Question 1

Which is not a production cost?

Accepted Answer

A) direct materials 
B) direct labour 
C) selling cost 
D) overhead 
A) direct materials 
B) direct labour 
C) selling cost 
D) overhead C

Question 2

Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon physical observation?

Accepted Answer

A) the wood and upholstery materials that are in the final piece 
B) the labour of the worker assembling the piece of furniture 
C) the depreciation paid on factory equipment 
D) the labour of the woodworker who finishes the wood of the piece 
A) the wood and upholstery materials that are in the final piece 
B) the labour of the worker assembling the piece of furniture 
C) the depreciation paid on factory equipment 
D) the labour of the woodworker who finishes the wood of the piece C

Question 3

What is the term for a cost management subsystem designed to provide accurate and timely feedback concerning the performance of managers and others relative to their planning and control activities?

Accepted Answer

A) cost accounting information system 
B) financial accounting system 
C) operational control information system 
D) tax reporting system 
A) cost accounting information system 
B) financial accounting system 
C) operational control information system 
D) tax reporting system C

Question 4

Information from the records of the Tyler Enterprises for March is as follows:
$$\begin{array} { l r } 
\text { Sales } & \$ 41,000 \
\text { Direct labour } & 10,000 \
\text { Selling and administrative expenses } & 7,000 \
\text { Direct materials purchases } & 6,000 \
\text { Factory averhead } & 13,500
\end{array}$$  $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { Inventories }$
$\begin{array}{lcc}
& \underline{\text { March 1 }}&\underline{\text { March 31}}\
 \text { Direct materials } & \$ 1,200 & \$ 1,400 \
\text { Work in process } & 2,500 & 2,800 \
 \text { Finished goods } & 2,300 & 1,900 \

\end{array}$
-Refer to the figure.What is the gross margin (profit)?

Accepted Answer

A) $4,500 
B) $4,600 
C) $11,500 
D) $11,600 
A) $4,500 
B) $4,600 
C) $11,500 
D) $11,600

Question 5

Which of the following items would NOT be classified as part of factory overhead of a firm that makes sailboats?

Accepted Answer

A) factory supplies used 
B) canvas used in sails 
C) depreciation of factory buildings 
D) indirect materials 
A) factory supplies used 
B) canvas used in sails 
C) depreciation of factory buildings 
D) indirect materials

Question 6

When does cost of goods sold equal cost of goods manufactured?

Accepted Answer

A) when finished goods inventories remain constant 
B) when work-in-process inventories remain constant 
C) when you add beginning work-in-process inventory minus ending work-in-process inventory 
D) when materials inventories remain constant 
A) when finished goods inventories remain constant 
B) when work-in-process inventories remain constant 
C) when you add beginning work-in-process inventory minus ending work-in-process inventory 
D) when materials inventories remain constant

Question 7

In a company that supplies garlic bread to pizza restaurants,which of the following would be considered an input?

Accepted Answer

A) completed product 
B) flour 
C) baking 
D) labour cost of the baker 
A) completed product 
B) flour 
C) baking 
D) labour cost of the baker

Question 8

What is the accounting report that provides feedback by comparing planned data to actual data?

Accepted Answer

A) Budgeting report 
B) Income report 
C) Treasurer report 
D) Performance report 
A) Budgeting report 
B) Income report 
C) Treasurer report 
D) Performance report

Question 9

Selected data concerning the past year's operations of the Beach Corporation are as follows: $$\begin{array} { l r } 
\text { Selling and administrative expenses } & \$ 225,000 \
\text { Direct materials used } & 397,500 \
\text { Direct labour (50,000 hours) } & 450,000 \
\text { Factory overhead application rate } & 8 \text { per DLH }
\end{array}$$  $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { Inventories }$
$\begin{array}{lrr}
&\text { Beginning}&\text { Ending}\
\text { Direct material } & \$ 75,000 & \$ 67,500 \
\text { Work in process } & 112,500 & 135,000 \
\text { Finished goods } & 60,000 & 37,500
\end{array}$
 What is the cost of direct materials purchased?

Accepted Answer

A) $367,500 
B) $390,000 
C) $397,500 
D) $405,000 
A) $367,500 
B) $390,000 
C) $397,500 
D) $405,000

Question 10

According to the Institute of Management Accountants,which of the following sets of standards is included in the standards of ethical conduct for management accountants?

Accepted Answer

A) competence,performance,integrity,and credibility 
B) competence,confidentiality,respect,and credibility 
C) competence,confidentiality,integrity,and observance 
D) competence,confidentiality,integrity,and credibility 
A) competence,performance,integrity,and credibility 
B) competence,confidentiality,respect,and credibility 
C) competence,confidentiality,integrity,and observance 
D) competence,confidentiality,integrity,and credibility

Question 11

What is comparing actual quality costs with planned quality costs an example of?

Accepted Answer

A) planning 
B) controlling 
C) reporting 
D) decision making 
A) planning 
B) controlling 
C) reporting 
D) decision making

Question 12

Assume the following data for Gross,Inc.,for February: $\begin{array}{lr}
\text { Beginning finished goods inventory } & \$ 60,000 \
\text { Beginning work-in-process inventory } & 40,000 \
\text { Ending work-in-process inventory } & 80,000 \
\text { Ending finished goods inventory } & 50,000 \
\text { Factory overhead costs } & 200,000 \
\text { Direct materials used } & 160,000 \
\text { Direct labour } & 100,000
\end{array}$ 
What is the cost of goods manufactured for February?

