Question 1

Which of the following items would appear on an income statement of a production company and not a service organization?

Accepted Answer

A) selling expenses 
B) cost of goods sold 
C) administrative expenses 
D) gross margin 
A) selling expenses 
B) cost of goods sold 
C) administrative expenses 
D) gross margin

Question 2

Which of the following costs would be included as part of direct labour?

Accepted Answer

A) a welder in the production of shelving 
B) a materials handler 
C) an assembly-line supervisor 
D) a janitor 
A) a welder in the production of shelving 
B) a materials handler 
C) an assembly-line supervisor 
D) a janitor

Question 3

What does the precision of driver tracing depend upon?

Accepted Answer

A) physically observable relationships 
B) allocation estimations 
C) the strength of causal relationships described by the driver 
D) no causal connection 
A) physically observable relationships 
B) allocation estimations 
C) the strength of causal relationships described by the driver 
D) no causal connection

Question 4

Which of the following instructions relates to the credibility section of the IMA Code of Conduct?

Accepted Answer

A) Prepare clear and complete reports. 
B) Communicate professional limitations. 
C) Avoid actual or apparent conflicts of interest. 
D) Communicate information fairly and objectively. 
A) Prepare clear and complete reports. 
B) Communicate professional limitations. 
C) Avoid actual or apparent conflicts of interest. 
D) Communicate information fairly and objectively.

Question 5

Why are cost management reports prepared?

Accepted Answer

A) to meet the needs of decision makers within the firm 
B) to meet stockholders' requests 
C) to meet guidelines prepared by the provincial securities commission 
D) to meet financial accounting standards 
A) to meet the needs of decision makers within the firm 
B) to meet stockholders' requests 
C) to meet guidelines prepared by the provincial securities commission 
D) to meet financial accounting standards

Question 6

What is the term for the managerial activity of comparing actual results with budgeted results?

Accepted Answer

A) control 
B) continuous improvement 
C) planning 
D) decision making 
A) control 
B) continuous improvement 
C) planning 
D) decision making

Question 7

Which of the following statements is NOT true for cost accounting?

Accepted Answer

A) It is concerned with assigning costs to various cost objects. 
B) It attempts to satisfy the costing objectives of both financial accounting and management accounting. 
C) It provides cost information that supports planning,controlling,and decision making. 
D) It is primarily concerned with producing reports for external users. 
A) It is concerned with assigning costs to various cost objects. 
B) It attempts to satisfy the costing objectives of both financial accounting and management accounting. 
C) It provides cost information that supports planning,controlling,and decision making. 
D) It is primarily concerned with producing reports for external users.

Question 8

A performance report is a type of accounting report.What information does a performance report compare?

Accepted Answer

A) planned data with actual data 
B) audited data with actual data 
C) managers' bonuses with performance ratings by supervisors 
D) actual data with industry standards 
A) planned data with actual data 
B) audited data with actual data 
C) managers' bonuses with performance ratings by supervisors 
D) actual data with industry standards

Question 9

Which of the following is NOT significant to the advancement of information technology?

Accepted Answer

A) enterprise resource planning software 
B) emergence of electronic commerce 
C) theory of constraints 
D) decision support systems 
A) enterprise resource planning software 
B) emergence of electronic commerce 
C) theory of constraints 
D) decision support systems

Question 10

What is investigating production variances and adjusting the production process an example of?

Accepted Answer

A) planning 
B) control 
C) internal auditing 
D) decision making 
A) planning 
B) control 
C) internal auditing 
D) decision making

Question 11

What is the definition of direct costs?

Accepted Answer

A) They are incurred for the benefit of the business as a whole. 
B) They continue even if a particular product were discontinued. 
C) They can be assigned to products only by a process of allocation. 
D) They are those costs that can be easily and accurately traced to a cost object. 
A) They are incurred for the benefit of the business as a whole. 
B) They continue even if a particular product were discontinued. 
C) They can be assigned to products only by a process of allocation. 
D) They are those costs that can be easily and accurately traced to a cost object.

Question 12

Which of the following would NOT be included in factory overhead?

Accepted Answer

A) factory supplies 
B) indirect labour 
C) plant foreman's salary 
D) direct materials 
A) factory supplies 
B) indirect labour 
C) plant foreman's salary 
D) direct materials

Question 13

Information from the records of the Scully Company for July was as follows:
$\begin{array}{llr}
  \text { Sales } &\$307,500\
 \text { Selling and administrative expenses } &52,500\
 \text {Direct materials used  } &66,000\
 \text { Direct labour } &75,000\
 \text {  Variable factory overhead} &50,000\
 \text {Factory overhead  } &51,250\
\end{array}$
  $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { Inventories }$
$\begin{array}{lrr}
&\text {July 1}&\text {July 31}\
\text { Direct materials } & \$ 8,000 & \$ 10,500 \
\text { Work in process } & 18,750 & 21,000 \
\text { Finished goods } & 17,250 & 14,250
\end{array}$
 Scully Corporation produced 20,000 units.
-Refer to the figure.What are the total variable costs per unit?

