Exam 1: Managerial Accounting in the Information Age

Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold. Wings, breading, and sauce \ 4,900 Direct labor (Variable) 3,500 Rent 1,100 Depreciation 900 Other fixed costs 400 Each wing sells for $0.80 each.What is the budgeted total variable cost?

The U.S.government has charged the Institute of Management Accountants with primary responsibility for developing ethics laws that businesses must follow.

Which one of the following is most likely to make use of Ralston Enterprises' managerial accounting information?

The Institute of Management Accountants (IMA)

Equipment depreciation is generally a controllable cost for a factory department supervisor.

Businesses sometimes share sales databases with suppliers so suppliers can respond more quickly.

Kilwin's Candies produced and sold 600 boxes of chocolate covered popcorn last month and had total variable costs of $2,100 that reflected the costs of chocolate and popcorn (ingredients).Each box of popcorn sells for $12.00.If production and sales are expected to increase by 10% next month, which of the following statements is true?

Only amounts that can be expressed in dollars and cents can be used in preparing budgets.

A sunk cost is a cost

The goal of managerial accounting is to provide information that managers need for

Which of the following should be considered when making ethical decisions?

Which of the following skills are needed by those who desire a high-level career in management accounting?

Financial accounting stresses accounting concepts and procedures that are relevant to preparing reports for internal users of accounting information.

Customer Relationship Management Systems (CRM) involve activities between companies and its suppliers in an effort to enhance production and delivery of goods to customers.

The treasurer has custody of cash and funds invested in marketable securities.

Enterprise resource planning systems (ERP) often support accounting, human resources, and e-commerce, in addition to production.

Which of the following statements regarding direct and indirect costs is true?

Which of the following would most likely be a Customer Relationship Management System component?

In most companies, the top management accountant is called the

Financial accounting must follow generally accepted accounting principles, whereas managerial accounting stresses information that is useful to managers. 15 Managerial accounting may present more detailed information than financial accounting.