Question 1

The Sarbanes-Oxley Act places responsibility for the accuracy of the reporting system on

Accepted Answer

A) Accounting managers. 
B) Marketing managers. 
C) Top executives. 
D) All managers. 
A) Accounting managers. 
B) Marketing managers. 
C) Top executives. 
D) All managers.

Question 2

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

Accepted Answer

A) Financial reports are prepared according to GAAP. 
B) Information is used primarily by internal parties. 
C) Information is objective,reliable and historical. 
D) Reports are prepared periodically. 
A) Financial reports are prepared according to GAAP. 
B) Information is used primarily by internal parties. 
C) Information is objective,reliable and historical. 
D) Reports are prepared periodically.

Question 3

Which of the following is a requirement under the Sarbanes-Oxley Act?

Accepted Answer

A) Financial statements must be audited by a Big Four accounting firm. 
B) Management must issue a report that indicates whether the financial statements are free of error. 
C) Management must conduct a review of the company's internal control system. 
D) Background checks must be performed on all employees. 
A) Financial statements must be audited by a Big Four accounting firm. 
B) Management must issue a report that indicates whether the financial statements are free of error. 
C) Management must conduct a review of the company's internal control system. 
D) Background checks must be performed on all employees.

Question 4

For a cost to be relevant,it must meet which of the following criteria?

Accepted Answer

A) It must not differ between the decision alternatives and it must be incurred in the future rather than in the past. 
B) It must differ between the decision alternatives and it must be incurred in the future rather than in the past. 
C) It must not differ between the decision alternatives and it must have occurred in the past rather than in the future. 
D) It must differ between the decision alternatives and it must have occurred in the past rather than in the future. 
A) It must not differ between the decision alternatives and it must be incurred in the future rather than in the past. 
B) It must differ between the decision alternatives and it must be incurred in the future rather than in the past. 
C) It must not differ between the decision alternatives and it must have occurred in the past rather than in the future. 
D) It must differ between the decision alternatives and it must have occurred in the past rather than in the future.

Question 5

Product costs are

Accepted Answer

A) expensed on the income statement when incurred. 
B) treated as an asset and depreciated. 
C) inventoried until the units are sold. 
D) considered current liabilities until paiD.Product costs are counted as part of the inventory until the product is sold. 
A) expensed on the income statement when incurred. 
B) treated as an asset and depreciated. 
C) inventoried until the units are sold. 
D) considered current liabilities until paiD.Product costs are counted as part of the inventory until the product is sold.

Question 6

Fixed costs stay the same,on a per-unit basis,as activity level changes.Fixed costs stay the same,in total,as activity level changes.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

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

Question 8

Which of the following is not a provision of the Sarbanes-Oxley Act?

Accepted Answer

A) Executives can avoid penalties for fraud by declaring personal bankruptcy. 
B) Stiffer penalties for fraud in terms of monetary fines and jail time. 
C) Public companies must adopt a code of ethics for senior financial officers. 
D) Management must issue a report that indicates whether internal controls are effective at preventing errors and frauD.Executives cannot avoid monetary penalties by declaring personal bankruptcy. 
A) Executives can avoid penalties for fraud by declaring personal bankruptcy. 
B) Stiffer penalties for fraud in terms of monetary fines and jail time. 
C) Public companies must adopt a code of ethics for senior financial officers. 
D) Management must issue a report that indicates whether internal controls are effective at preventing errors and frauD.Executives cannot avoid monetary penalties by declaring personal bankruptcy.

Question 9

Costs can be sorted or categorized in a number of ways including relevant or irrelevant costs.One of the ways that costs can be sorted or categorized is by whether they are relevant or irrelevant.

Accepted Answer

A) True 
 B)False

Question 10

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. 
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.

Question 11

Opportunity cost is the cost of not doing something.An opportunity cost is the foregone benefit of the path not taken - the cost of not doing something.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) Information is used by internal parties. 
B) Information is subjective,relevant,future-oriented. 
C) Reports are prepared as needed. 
D) Reports are prepared according to GAAP. 
A) Information is used by internal parties. 
B) Information is subjective,relevant,future-oriented. 
C) Reports are prepared as needed. 
D) Reports are prepared according to GAAP.