Accepted Answer

A) $6.25 
B) $7.05 
C) $9.55 
D) $12.175 
A) $6.25 
B) $7.05 
C) $9.55 
D) $12.175

Question 14

What is the term for a cost used up in the production of revenues?

Accepted Answer

A) unexpired cost 
B) expense 
C) loss 
D) asset 
A) unexpired cost 
B) expense 
C) loss 
D) asset

Question 15

Managers are considering outsourcing the subcomponents of a product.They collect data about the costs of making the subcomponents in-house.They then seek different bids from suppliers to purchase the subcomponents.What managerial activity applies in this situation?

Accepted Answer

A) controlling 
B) continuous improvement 
C) planning 
D) decision making 
A) controlling 
B) continuous improvement 
C) planning 
D) decision making

Question 16

What is the term for a computerized information system that strives to input data once and to make it available to people across a company for different purposes?

Accepted Answer

A) cost management information system 
B) enterprise resource planning system 
C) internal accounting system 
D) financial accounting information system 
A) cost management information system 
B) enterprise resource planning system 
C) internal accounting system 
D) financial accounting information system

Question 17

What cost management subsystem is designed to assign costs to individual products and services and other objects,as specified by management?

Accepted Answer

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

Question 18

If physical observation cannot be used to identify the exact amount of resources consumed by a cost object,what is the next best approach?

Accepted Answer

A) driver tracing 
B) allocation 
C) estimation 
D) direct costing 
A) driver tracing 
B) allocation 
C) estimation 
D) direct costing

Question 19

Which of the following costs would be included as part of factory overhead?

Accepted Answer

A) depreciation of plant equipment 
B) paint used for product finish 
C) depreciation on the corporation's office building 
D) paper used in the production of books 
A) depreciation of plant equipment 
B) paint used for product finish 
C) depreciation on the corporation's office building 
D) paper used in the production of books

Question 20

Which of the following is NOT provided by cost accountants?

Accepted Answer

A) cost information in accordance with GAAP 
B) cost information about processes and activities 
C) financial information for external users 
D) cost information about products,customers,and services 
A) cost information in accordance with GAAP 
B) cost information about processes and activities 
C) financial information for external users 
D) cost information about products,customers,and services

Which of the following items would appear on an income statement of a production company and not a service organization?

Which of the following costs would be included as part of direct labour?

What does the precision of driver tracing depend upon?

Which of the following instructions relates to the credibility section of the IMA Code of Conduct?

Why are cost management reports prepared?

What is the term for the managerial activity of comparing actual results with budgeted results?

Which of the following statements is NOT true for cost accounting?

A performance report is a type of accounting report.What information does a performance report compare?

Which of the following is NOT significant to the advancement of information technology?

What is investigating production variances and adjusting the production process an example of?

What is the definition of direct costs?

Which of the following would NOT be included in factory overhead?

What is the term for a cost used up in the production of revenues?

Managers are considering outsourcing the subcomponents of a product.They collect data about the costs of making the subcomponents in-house.They then seek different bids from suppliers to purchase the subcomponents.What managerial activity applies in this situation?

What is the term for a computerized information system that strives to input data once and to make it available to people across a company for different purposes?

What cost management subsystem is designed to assign costs to individual products and services and other objects,as specified by management?

If physical observation cannot be used to identify the exact amount of resources consumed by a cost object,what is the next best approach?

Which of the following costs would be included as part of factory overhead?

Which of the following is NOT provided by cost accountants?

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 of the following items would appear on an income statement of a production company and not a service organization?

Which of the following costs would be included as part of direct labour?

What does the precision of driver tracing depend upon?

Which of the following instructions relates to the credibility section of the IMA Code of Conduct?

Why are cost management reports prepared?

What is the term for the managerial activity of comparing actual results with budgeted results?

Which of the following statements is NOT true for cost accounting?

A performance report is a type of accounting report.What information does a performance report compare?

Which of the following is NOT significant to the advancement of information technology?

What is investigating production variances and adjusting the production process an example of?

What is the definition of direct costs?

Which of the following would NOT be included in factory overhead?

What is the term for a cost used up in the production of revenues?

Managers are considering outsourcing the subcomponents of a product.They collect data about the costs of making the subcomponents in-house.They then seek different bids from suppliers to purchase the subcomponents.What managerial activity applies in this situation?

What is the term for a computerized information system that strives to input data once and to make it available to people across a company for different purposes?

What cost management subsystem is designed to assign costs to individual products and services and other objects,as specified by management?

If physical observation cannot be used to identify the exact amount of resources consumed by a cost object,what is the next best approach?

Which of the following costs would be included as part of factory overhead?

Which of the following is NOT provided by cost accountants?

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