Question 1

Which of the following describes the Control function within the management cycle?

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 2

Adobe Music Company, which manufactures wooden and metal xylophones, incurred costs for the following items. Place an "X" in the appropriate column to indicate whether they are direct or indirect, and whether they are variable or fixed. The cost object is the xylophones manufactured by the company.

Accepted Answer

The answer of Adobe Music Company, which manufactures wooden and...

Question 3

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 4

Parkside Rentals, a firm that rents tuxedos for special events, incurred costs for the following items. Place an "X" in the appropriate column to indicate whether they are direct or indirect, and whether they are variable or fixed. The cost object is tuxedo rentals.

Accepted Answer

The answer of Parkside Rentals, a firm that rents tuxedos...

Question 5

The Sarbanes-Oxley Act of 2002 places full responsibility on the board of directors for the accuracy of the reporting system

Accepted Answer

A) True 
 B)False

Question 6

A sustainable business is one with the ability to meet the needs of today without sacrificing the ability of future generations to meet their own needs

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

Fixed 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, in total, 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, in total, no matter the activity level.

Question 10

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 11

An opportunity cost is 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)  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 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

Which of the following functions of management involves taking corrective action if needed?

Accepted Answer

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

Question 15

Pinnacle Manufacturing manufactures custom wheel covers. For each cost listed below, place an "X" in all of the appropriate categories.

Accepted Answer

The answer of Pinnacle Manufacturing manufactures custom wheel covers. For...

Question 16

Financial accounting information is reported for the company as a whole

Accepted Answer

A) True 
 B)False

Question 17

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 18

Which of the following changes introduced by the Sarbanes-Oxley Act is not one intended to encourage good character?

Accepted Answer

A)  Anonymous tip lines 
B)  Whistle-blower protection 
C)  Code of ethics 
D)  Stiffer fines and prison terms 
A)  Anonymous tip lines 
B)  Whistle-blower protection 
C)  Code of ethics 
D)  Stiffer fines and prison terms

Question 19

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)  Industry 
B)  Opportunity 
C)  Character 
D)  Incentives 
A)  Industry 
B)  Opportunity 
C)  Character 
D)  Incentives

Question 20

Pretend you are a junior managerial accountant. Your supervisor has no knowledge of sustainability accounting. All of the following statements would be convincing arguments to advocate for the importance of sustainability accounting, except one. Which one?

Accepted Answer

A)  Sustainability accounting reflects the changing nature of accountability. 
B)  Companies are only accountable to shareholders… And shareholders care about sustainability. 
C)  Companies are accountable to the world at large, not simply to shareholders. 
D)  Sustainability accounting does not replace the emphasis on financial results; rather it complements financial strength in building a strong company for the future. 
A)  Sustainability accounting reflects the changing nature of accountability. 
B)  Companies are only accountable to shareholders… And shareholders care about sustainability. 
C)  Companies are accountable to the world at large, not simply to shareholders. 
D)  Sustainability accounting does not replace the emphasis on financial results; rather it complements financial strength in building a strong company for the future.

Which of the following describes the Control function within the management cycle?

Adobe Music Company, which manufactures wooden and metal xylophones, incurred costs for the following items. Place an "X" in the appropriate column to indicate whether they are direct or indirect, and whether they are variable or fixed. The cost object is the xylophones manufactured by the company.

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

Parkside Rentals, a firm that rents tuxedos for special events, incurred costs for the following items. Place an "X" in the appropriate column to indicate whether they are direct or indirect, and whether they are variable or fixed. The cost object is tuxedo rentals.

The Sarbanes-Oxley Act of 2002 places full responsibility on the board of directors for the accuracy of the reporting system

A sustainable business is one with the ability to meet the needs of today without sacrificing the ability of future generations to meet their own needs

Prime costs are the same as:

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

Fixed costs are:

Variable costs are:

An opportunity cost is 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?

Which of the following functions of management involves taking corrective action if needed?

Pinnacle Manufacturing manufactures custom wheel covers. For each cost listed below, place an "X" in all of the appropriate categories.

Financial accounting information is reported for the company as a whole

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

Which of the following changes introduced by the Sarbanes-Oxley Act is not one intended to encourage good character?

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

Pretend you are a junior managerial accountant. Your supervisor has no knowledge of sustainability accounting. All of the following statements would be convincing arguments to advocate for the importance of sustainability accounting, except one. Which one?

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

Which of the following describes the Control function within the management cycle?

Adobe Music Company, which manufactures wooden and metal xylophones, incurred costs for the following items. Place an "X" in the appropriate column to indicate whether they are direct or indirect, and whether they are variable or fixed. The cost object is the xylophones manufactured by the company.

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

Parkside Rentals, a firm that rents tuxedos for special events, incurred costs for the following items. Place an "X" in the appropriate column to indicate whether they are direct or indirect, and whether they are variable or fixed. The cost object is tuxedo rentals.

The Sarbanes-Oxley Act of 2002 places full responsibility on the board of directors for the accuracy of the reporting system

A sustainable business is one with the ability to meet the needs of today without sacrificing the ability of future generations to meet their own needs

Prime costs are the same as:

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

Fixed costs are:

Variable costs are:

An opportunity cost is 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?

Which of the following functions of management involves taking corrective action if needed?

Pinnacle Manufacturing manufactures custom wheel covers. For each cost listed below, place an "X" in all of the appropriate categories.

Financial accounting information is reported for the company as a whole

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

Which of the following changes introduced by the Sarbanes-Oxley Act is not one intended to encourage good character?

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

Pretend you are a junior managerial accountant. Your supervisor has no knowledge of sustainability accounting. All of the following statements would be convincing arguments to advocate for the importance of sustainability accounting, except one. Which one?

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