Question 1

In which of the following ways is the management of a company accountable to its communities?

Accepted Answer

A) making timely interest payments to creditors and dividend payments to investors 
B) ensuring the company's environmental impact is not harmful to its area of operations 
C) providing a capital return on the shareholders' investment 
D) repaying principal and interest to the suppliers 
A) making timely interest payments to creditors and dividend payments to investors 
B) ensuring the company's environmental impact is not harmful to its area of operations 
C) providing a capital return on the shareholders' investment 
D) repaying principal and interest to the suppliers

Question 2

Management of a company is accountable to ________ for obeying laws and paying taxes.

Accepted Answer

A) the natural environment 
B) its asset vendors 
C) the securities exchange 
D) the government 
A) the natural environment 
B) its asset vendors 
C) the securities exchange 
D) the government

Question 3

Merchandising companies, like service companies, do not have a Cost of Goods Sold account.

Accepted Answer

A) True 
 B)False

Question 4

The following information was obtained from Fizz Company:   Calculate Fizz's total product costs.

Accepted Answer

A) $126,000 
B) $104,100 
C) $127,100 
D) $115,000 
A) $126,000 
B) $104,100 
C) $127,100 
D) $115,000

Question 5

All costs incurred in the manufacture of final products are product costs.

Accepted Answer

A) True 
 B)False

Question 6

The IMA Standards of Ethical Practice include confidentiality, competence, credibility, and integrity.

Accepted Answer

A) True 
 B)False

Question 7

Service companies include companies that provide health care, communication, banking, and other important benefits to society.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a part of manufacturing overhead?

Accepted Answer

A) Cost of raw materials 
B) Wages of assembly line workers 
C) Factory insurance 
D) Depreciation on office furniture 
A) Cost of raw materials 
B) Wages of assembly line workers 
C) Factory insurance 
D) Depreciation on office furniture

Question 9

Joshua is the accountant of Seria Inc. Seria has received a bulk order from an overseas client. As a result, the reported earnings of this year will be significantly higher than the estimates of financial analysts. Joshua tells this to one of his friends. Which of the IMA standards has Joshua violated?

Accepted Answer

A) Objectivity 
B) Competence 
C) Confidentiality 
D) Technicality 
A) Objectivity 
B) Competence 
C) Confidentiality 
D) Technicality

Question 10

For a manufacturing business, which of the following would be considered a product cost?

Accepted Answer

A) Depreciation on delivery vehicles 
B) Depreciation on administrative building furniture and fixtures 
C) Depreciation on manufacturing equipment 
D) Depreciation on the accounting department's computer equipment 
A) Depreciation on delivery vehicles 
B) Depreciation on administrative building furniture and fixtures 
C) Depreciation on manufacturing equipment 
D) Depreciation on the accounting department's computer equipment

Question 11

ERP systems can integrate all of a company's functions, departments, and data into a single system.

Accepted Answer

A) True 
 B)False

Question 12

For decision-making purposes, ________ costs are often divided into prime costs and conversion costs.

Accepted Answer

A) fixed costs 
B) product costs 
C) period costs 
D) sunk costs 
A) fixed costs 
B) product costs 
C) period costs 
D) sunk costs

Question 13

Which of the following correctly describes just-in-time (JIT)inventory management?

Accepted Answer

A) It is a production approach that maintains surplus goods at each stage of manufacture. 
B) It is an inventory purchase approach that seeks purchase discounts on buying large quantities. 
C) It is a cost management approach that focuses on maintaining lean inventory levels. 
D) It is an inventory approach which stockpiles raw materials to protect against supply interruptions. 
A) It is a production approach that maintains surplus goods at each stage of manufacture. 
B) It is an inventory purchase approach that seeks purchase discounts on buying large quantities. 
C) It is a cost management approach that focuses on maintaining lean inventory levels. 
D) It is an inventory approach which stockpiles raw materials to protect against supply interruptions.

