Question 1

Costs that can be traced 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 2

All manufacturing costs are treated as product costs.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following changes introduced by the Sarbanes-Oxley Act is not one intended to reduce opportunities for error and fraud?

Accepted Answer

A) Internal control report from management 
B) Code of ethics 
C) Stronger oversight by directors 
D) Internal control audit by external auditors 
A) Internal control report from management 
B) Code of ethics 
C) Stronger oversight by directors 
D) Internal control audit by external auditors

Question 4

The requirement of the Sarbanes-Oxley Act that requires management to issue a report on internal controls places responsibility for the accuracy of the reporting system on:

Accepted Answer

A) accounting managers. 
B) marketing managers. 
C) production managers. 
D) all managers. 
A) accounting managers. 
B) marketing managers. 
C) production managers. 
D) all managers.

Question 5

Recommending a course of action based upon patterns and insights from data is referred to as:

Accepted Answer

A) predictive analytics. 
B) prescriptive analytics. 
C) descriptive analytics. 
D) diagnostic analytics. 
A) predictive analytics. 
B) prescriptive analytics. 
C) descriptive analytics. 
D) diagnostic analytics.

Question 6

The term "Big data" refers to the volume,velocity and veracity of data.

Accepted Answer

A) True 
 B)False

Question 7

Variable costs are always direct costs.

Accepted Answer

A) True 
 B)False

Question 8

Financial accounting information is generally used exclusively by internal parties such as managers.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an indirect cost of manufacturing a table made of wood and glass for a firm that manufactures furniture?

Accepted Answer

A) The cost of the wood in the table. 
B) The cost of the labor used to assemble the table. 
C) The cost of the glass in the table. 
D) The cost of rent on the factory where the table is manufactured. 
A) The cost of the wood in the table. 
B) The cost of the labor used to assemble the table. 
C) The cost of the glass in the table. 
D) The cost of rent on the factory where the table is manufactured.

Question 10

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 11

Analytics provides meaningful patterns and insights from data useful for all of the following except:

Accepted Answer

A) managing resources. 
B) enhancing customer service. 
C) pursuing other business opportunities. 
D) preparing financial statements in accordance with GAAP. 
A) managing resources. 
B) enhancing customer service. 
C) pursuing other business opportunities. 
D) preparing financial statements in accordance with GAAP.

Question 12

GAAP reporting rules require that all manufacturing costs be treated as:

Accepted Answer

A) period costs. 
B) product costs. 
C) value-added costs. 
D) relevant costs. 
A) period costs. 
B) product costs. 
C) value-added costs. 
D) relevant costs.

Question 13

A direct cost is one that:

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 14

Whether a cost is treated as direct or indirect depends on whether tracing the cost is both possible and feasible.

Accepted Answer

A) True 
 B)False

Question 15

Managerial accounting,as compared to financial accounting,is primarily intended to facilitate:

Accepted Answer

A) an understanding of GAAP. 
B) making decisions with timely,relevant information. 
C) conducting ethics investigations under SOX. 
D) reporting results to shareholders. 
A) an understanding of GAAP. 
B) making decisions with timely,relevant information. 
C) conducting ethics investigations under SOX. 
D) reporting results to shareholders.

Question 16

"Ethics" refers to all of the following except:

Accepted Answer

A) the standards of conduct for judging fair from unfair. 
B) the standards of conduct for judging right from wrong. 
C) the standards of conduct for judging opportunity from incentives. 
D) the standards of conduct for judging honest from dishonest. 
A) the standards of conduct for judging fair from unfair. 
B) the standards of conduct for judging right from wrong. 
C) the standards of conduct for judging opportunity from incentives. 
D) the standards of conduct for judging honest from dishonest.

Question 17

Which of the following types of organizations sells goods to the general public?

Accepted Answer

A) Service companies 
B) Manufacturing firms 
C) Merchandising companies 
D) Retailers 
A) Service companies 
B) Manufacturing firms 
C) Merchandising companies 
D) Retailers

Question 18

Indirect 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 19

Which of the following statements is correct?

Accepted Answer

A) A direct cost can be readily traced to a cost object while an indirect cost is traced only to manufacturing costs. 
B) An indirect cost can be readily traced to a cost object while a direct cost is traced only to manufacturing costs. 
C) A direct cost can be traced to a specific cost object,while an indirect cost cannot. 
D) An indirect cost can be traced to a specific cost object,while a direct cost cannot. 
A) A direct cost can be readily traced to a cost object while an indirect cost is traced only to manufacturing costs. 
B) An indirect cost can be readily traced to a cost object while a direct cost is traced only to manufacturing costs. 
C) A direct cost can be traced to a specific cost object,while an indirect cost cannot. 
D) An indirect cost can be traced to a specific cost object,while a direct cost cannot.

Question 20

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.

Costs that can be traced to a specific cost object are:

All manufacturing costs are treated as product costs.

Which of the following changes introduced by the Sarbanes-Oxley Act is not one intended to reduce opportunities for error and fraud?

The requirement of the Sarbanes-Oxley Act that requires management to issue a report on internal controls places responsibility for the accuracy of the reporting system on:

Recommending a course of action based upon patterns and insights from data is referred to as:

The term "Big data" refers to the volume,velocity and veracity of data.

Variable costs are always direct costs.

Financial accounting information is generally used exclusively by internal parties such as managers.

Which of the following is an indirect cost of manufacturing a table made of wood and glass for a firm that manufactures furniture?

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

Analytics provides meaningful patterns and insights from data useful for all of the following except:

GAAP reporting rules require that all manufacturing costs be treated as:

A direct cost is one that:

Whether a cost is treated as direct or indirect depends on whether tracing the cost is both possible and feasible.

Managerial accounting,as compared to financial accounting,is primarily intended to facilitate:

"Ethics" refers to all of the following except:

Which of the following types of organizations sells goods to the general public?

Indirect costs are:

Which of the following statements is correct?

For a cost to be relevant,it must:

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

Exam 1: Introduction to Managerial Accounting

Costs that can be traced to a specific cost object are:

All manufacturing costs are treated as product costs.

Which of the following changes introduced by the Sarbanes-Oxley Act is not one intended to reduce opportunities for error and fraud?

The requirement of the Sarbanes-Oxley Act that requires management to issue a report on internal controls places responsibility for the accuracy of the reporting system on:

Recommending a course of action based upon patterns and insights from data is referred to as:

The term "Big data" refers to the volume,velocity and veracity of data.

Variable costs are always direct costs.

Financial accounting information is generally used exclusively by internal parties such as managers.

Which of the following is an indirect cost of manufacturing a table made of wood and glass for a firm that manufactures furniture?

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

Analytics provides meaningful patterns and insights from data useful for all of the following except:

GAAP reporting rules require that all manufacturing costs be treated as:

A direct cost is one that:

Whether a cost is treated as direct or indirect depends on whether tracing the cost is both possible and feasible.

Managerial accounting,as compared to financial accounting,is primarily intended to facilitate:

"Ethics" refers to all of the following except:

Which of the following types of organizations sells goods to the general public?

Indirect costs are:

Which of the following statements is correct?

For a cost to be relevant,it must:

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