Question 1

Fixed costs stay the same,in total,as activity level changes.This is the definition of a fixed cost.

Accepted Answer

A) True 
 B)False

Question 2

An out-of-pocket cost involves which of the following?

Accepted Answer

A) Choosing to do one thing instead of another. 
B) Tracing the cost directly to a cost object. 
C) An actual outlay of cash. 
D) Determining how the cost changes with a change in activity level. 
A) Choosing to do one thing instead of another. 
B) Tracing the cost directly to a cost object. 
C) An actual outlay of cash. 
D) Determining how the cost changes with a change in activity level.

Question 3

What determines the difference between a direct and an indirect cost?

Accepted Answer

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

Question 4

Which of the following is not one of the factors affecting the accounting reporting environment focused on by the Sarbanes-Oxley Act?

Accepted Answer

A) Line of business 
B) Opportunity 
C) Character 
D) Incentives 
A) Line of business 
B) Opportunity 
C) Character 
D) Incentives

Question 5

Which of the following changes introduced by the Sarbanes-Oxley Act is intended to counteract incentives for fraud?

Accepted Answer

A) Stronger oversight by directors 
B) Code of ethics 
C) Stiffer fines and prison terms 
D) Anonymous tip lines 
A) Stronger oversight by directors 
B) Code of ethics 
C) Stiffer fines and prison terms 
D) Anonymous tip lines

Question 6

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

Accepted Answer

A) Information is reported at the decision making level. 
B) Information is used by external parties. 
C) Information is objective,reliable and historical. 
D) Reports are prepared periodically. 
A) Information is reported at the decision making level. 
B) Information is used by external parties. 
C) Information is objective,reliable and historical. 
D) Reports are prepared periodically.

Question 7

Managers of small,private corporations use managerial accounting information whereas managers of large,public corporations use financial accounting information.Managerial accounting information is used by managers in all types of organizations: large and small,public and private,profit and nonprofit.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following costs is not relevant to the decision whether to replace an old computer with a new one?

Accepted Answer

A) The cost of the new computer. 
B) The cost of the old computer. 
C) The cost of a service plan on the new computer. 
D) The cost to repair the old computer if a new computer is not purchaseD.The cost of the old computer is a sunk cost. 
A) The cost of the new computer. 
B) The cost of the old computer. 
C) The cost of a service plan on the new computer. 
D) The cost to repair the old computer if a new computer is not purchaseD.The cost of the old computer is a sunk cost.

Question 9

The control function is comparing actual with budgeted results and taking corrective action when needed.This is the definition of the control function.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following functions of management involves providing feedback for future plans?

Accepted Answer

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

Question 11

A manufacturing firm reports only manufacturing costs.A manufacturing firm reports both manufacturing and nonmanufacturing costs.

Accepted Answer

A) True 
 B)False

Question 12

Product costs are sometimes called

Accepted Answer

A) relevant costs. 
B) sunk costs. 
C) differential costs. 
D) inventoriable costs. 
A) relevant costs. 
B) sunk costs. 
C) differential costs. 
D) inventoriable costs.

Question 13

Conversion costs are the costs to convert direct materials into the finished product.Direct labor and manufacturing overhead are referred to as conversion cost - that is,the total cost required to convert direct materials into the finished product.

Accepted Answer

A) True 
 B)False

Fixed costs stay the same,in total,as activity level changes.This is the definition of a fixed cost.

An out-of-pocket cost involves which of the following?

What determines the difference between a direct and an indirect cost?

Which of the following is not one of the factors affecting the accounting reporting environment focused on by the Sarbanes-Oxley Act?

Which of the following changes introduced by the Sarbanes-Oxley Act is intended to counteract incentives for fraud?

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

Which of the following costs is not relevant to the decision whether to replace an old computer with a new one?

The control function is comparing actual with budgeted results and taking corrective action when needed.This is the definition of the control function.

Which of the following functions of management involves providing feedback for future plans?

A manufacturing firm reports only manufacturing costs.A manufacturing firm reports both manufacturing and nonmanufacturing costs.

Product costs are sometimes called

Conversion costs are the costs to convert direct materials into the finished product.Direct labor and manufacturing overhead are referred to as conversion cost - that is,the total cost required to convert direct materials into the 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

Fixed costs stay the same,in total,as activity level changes.This is the definition of a fixed cost.

An out-of-pocket cost involves which of the following?

What determines the difference between a direct and an indirect cost?

Which of the following is not one of the factors affecting the accounting reporting environment focused on by the Sarbanes-Oxley Act?

Which of the following changes introduced by the Sarbanes-Oxley Act is intended to counteract incentives for fraud?

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

Which of the following costs is not relevant to the decision whether to replace an old computer with a new one?

The control function is comparing actual with budgeted results and taking corrective action when needed.This is the definition of the control function.

Which of the following functions of management involves providing feedback for future plans?

A manufacturing firm reports only manufacturing costs.A manufacturing firm reports both manufacturing and nonmanufacturing costs.

Product costs are sometimes called

Conversion costs are the costs to convert direct materials into the finished product.Direct labor and manufacturing overhead are referred to as conversion cost - that is,the total cost required to convert direct materials into the 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