Question 13

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

Question 14

The directing/leading function provides motivation to achieve results.Directing/leading involves putting the plan into action,and motivating others to work toward the plan's success.

Accepted Answer

A) True 
 B)False

Question 15

Managerial accounting information includes such items as budgets,performance evaluations,and cost reports.Managerial accounting is used by internal business owners and managers,who need internal information such as budgets,performance evaluations,and cost reports.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not a manufacturing cost?

Accepted Answer

A) Raw materials cost. 
B) Marketing cost. 
C) Direct labor cost. 
D) Manufacturing overhead cost. 
A) Raw materials cost. 
B) Marketing cost. 
C) Direct labor cost. 
D) Manufacturing overhead cost.

Question 17

A direct cost is one which

Accepted Answer

A) involves an actual outlay of cash for a specific cost object. 
B) can be traced to a specific cost object. 
C) cannot be traced to a specific cost object. 
D) is not worth the effort of tracing to a specific cost object. 
A) involves an actual outlay of cash for a specific cost object. 
B) can be traced to a specific cost object. 
C) cannot be traced to a specific cost object. 
D) is not worth the effort of tracing to a specific cost object.

Question 18

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

Accepted Answer

A) Information is used by internal parties. 
B) Information is subjective,relevant,future-oriented. 
C) Reports are prepared as needed. 
D) Information is reported for the company as a whole. 
A) Information is used by internal parties. 
B) Information is subjective,relevant,future-oriented. 
C) Reports are prepared as needed. 
D) Information is reported for the company as a whole.

Question 19

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. 
A) fixed cost. 
B) direct cost. 
C) variable cost. 
D) indirect cost.

Question 20

The cost of not doing something is a(n)

Accepted Answer

A) out-of-pocket cost. 
B) opportunity cost. 
C) direct cost. 
D) cost object. 
A) out-of-pocket cost. 
B) opportunity cost. 
C) direct cost. 
D) cost object.

The Sarbanes-Oxley Act places responsibility for the accuracy of the reporting system on

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

Which of the following is a requirement under the Sarbanes-Oxley Act?

For a cost to be relevant,it must meet which of the following criteria?

Product costs are

Fixed costs stay the same,on a per-unit basis,as activity level changes.Fixed costs stay the same,in total,as activity level changes.

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

Which of the following is not a provision of the Sarbanes-Oxley Act?

Costs can be sorted or categorized in a number of ways including relevant or irrelevant costs.One of the ways that costs can be sorted or categorized is by whether they are relevant or irrelevant.

A relevant cost is a cost that

Opportunity cost is the cost of not doing something.An opportunity cost is the foregone benefit of the path not taken - the cost of not doing something.

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

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

The directing/leading function provides motivation to achieve results.Directing/leading involves putting the plan into action,and motivating others to work toward the plan's success.

Managerial accounting information includes such items as budgets,performance evaluations,and cost reports.Managerial accounting is used by internal business owners and managers,who need internal information such as budgets,performance evaluations,and cost reports.

Which of the following is not a manufacturing cost?

A direct cost is one which

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

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)

The cost of not doing something is a(n)

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

The Sarbanes-Oxley Act places responsibility for the accuracy of the reporting system on

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

Which of the following is a requirement under the Sarbanes-Oxley Act?

For a cost to be relevant,it must meet which of the following criteria?

Product costs are

Fixed costs stay the same,on a per-unit basis,as activity level changes.Fixed costs stay the same,in total,as activity level changes.

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

Which of the following is not a provision of the Sarbanes-Oxley Act?

Costs can be sorted or categorized in a number of ways including relevant or irrelevant costs.One of the ways that costs can be sorted or categorized is by whether they are relevant or irrelevant.

A relevant cost is a cost that

Opportunity cost is the cost of not doing something.An opportunity cost is the foregone benefit of the path not taken - the cost of not doing something.

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

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

The directing/leading function provides motivation to achieve results.Directing/leading involves putting the plan into action,and motivating others to work toward the plan's success.

Managerial accounting information includes such items as budgets,performance evaluations,and cost reports.Managerial accounting is used by internal business owners and managers,who need internal information such as budgets,performance evaluations,and cost reports.

Which of the following is not a manufacturing cost?

A direct cost is one which

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

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)

The cost of not doing something is a(n)

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