Accepted Answer

A) $420,000 
B) $430,000 
C) $460,000 
D) $470,000 
A) $420,000 
B) $430,000 
C) $460,000 
D) $470,000

Question 13

In resolving an ethical conflict,which of the following would NOT be appropriate?

Accepted Answer

A) discussing the matter with the chief executive officer 
B) discussing the matter with an external member of the board of directors 
C) taking the matter to the press where there is no legal requirement 
D) resigning from the position because of a conflict 
A) discussing the matter with the chief executive officer 
B) discussing the matter with an external member of the board of directors 
C) taking the matter to the press where there is no legal requirement 
D) resigning from the position because of a conflict

Question 14

Which of the following is a non-value-chain product cost?

Accepted Answer

A) research and development 
B) rework 
C) production 
D) customer service 
A) research and development 
B) rework 
C) production 
D) customer service

Question 15

What is the overall objective of accounting information systems?

Accepted Answer

A) to provide information to users 
B) to manage the organization 
C) to prepare financial reports 
D) to report to the government 
A) to provide information to users 
B) to manage the organization 
C) to prepare financial reports 
D) to report to the government

Question 16

Which of the following statements about world-class firms is true?

Accepted Answer

A) World-class firms are firms that are poor in customer support. 
B) World-class firms are often followers in the market. 
C) World-class firms strive continually to improve product design,manufacture,and delivery. 
D) World-class firms cannot compete with the best of the best in a global environment. 
A) World-class firms are firms that are poor in customer support. 
B) World-class firms are often followers in the market. 
C) World-class firms strive continually to improve product design,manufacture,and delivery. 
D) World-class firms cannot compete with the best of the best in a global environment.

Question 17

Which of the following activities is NOT associated with the cost management information system?

Accepted Answer

A) preparing a cost of quality report 
B) preparing a performance report that compares actual costs to budgeted costs 
C) determining the cost of a customer 
D) using future expected earnings to estimate the price of a share of common stock 
A) preparing a cost of quality report 
B) preparing a performance report that compares actual costs to budgeted costs 
C) determining the cost of a customer 
D) using future expected earnings to estimate the price of a share of common stock

Question 18

What item in a manufacturing firm corresponds most closely to the merchandise inventory in a merchandising business?

Accepted Answer

A) materials inventory 
B) cost of goods available for sale 
C) cost of goods manufactured 
D) finished goods inventory 
A) materials inventory 
B) cost of goods available for sale 
C) cost of goods manufactured 
D) finished goods inventory

Question 19

Which of the following is an example of a period cost?

Accepted Answer

A) insurance on factory equipment 
B) president's salary 
C) property taxes on factory building 
D) wages of factory custodians 
A) insurance on factory equipment 
B) president's salary 
C) property taxes on factory building 
D) wages of factory custodians

Question 20

What is financial accounting information NOT used for?

Accepted Answer

A) investment decisions 
B) regulatory measures 
C) stewardship evaluation 
D) costing products 
A) investment decisions 
B) regulatory measures 
C) stewardship evaluation 
D) costing products

Which is not a production cost?

Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon physical observation?

What is the term for a cost management subsystem designed to provide accurate and timely feedback concerning the performance of managers and others relative to their planning and control activities?

Which of the following items would NOT be classified as part of factory overhead of a firm that makes sailboats?

When does cost of goods sold equal cost of goods manufactured?

In a company that supplies garlic bread to pizza restaurants,which of the following would be considered an input?

What is the accounting report that provides feedback by comparing planned data to actual data?

According to the Institute of Management Accountants,which of the following sets of standards is included in the standards of ethical conduct for management accountants?

What is comparing actual quality costs with planned quality costs an example of?

In resolving an ethical conflict,which of the following would NOT be appropriate?

Which of the following is a non-value-chain product cost?

What is the overall objective of accounting information systems?

Which of the following statements about world-class firms is true?

Which of the following activities is NOT associated with the cost management information system?

What item in a manufacturing firm corresponds most closely to the merchandise inventory in a merchandising business?

Which of the following is an example of a period cost?

What is financial accounting information NOT used for?

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters

Exam 1: A: Basic Cost Management Concepts

Which is not a production cost?

Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon physical observation?

What is the term for a cost management subsystem designed to provide accurate and timely feedback concerning the performance of managers and others relative to their planning and control activities?

Which of the following items would NOT be classified as part of factory overhead of a firm that makes sailboats?

When does cost of goods sold equal cost of goods manufactured?

In a company that supplies garlic bread to pizza restaurants,which of the following would be considered an input?

What is the accounting report that provides feedback by comparing planned data to actual data?

According to the Institute of Management Accountants,which of the following sets of standards is included in the standards of ethical conduct for management accountants?

What is comparing actual quality costs with planned quality costs an example of?

In resolving an ethical conflict,which of the following would NOT be appropriate?

Which of the following is a non-value-chain product cost?

What is the overall objective of accounting information systems?

Which of the following statements about world-class firms is true?

Which of the following activities is NOT associated with the cost management information system?

What item in a manufacturing firm corresponds most closely to the merchandise inventory in a merchandising business?

Which of the following is an example of a period cost?

What is financial accounting information NOT used for?

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters