Question 1

An opportunity cost is:

Accepted Answer

A) the foregone benefit of the path not taken. 
B) an actual outlay of cash. 
C) the initial investment required to pursue an opportunity. 
D) a cost that cannot be traced to a specific cost object. 
A) the foregone benefit of the path not taken. 
B) an actual outlay of cash. 
C) the initial investment required to pursue an opportunity. 
D) a cost that cannot be traced to a specific cost object.

Question 2

Mariposa Manufacturing builds custom wooden cabinets.Mariposa Manufacturing 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 materials cost: $151,000 = $34,

Question 3

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 4

Which of the following does not describe the Implementing function within the management cycle?

Accepted Answer

A) Leading,directing,and motivating others to achieve the plan's goals 
B) Arranging the necessary resources to carry out the plan 
C) Taking actions to implement the plan 
D) Setting short- and long-term objectives 
A) Leading,directing,and motivating others to achieve the plan's goals 
B) Arranging the necessary resources to carry out the plan 
C) Taking actions to implement the plan 
D) Setting short- and long-term objectives

Question 5

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 6

Descriptive analytics uses patterns and insights from collected data to show what has happened.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) $70,400 
B) $60,800 
C) $91,200 
D) $57,600 
A) $70,400 
B) $60,800 
C) $91,200 
D) $57,600

Question 8

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 9

Which of the following is not true about how the Sarbanes-Oxley Act counteracts incentives for committing fraud?

Accepted Answer

A) It provides for stiffer monetary penalties. 
B) It increases the maximum jail sentence for fraudulent reporting. 
C) It removes legal protection from whistleblowers. 
D) It provides that violators must repay any money obtained via fraud and pay fines. 
A) It provides for stiffer monetary penalties. 
B) It increases the maximum jail sentence for fraudulent reporting. 
C) It removes legal protection from whistleblowers. 
D) It provides that violators must repay any money obtained via fraud and pay fines.

Question 10

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. 
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.

Question 11

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

Accepted Answer

@#IMG-DLM& Prime costs are the total of direct mat

Question 12

All manufacturing costs are inventoriable costs.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

@#IMG-DLM& Prime costs are the total of direct mat

Question 14

Financial accounting information is reported for the company as a whole.

Accepted Answer

A) True 
 B)False

Question 15

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 16

When are period costs counted as inventory?

Accepted Answer

A) Before products are sold. 
B) After products are sold. 
C) After products are completed,but before they are sold. 
D) Never. 
A) Before products are sold. 
B) After products are sold. 
C) After products are completed,but before they are sold. 
D) Never.

Question 17

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.

Question 18

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 19

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

Accepted Answer

@#IMG-DLM& Costs that can be traced directly to a

Question 20

A cost that has already been incurred is called a(n)________ cost.

Accepted Answer

A) indirect 
B) sunk 
C) relevant 
D) opportunity 
A) indirect 
B) sunk 
C) relevant 
D) opportunity

An opportunity cost is:

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

Which of the following does not describe the Implementing function within the management cycle?

Manufacturing costs are:

Descriptive analytics uses patterns and insights from collected data to show what has happened.

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

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

Which of the following is not true about how the Sarbanes-Oxley Act counteracts incentives for committing fraud?

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

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

All manufacturing costs are inventoriable costs.

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

Financial accounting information is reported for the company as a whole.

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

When are period costs counted as inventory?

The cost of not doing something is a(n):

Which of the following statements concerning costs is incorrect?

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

A cost that has already been incurred is called a(n)________ cost.

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 Variance Analysis

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

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Exam 1: Introduction to Managerial Accounting

An opportunity cost is:

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

Which of the following does not describe the Implementing function within the management cycle?

Manufacturing costs are:

Descriptive analytics uses patterns and insights from collected data to show what has happened.

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

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

Which of the following is not true about how the Sarbanes-Oxley Act counteracts incentives for committing fraud?

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

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

All manufacturing costs are inventoriable costs.

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

Financial accounting information is reported for the company as a whole.

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

When are period costs counted as inventory?

The cost of not doing something is a(n):

Which of the following statements concerning costs is incorrect?

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

A cost that has already been incurred is called a(n)________ cost.

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 Variance Analysis

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters