Question 1

Which of the following is a benefit given up when one decision alternative is selected over another?

Accepted Answer

A) Sunk cost 
B) Controllable cost 
C) Opportunity cost 
D) Incremental cost 
A) Sunk cost 
B) Controllable cost 
C) Opportunity cost 
D) Incremental cost

Question 2

Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold. $$\begin{array}{l}
\text { Wings, breading, and }\
\begin{array} { l r } 
\text { Sauce } & \$ 4,900 \
\text { Direct labor (Variable) } & 3,500 \
\text { Rent } & 1,100 \
\text { Depreciation } & 900 \
\text { Other fixed costs } & 400
\end{array}
\end{array}$$ Each wing sells for $0.80 each.How much is the budgeted variable cost per unit?

Accepted Answer

A) $0.35 
B) $0.45 
C) $0.80 
D) None of these answer choices are correct. 
A) $0.35 
B) $0.45 
C) $0.80 
D) None of these answer choices are correct.

Question 3

Supply chain management systems (SCM) allow suppliers some access to a company's databases so goods can more profitably be delivered to a company's customers.

Accepted Answer

A) True 
 B)False

Question 4

Leah Berry is entering her senior year as an accounting major and has a number of options for her summer break.Her options for the 3-month break follow:
(1) Work full time at a local accounting firm making $3,200 per month.
(2) Take a summer class which will cost $600 and work half time making $1,600 per month.
(3) Take two classes at a cost of $1,200 and not work at all during the summer.
Leah's incremental profit (or loss) if she chooses option 2 over option 1 would be

Accepted Answer

A) ($2,200) per month. 
B) ($1,600) per month. 
C) ($1,000) per month. 
D) $1,000 per month. 
A) ($2,200) per month. 
B) ($1,600) per month. 
C) ($1,000) per month. 
D) $1,000 per month.

Question 5

The financial plans prepared by managerial accountants are referred to as

Accepted Answer

A) budgets. 
B) financial statements. 
C) treasurer's reports. 
D) controller's opinions. 
A) budgets. 
B) financial statements. 
C) treasurer's reports. 
D) controller's opinions.

Question 6

Costs incurred in the past that are not incremental to present decisions are

Accepted Answer

A) fixed costs. 
B) sunk costs. 
C) opportunity costs. 
D) variable costs. 
A) fixed costs. 
B) sunk costs. 
C) opportunity costs. 
D) variable costs.

Question 7

Which of the following is a difference between financial accounting and managerial accounting?

Accepted Answer

A) Managerial accounting is primarily concerned with reporting the past, while financial accounting is more concerned with future decisions that external users may need to make. 
B) Managerial accounting uses monetary and nonmonetary information, whereas financial accounting reports monetary information. 
C) Managerial accounting is primarily concerned with providing information for external users while financial accounting is concerned with internal users. 
D) Financial accounting is rather detailed, while managerial accounting is more summarized. 
A) Managerial accounting is primarily concerned with reporting the past, while financial accounting is more concerned with future decisions that external users may need to make. 
B) Managerial accounting uses monetary and nonmonetary information, whereas financial accounting reports monetary information. 
C) Managerial accounting is primarily concerned with providing information for external users while financial accounting is concerned with internal users. 
D) Financial accounting is rather detailed, while managerial accounting is more summarized.

Question 8

Many companies have a chief financial officer (CFO).Which of these positions is most likely to report directly to the CFO?

Accepted Answer

A) Controller 
B) Chief executive officer 
C) Janitor 
D) Production supervisor 
A) Controller 
B) Chief executive officer 
C) Janitor 
D) Production supervisor

Question 9

Fixed cost per unit remains the same even though there is a change in the number of units produced.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is likely to be a noncontrollable cost of a department supervisor?

Accepted Answer

A) Labor in the department 
B) Materials used in the department 
C) Insurance on the plant 
D) Overtime premium pay earned by those working in the department 
A) Labor in the department 
B) Materials used in the department 
C) Insurance on the plant 
D) Overtime premium pay earned by those working in the department

Question 11

On which of the following costs should a manager not be evaluated?

Accepted Answer

A) Noncontrollable costs 
B) Opportunity costs 
C) Fixed costs 
D) Variable costs 
A) Noncontrollable costs 
B) Opportunity costs 
C) Fixed costs 
D) Variable costs

Question 12

Incremental analysis involves calculating the difference in revenue and difference in costs between alternatives.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements regarding fixed costs is true?

Accepted Answer

A) When production increases, fixed cost per unit increases. 
B) When production decreases, total fixed costs decrease. 
C) When production increases, fixed cost per unit decreases. 
D) When production decreases, total fixed costs increase. 
A) When production increases, fixed cost per unit increases. 
B) When production decreases, total fixed costs decrease. 
C) When production increases, fixed cost per unit decreases. 
D) When production decreases, total fixed costs increase.

Question 14

Variable cost per unit

Accepted Answer

A) increases when the number of units produced increases. 
B) does not change when the number of units produced increases. 
C) decreases when the number of units produced increases. 
D) decreases when the number of units produced decreases. 
A) increases when the number of units produced increases. 
B) does not change when the number of units produced increases. 
C) decreases when the number of units produced increases. 
D) decreases when the number of units produced decreases.

Question 15

Budgets can be used to communicate a company's goals to employees.

Accepted Answer

A) True 
 B)False

Question 16

Which one of the following is true as it relates to the management function of control?

