on the income statement after goods are sold. 
D) on the income statement before goods are sold,and on the balance sheet after goods are solD.Product costs are counted as inventory (an asset)until the product is sold,at which point they are reported as Cost of Goods Sold on the income statement. 
A) only on the balance sheet. 
B) only on the income statement. 
C) on the balance sheet before goods are sold,and on the income statement after goods are sold. 
D) on the income statement before goods are sold,and on the balance sheet after goods are solD.Product costs are counted as inventory (an asset)until the product is sold,at which point they are reported as Cost of Goods Sold on the income statement.

Question 12

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. 
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.

Question 13

Which of the following describes one of the Directing/Leading functions of management?

Accepted Answer

A) Setting short and long-term objectives 
B) Comparing actual to budgeted results and taking corrective action 
C) Taking actions to implement the plan 
D) Arranging the necessary resources to carry out the plan 
A) Setting short and long-term objectives 
B) Comparing actual to budgeted results and taking corrective action 
C) Taking actions to implement the plan 
D) Arranging the necessary resources to carry out the plan

Question 14

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 opportunity cost of mowing lawns?

Accepted Answer

A) Cash paid for gas to run the lawnmower. 
B) The time spent mowing the lawns. 
C) The wages he could have earned working at the grocery store. 
D) Depreciation on the lawnmower. 
A) Cash paid for gas to run the lawnmower. 
B) The time spent mowing the lawns. 
C) The wages he could have earned working at the grocery store. 
D) Depreciation on the lawnmower.

Question 15

Which of the following is an indirect cost of manufacturing a table made of wood and glass,for a firm that manufactures furniture?

Accepted Answer

A) The cost of the wood in the table. 
B) The cost of the labor used to assemble the table. 
C) The cost of the glass in the table. 
D) The cost of rent on the factory where the table is manufactureD.Costs that cannot be traced to a specific cost object,or that are not worth the effort of tracing,are indirect costs,such as the cost of rent on the factory. 
A) The cost of the wood in the table. 
B) The cost of the labor used to assemble the table. 
C) The cost of the glass in the table. 
D) The cost of rent on the factory where the table is manufactureD.Costs that cannot be traced to a specific cost object,or that are not worth the effort of tracing,are indirect costs,such as the cost of rent on the factory.

Question 16

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. 
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.

Question 17

Manufacturing costs are

Accepted Answer

A) always relevant. 
B) always fixed. 
C) the costs incurred to produce a final product. 
D) split into prime costs and conversion costs. 
A) always relevant. 
B) always fixed. 
C) the costs incurred to produce a final product. 
D) split into prime costs and conversion costs.

Question 18

Properly applied,ethics provide a clear right or wrong answer to the business situations facing accountants and managers.Ethics refers to the standards of conduct for judging right from wrong,honest from dishonest,and fair from unfair.

Accepted Answer

A) True 
 B)False

Question 19

Financial accounting information is generally used exclusively by internal parties such as managers.Financial accounting information is used by external parties;managerial accounting information is used by internal business owners and manager.

Accepted Answer

A) True 
 B)False

Question 20

Costs that can be traced to a specific cost object are

Accepted Answer

A) opportunity costs. 
B) direct costs. 
C) indirect costs. 
D) irrelevant costs. 
A) opportunity costs. 
B) direct costs. 
C) indirect costs. 
D) irrelevant costs.

Variable costs are

All manufacturing costs are treated as product costs.GAAP requires that all manufacturing costs be treated as product costs,or costs that are assigned to the product as it is being manufactured.

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

Which of the following statements concerning costs is incorrect?

Prime costs are the same as

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

Which of the following types of reports is more characteristic of managerial accounting than financial accounting?

What determines the difference between a product cost and a period cost?

Accounting is primarily intended to facilitate

For a cost to be relevant,it must

Product costs are reported

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

Which of the following describes one of the Directing/Leading functions of management?

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 opportunity cost of mowing lawns?

Which of the following is an indirect cost of manufacturing a table made of wood and glass,for a firm that manufactures furniture?

What is the primary goal of accounting?

Manufacturing costs are

Properly applied,ethics provide a clear right or wrong answer to the business situations facing accountants and managers.Ethics refers to the standards of conduct for judging right from wrong,honest from dishonest,and fair from unfair.

Financial accounting information is generally used exclusively by internal parties such as managers.Financial accounting information is used by external parties;managerial accounting information is used by internal business owners and manager.

Costs that can be traced to a specific cost object are

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

Variable costs are

All manufacturing costs are treated as product costs.GAAP requires that all manufacturing costs be treated as product costs,or costs that are assigned to the product as it is being manufactured.

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

Which of the following statements concerning costs is incorrect?

Prime costs are the same as

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

Which of the following types of reports is more characteristic of managerial accounting than financial accounting?

What determines the difference between a product cost and a period cost?

Accounting is primarily intended to facilitate

For a cost to be relevant,it must

Product costs are reported

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

Which of the following describes one of the Directing/Leading functions of management?

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 opportunity cost of mowing lawns?

Which of the following is an indirect cost of manufacturing a table made of wood and glass,for a firm that manufactures furniture?

What is the primary goal of accounting?

Manufacturing costs are

Properly applied,ethics provide a clear right or wrong answer to the business situations facing accountants and managers.Ethics refers to the standards of conduct for judging right from wrong,honest from dishonest,and fair from unfair.

Financial accounting information is generally used exclusively by internal parties such as managers.Financial accounting information is used by external parties;managerial accounting information is used by internal business owners and manager.

Costs that can be traced to a specific cost object are

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