Question 1

For a cost to be relevant, it must be:

Accepted Answer

A)  a differential cost and a sunk cost. 
B)  a differential cost, but not a sunk cost. 
C)  a sunk cost, but not a differential cost. 
D)  neither a differential cost nor a sunk cost. 
A)  a differential cost and a sunk cost. 
B)  a differential cost, but not a sunk cost. 
C)  a sunk cost, but not a differential cost. 
D)  neither a differential cost nor a sunk cost. B

Question 2

Elektra Enterprises manufactures custom boat covers. For each cost listed below, place an "X" in all of the appropriate categories.

Accepted Answer

The answer of Elektra Enterprises manufactures custom boat covers. For...

Question 3

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. A

Question 4

Quail Company builds snowboards. Quail Company has reported the following costs for the previous year. Assume no production inventories.   Compute the following:
a. Direct material costs
b. Direct labor cost
c. Manufacturing overhead
d. Total manufacturing cost
e. Prime cost
f. Conversion cost
g. Total period cost

Accepted Answer

a. Direct material costs: $154,000 = $11

Question 5

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 6

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

Accepted Answer

The answer of Stetson Manufacturing builds custom wooden cabinets. Classify...

Question 7

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 8

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

Question 9

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 10

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 11

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

Accepted Answer

The answer of For each of the following independent cases,...

Question 12

Salon de Beauty, a local hair salon, incurred the following costs last month.   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 13

Many organizations are building sustainable business practices into their strategies, including 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. 
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.

Question 14

Which of the following cannot be an out-of-pocket cost?

Accepted Answer

A)  A direct cost. 
B)  An opportunity cost. 
C)  A variable cost. 
D)  A period cost. 
A)  A direct cost. 
B)  An opportunity cost. 
C)  A variable cost. 
D)  A period cost.

Question 15

Managers must direct, lead and motivate during the implementation function

Accepted Answer

A) True 
 B)False

Question 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

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 decrease the incentive to commit fraud. 
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 decrease the incentive to commit fraud. 
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 19

Costs that are not worth the effort to trace 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.

Question 20

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)  Implementing 
C)  Reviewing 
D)  Control 
A)  Planning 
B)  Implementing 
C)  Reviewing 
D)  Control

For a cost to be relevant, it must be:

Elektra Enterprises manufactures custom boat covers. For each cost listed below, place an "X" in all of the appropriate categories.

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

Which of the following statements concerning costs is incorrect?

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

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?

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

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):

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

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

Salon de Beauty, a local hair salon, incurred the following costs last month. 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

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

Which of the following cannot be an out-of-pocket cost?

Managers must direct, lead and motivate during the implementation function

For a cost to be relevant, it must:

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

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

Costs that are not worth the effort to trace to a specific cost object are:

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

Job-Order Costing

Process Costing

Activity-Based Cost Management

Cost Behavior and Estimation

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgeting and Planning

Standard Costing and Variances

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 1: Introduction to Managerial Accounting

For a cost to be relevant, it must be:

Elektra Enterprises manufactures custom boat covers. For each cost listed below, place an "X" in all of the appropriate categories.

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

Which of the following statements concerning costs is incorrect?

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

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?

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

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):

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

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

Salon de Beauty, a local hair salon, incurred the following costs last month. 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

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

Which of the following cannot be an out-of-pocket cost?

Managers must direct, lead and motivate during the implementation function

For a cost to be relevant, it must:

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

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

Costs that are not worth the effort to trace to a specific cost object are:

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

Job-Order Costing

Process Costing

Activity-Based Cost Management

Cost Behavior and Estimation

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgeting and Planning

Standard Costing and Variances

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Financial Statement Analysis

Filters