Accepted Answer

A) It is achieved by evaluating the performance of managers. 
B) It is achieved by evaluating the operations for which a manager is responsible. 
C) It is necessary only when performance is less than expected. 
D) It is achieved by evaluating the performance of managers and the operations for which they are responsible. 
A) It is achieved by evaluating the performance of managers. 
B) It is achieved by evaluating the operations for which a manager is responsible. 
C) It is necessary only when performance is less than expected. 
D) It is achieved by evaluating the performance of managers and the operations for which they are responsible.

Question 17

Which of the following is not a reason that current period performance results may differ from the company's budget for that period?

Accepted Answer

A) The plan may not have been followed properly. 
B) The plan may not have been well thought-out. 
C) Changing circumstances may have made the plan out of date. 
D) All of the above are reasons that actual results may differ from the company's plan. 
A) The plan may not have been followed properly. 
B) The plan may not have been well thought-out. 
C) Changing circumstances may have made the plan out of date. 
D) All of the above are reasons that actual results may differ from the company's plan.

Question 18

Financial accounting is concerned with presenting results of past transactions, while managerial accounting places considerable emphasis on the future.

Accepted Answer

A) True 
 B)False

Question 19

Flash Eyes sells mascara.In June, it produced and sold 10,000 tubes of mascara.Total variable costs were $21,000 and fixed costs totaled $24,000.Which of the following statements is correct if Flash Eyes produced and sold 9,000 units in July?

Accepted Answer

A) Fixed cost per unit will be $2.67 
B) Total fixed costs will be $21,600 
C) Variable costs in total will be $40,500 
D) Variable costs per unit will be $2.33 
A) Fixed cost per unit will be $2.67 
B) Total fixed costs will be $21,600 
C) Variable costs in total will be $40,500 
D) Variable costs per unit will be $2.33

Question 20

Managerial accounting is a key provider of information that impacts the information age.

Accepted Answer

A) True 
 B)False

Which of the following is a benefit given up when one decision alternative is selected over another?

Supply chain management systems (SCM) allow suppliers some access to a company's databases so goods can more profitably be delivered to a company's customers.

The financial plans prepared by managerial accountants are referred to as

Costs incurred in the past that are not incremental to present decisions are

Which of the following is a difference between financial accounting and managerial accounting?

Many companies have a chief financial officer (CFO).Which of these positions is most likely to report directly to the CFO?

Fixed cost per unit remains the same even though there is a change in the number of units produced.

Which of the following is likely to be a noncontrollable cost of a department supervisor?

On which of the following costs should a manager not be evaluated?

Incremental analysis involves calculating the difference in revenue and difference in costs between alternatives.

Which of the following statements regarding fixed costs is true?

Variable cost per unit

Budgets can be used to communicate a company's goals to employees.

Which one of the following is true as it relates to the management function of control?

Which of the following is not a reason that current period performance results may differ from the company's budget for that period?

Financial accounting is concerned with presenting results of past transactions, while managerial accounting places considerable emphasis on the future.

Flash Eyes sells mascara.In June, it produced and sold 10,000 tubes of mascara.Total variable costs were $21,000 and fixed costs totaled $24,000.Which of the following statements is correct if Flash Eyes produced and sold 9,000 units in July?

Managerial accounting is a key provider of information that impacts the information age.

Job-Order Costing for Manufacturing and Service Companies

Process Costing

Cost-Volume-Profit Analysis

Variable Costing

Cost Allocation and Activity-Based Costing

The Use of Cost Information in Management Decision Making

Pricing Decisions

Capital Budgeting Decisions

Budgetary Planning and Control

Standard Costs and Variance Analysis

Decentralization and Performance Evaluation

Statement of Cash Flows

Analyzing Financial Statements: a Managerial Perspective

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Exam 1: Managerial Accounting in the Information Age

Which of the following is a benefit given up when one decision alternative is selected over another?

Supply chain management systems (SCM) allow suppliers some access to a company's databases so goods can more profitably be delivered to a company's customers.

The financial plans prepared by managerial accountants are referred to as

Costs incurred in the past that are not incremental to present decisions are

Which of the following is a difference between financial accounting and managerial accounting?

Many companies have a chief financial officer (CFO).Which of these positions is most likely to report directly to the CFO?

Fixed cost per unit remains the same even though there is a change in the number of units produced.

Which of the following is likely to be a noncontrollable cost of a department supervisor?

On which of the following costs should a manager not be evaluated?

Incremental analysis involves calculating the difference in revenue and difference in costs between alternatives.

Which of the following statements regarding fixed costs is true?

Variable cost per unit

Budgets can be used to communicate a company's goals to employees.

Which one of the following is true as it relates to the management function of control?

Which of the following is not a reason that current period performance results may differ from the company's budget for that period?

Financial accounting is concerned with presenting results of past transactions, while managerial accounting places considerable emphasis on the future.

Flash Eyes sells mascara.In June, it produced and sold 10,000 tubes of mascara.Total variable costs were $21,000 and fixed costs totaled $24,000.Which of the following statements is correct if Flash Eyes produced and sold 9,000 units in July?

Managerial accounting is a key provider of information that impacts the information age.

Job-Order Costing for Manufacturing and Service Companies

Process Costing

Cost-Volume-Profit Analysis

Variable Costing

Cost Allocation and Activity-Based Costing

The Use of Cost Information in Management Decision Making

Pricing Decisions

Capital Budgeting Decisions

Budgetary Planning and Control

Standard Costs and Variance Analysis

Decentralization and Performance Evaluation

Statement of Cash Flows

Analyzing Financial Statements: a Managerial Perspective

Filters