Question 14

Amber Corporation has provided the following information of its operating activities for 2015:   Required: Prepare Amber's income statement for the year ended December 31, 2015. Use the format provided below:

Accepted Answer

The answer of Amber Corporation has provided the following information...

Question 15

Which of the following will be classified as a conversion cost?

Accepted Answer

A) Cost of raw materials 
B) Depreciation on factory equipment 
C) Salary of sales personnel 
D) Depreciation on office furniture 
A) Cost of raw materials 
B) Depreciation on factory equipment 
C) Salary of sales personnel 
D) Depreciation on office furniture

Question 16

The cost of goods sold for Frye Manufacturing in 2015 was $233,000. The January 1, 2015, finished goods inventory balance was $31,600, and the December 31, 2015, finished goods inventory balance was $24,200. Calculate the cost of goods manufactured during 2015.

Accepted Answer

A) $288,800 
B) $233,000 
C) $225,600 
D) $240,400 
A) $288,800 
B) $233,000 
C) $225,600 
D) $240,400

Question 17

Arturo Manufacturing Company provided the following information for the year 2015:   How much is the cost of goods manufactured?

Accepted Answer

A) $591,000 
B) $607,000 
C) $619,000 
D) $579,000 
A) $591,000 
B) $607,000 
C) $619,000 
D) $579,000

Question 18

Anything for which managers want a separate measurement of cost is called:

Accepted Answer

A) a responsibility center. 
B) a cost object. 
C) a profit object. 
D) a conversion cost. 
A) a responsibility center. 
B) a cost object. 
C) a profit object. 
D) a conversion cost.

Question 19

Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information:   What is the cost of goods available for sale for 2015?

Accepted Answer

A) $360,000 
B) $304,300 
C) $345,000 
D) $330,000 
A) $360,000 
B) $304,300 
C) $345,000 
D) $330,000

Question 20

Amoeba Manufacturing Company provided the following information for the year 2015:   The inventory account balances as of January 1st 2015 are given below.   What is the ending balance in the Raw Materials Inventory account?

Accepted Answer

A) $54,000 
B) $6,000 
C) $111,000 
D) $24,250 
A) $54,000 
B) $6,000 
C) $111,000 
D) $24,250

Exam 18: Introduction to Managerial Accounting

In which of the following ways is the management of a company accountable to its communities?

Management of a company is accountable to ________ for obeying laws and paying taxes.

Merchandising companies, like service companies, do not have a Cost of Goods Sold account.

The following information was obtained from Fizz Company: Calculate Fizz's total product costs.

All costs incurred in the manufacture of final products are product costs.

The IMA Standards of Ethical Practice include confidentiality, competence, credibility, and integrity.

Service companies include companies that provide health care, communication, banking, and other important benefits to society.

Which of the following is a part of manufacturing overhead?

For a manufacturing business, which of the following would be considered a product cost?

ERP systems can integrate all of a company's functions, departments, and data into a single system.

For decision-making purposes, ________ costs are often divided into prime costs and conversion costs.

Which of the following correctly describes just-in-time (JIT)inventory management?

Amber Corporation has provided the following information of its operating activities for 2015: Required: Prepare Amber's income statement for the year ended December 31, 2015. Use the format provided below:

Which of the following will be classified as a conversion cost?

The cost of goods sold for Frye Manufacturing in 2015 was $233,000. The January 1, 2015, finished goods inventory balance was $31,600, and the December 31, 2015, finished goods inventory balance was $24,200. Calculate the cost of goods manufactured during 2015.

Arturo Manufacturing Company provided the following information for the year 2015: How much is the cost of goods manufactured?

Anything for which managers want a separate measurement of cost is called:

Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information: What is the cost of goods available for sale for 2015?

Amoeba Manufacturing Company provided the following information for the year 2015: The inventory account balances as of January 1st 2015 are given below. What is the ending balance in the Raw Materials Inventory account?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters

Amoeba Manufacturing Company provided the following information for the year 2015: The inventory account balances as of January 1^st 2015 are given below. What is the ending balance in the Raw Materials Inventory account?