Question 1

The wages and benefits of the factory janitors are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 2

Management accounting is influenced significantly by rules of GAAP and guidelines of the Securities Exchange Commission.

Accepted Answer

A) True 
 B)False

Question 3

Wright Company reports production costs for 2012 as follows:   How much are Wright Company's inventoriable product costs for 2009?

Accepted Answer

A) $925,000 
B) $605,000 
C) $975,000 
D) $1,025,000 
A) $925,000 
B) $605,000 
C) $975,000 
D) $1,025,000

Question 4

Management accounting often requires forward-looking data because of the futuristic nature of many business decisions.

Accepted Answer

A) True 
 B)False

Question 5

Your company is doing well and you tell your sister that the company will report earnings that are significantly higher than the financial analysts' estimated. Which IMA guideline has been violated?

Accepted Answer

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

Question 6

The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.   What is the cost of goods available for sale for 2012?

Accepted Answer

A) $140,000 
B) $126,000 
C) $104,000 
D) $130,000 
A) $140,000 
B) $126,000 
C) $104,000 
D) $130,000

Question 7

Which of the following events would NOT be considered unethical under IMA standards?

Accepted Answer

A) An inventory shipment was received on January 2, but was booked 3 days earlier in order to boost the year-end inventory balance. 
B) An accountant coded an expense to a fixed asset account so that the expense budget would not be overrun at year-end. 
C) A scheduled maintenance service originally planned for late December was delayed until the following year to reduce expenses recorded in the year just ended. 
D) A company shipped products to a customer on January 2, but recorded the transaction on the last day of December to boost revenues in the year just ended. 
A) An inventory shipment was received on January 2, but was booked 3 days earlier in order to boost the year-end inventory balance. 
B) An accountant coded an expense to a fixed asset account so that the expense budget would not be overrun at year-end. 
C) A scheduled maintenance service originally planned for late December was delayed until the following year to reduce expenses recorded in the year just ended. 
D) A company shipped products to a customer on January 2, but recorded the transaction on the last day of December to boost revenues in the year just ended.

Question 8

Harrison Company reports the following cost information for August:   What is the amount of manufacturing overhead incurred by Harrison Company in August?

Accepted Answer

A) $25,300 
B) $61,944 
C) $42,600 
D) $63,900 
A) $25,300 
B) $61,944 
C) $42,600 
D) $63,900

Question 9

Maintaining confidentiality of company information is a key element of ethical professional practice.

Accepted Answer

A) True 
 B)False

Question 10

The total manufacturing costs to account for during the year minus the beginning work in process equals cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) Salaries of salesmen 
B) Salary of the CEO 
C) Salaries of the accounting staff 
D) Salary of the factory security guard 
A) Salaries of salesmen 
B) Salary of the CEO 
C) Salaries of the accounting staff 
D) Salary of the factory security guard

Question 12

Indirect materials costs like lubes and cleaning fluids are product costs.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following applies to the raw materials used by a manufacturing company?

Accepted Answer

A) Materials inventory 
B) Work in process inventory 
C) Merchandise inventory 
D) Finished goods inventory 
A) Materials inventory 
B) Work in process inventory 
C) Merchandise inventory 
D) Finished goods inventory

Question 14

Arturo Manufacturing Company provided the following information for the year 2012:   What was the amount of manufacturing overhead costs?

Accepted Answer

A) $180,000 
B) $156,500 
C) $147,000 
D) $135,000 
A) $180,000 
B) $156,500 
C) $147,000 
D) $135,000

Question 15

Indirect materials costs like lubes and cleaning fluids are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 16

Advertising and marketing costs are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a management approach designed to set higher and higher goals in order to make continuous improvement?

Accepted Answer

A) Supply chain management 
B) Just-in-time (JIT) 
C) Enterprise resource planning 
D) Total quality management 
A) Supply chain management 
B) Just-in-time (JIT) 
C) Enterprise resource planning 
D) Total quality management

Question 18

The wages and benefits of the assembly line workers are product costs.

Accepted Answer

A) True 
 B)False

Question 19

The following information was obtained from Sizzler Company:   How much were Sizzler's period costs?

Accepted Answer

A) $27,690 
B) $7,900 
C) $19,790 
D) $19,000 
A) $27,690 
B) $7,900 
C) $19,790 
D) $19,000

Question 20

Sales commissions are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Exam 16: Introduction to Management Accounting

The wages and benefits of the factory janitors are included in manufacturing overhead.

Management accounting is influenced significantly by rules of GAAP and guidelines of the Securities Exchange Commission.

Wright Company reports production costs for 2012 as follows: How much are Wright Company's inventoriable product costs for 2009?

Management accounting often requires forward-looking data because of the futuristic nature of many business decisions.

Your company is doing well and you tell your sister that the company will report earnings that are significantly higher than the financial analysts' estimated. Which IMA guideline has been violated?

The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012. What is the cost of goods available for sale for 2012?

Which of the following events would NOT be considered unethical under IMA standards?

Harrison Company reports the following cost information for August: What is the amount of manufacturing overhead incurred by Harrison Company in August?

Maintaining confidentiality of company information is a key element of ethical professional practice.

The total manufacturing costs to account for during the year minus the beginning work in process equals cost of goods manufactured.

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

Indirect materials costs like lubes and cleaning fluids are product costs.

Which of the following applies to the raw materials used by a manufacturing company?

Arturo Manufacturing Company provided the following information for the year 2012: What was the amount of manufacturing overhead costs?

Indirect materials costs like lubes and cleaning fluids are included in manufacturing overhead.

Advertising and marketing costs are included in manufacturing overhead.

Which of the following is a management approach designed to set higher and higher goals in order to make continuous improvement?

The wages and benefits of the assembly line workers are product costs.

The following information was obtained from Sizzler Company: How much were Sizzler's period costs?

Sales commissions are included in manufacturing overhead.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandising Inventory

Internal Control and Cash

Receivables

Plant Assets and Intangibles

Current Liabilities and Payroll

Long-Term Liabilities, Bonds Payable, and Classification of Liabilities on the Balance Sheet

Corporations: Paid-In Capital and the Balance Sheet

Corporations: Effects on Retained Earnings and the Income Statement

The Statement of Cash Flows

Financial Statement Analysis

Job Order and Process Costing

Activity-Based Costing and Other Cost Management Tools

Cost-Volume-Profit Analysis

Short-Term Business Decisions

Capital Investment Decisions and the Time Value of Money

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

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