Question 1

Which of the following statements is true?

Accepted Answer

A) The IMA's Statement of Ethical Professional Practice requires management accountants to be incompetent, maintain confidentiality, act with integrity, and communicate information in a fair and credible manner. 
B) The IMA's Statement of Ethical Professional Practice requires management accountants to be competent, maintain confidentiality, eliminate all fraud, and communicate information in a fair and credible manner. 
C) The IMA's Statement of Ethical Professional Practice requires management accountants to be incompetent, maintain confidentiality, act with integrity, and miscommunicate information in a credible manner. 
D) The IMA's Statement of Ethical Professional Practice requires management accountants to be competent, maintain confidentiality, act with integrity, and communicate information in a fair and credible manner. 
E) The IMA's Statement of Ethical Professional Practice requires management accountants to perform certain checks for fraud, act with integrity, and communicate information in a fair and credible manner. 
A) The IMA's Statement of Ethical Professional Practice requires management accountants to be incompetent, maintain confidentiality, act with integrity, and communicate information in a fair and credible manner. 
B) The IMA's Statement of Ethical Professional Practice requires management accountants to be competent, maintain confidentiality, eliminate all fraud, and communicate information in a fair and credible manner. 
C) The IMA's Statement of Ethical Professional Practice requires management accountants to be incompetent, maintain confidentiality, act with integrity, and miscommunicate information in a credible manner. 
D) The IMA's Statement of Ethical Professional Practice requires management accountants to be competent, maintain confidentiality, act with integrity, and communicate information in a fair and credible manner. 
E) The IMA's Statement of Ethical Professional Practice requires management accountants to perform certain checks for fraud, act with integrity, and communicate information in a fair and credible manner.

Question 2

An opportunity cost requires a future cash outlay and is relevant for decision making.

Accepted Answer

A) True 
 B)False

Question 3

The following costs are incurred by a manufacturing company.Classify each cost item as either a period cost or a product cost.If the cost is a product cost, identify it as a prime and/or conversion cost.

Accepted Answer

@#IMG-DLM&_TB6311_00

Question 4

Information for the Ace Manufacturing Company follows:
   Calculate the cost of goods manufactured for this company.

Accepted Answer

@#IMG-DLM&_TB6311_00

Question 5

The salary paid to the supervisor of an assembly line would normally be classified as:

Accepted Answer

A) Direct labor 
B) Indirect labor 
C) A period cost 
D) A general cost 
E) An assembly cost 
A) Direct labor 
B) Indirect labor 
C) A period cost 
D) A general cost 
E) An assembly cost

Question 6

Raw materials used divided by average raw materials inventory is the ____________________.

Accepted Answer

raw materi

Question 7

Use the following information to compute the total manufacturing costs incurred during the period:

Accepted Answer

A) $36,650 
B) $30,950 
C) $30,650 
D) $30,350 
E) $31,650 
A) $36,650 
B) $30,950 
C) $30,650 
D) $30,350 
E) $31,650

Question 8

What is fraud as it relates to the business environment?

Accepted Answer

Fraud involves the use of one'

Question 9

The process of identifying costs as direct or indirect is referred to as classifying costs by _______________.

Accepted Answer

The answer of The process of identifying costs as direct...

Question 10

A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:

Accepted Answer

A) Materiality statement 
B) Managerial statement 
C) Manufacturing statement 
D) Merchandise statement 
E) Monetary statement 
A) Materiality statement 
B) Managerial statement 
C) Manufacturing statement 
D) Merchandise statement 
E) Monetary statement

Question 11

Although direct labor and raw materials costs are treated as manufacturing costs and therefore make up part of the finished goods inventory cost, factory overhead is charged to expense as it is incurred because it is a period cost.

Accepted Answer

A) True 
 B)False

Question 12

Direct materials are not usually easily traced to a product.

Accepted Answer

A) True 
 B)False

Question 13

The way of doing business whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

Accepted Answer

A) Total quality management. 
B) Managerial accounting. 
C) Customer orientation. 
D) Continuous improvement. 
E) Lean business model. 
A) Total quality management. 
B) Managerial accounting. 
C) Customer orientation. 
D) Continuous improvement. 
E) Lean business model.

Question 14

Both financial and managerial accounting affect people's decisions and actions.

Accepted Answer

A) True 
 B)False

Question 15

The management concept of customer orientation encourages a company to set up its production system to produce large quantities of the same product for all customers.

Accepted Answer

A) True 
 B)False

Question 16

Information for Reedy Manufacturing follows:
   Calculate both the cost of goods manufactured and the cost of goods sold for Reedy Manufacturing.

Accepted Answer

The answer of Information for Reedy Manufacturing follows:
  ...

Question 17

Prime costs consist of direct labor and factory overhead.

Accepted Answer

A) True 
 B)False

Question 18

Product costs can be classified as one of three types: direct materials, direct labor, or overhead.

Accepted Answer

A) True 
 B)False

Question 19

Factory overhead costs normally include all of the following except:

Accepted Answer

A) Indirect labor costs 
B) Indirect material costs 
C) Selling costs 
D) Factory machinery oil 
E) Factory rent 
A) Indirect labor costs 
B) Indirect material costs 
C) Selling costs 
D) Factory machinery oil 
E) Factory rent

Question 20

Costs that are first assigned to inventory are called:

Accepted Answer

A) Period costs 
B) Product costs 
C) General costs 
D) Administrative costs 
E) Fixed costs 
A) Period costs 
B) Product costs 
C) General costs 
D) Administrative costs 
E) Fixed costs

Which of the following statements is true?

An opportunity cost requires a future cash outlay and is relevant for decision making.

The following costs are incurred by a manufacturing company.Classify each cost item as either a period cost or a product cost.If the cost is a product cost, identify it as a prime and/or conversion cost.

Information for the Ace Manufacturing Company follows: Calculate the cost of goods manufactured for this company.

The salary paid to the supervisor of an assembly line would normally be classified as:

Raw materials used divided by average raw materials inventory is the ____________________.

Use the following information to compute the total manufacturing costs incurred during the period:

What is fraud as it relates to the business environment?

The process of identifying costs as direct or indirect is referred to as classifying costs by _______________.

A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:

Although direct labor and raw materials costs are treated as manufacturing costs and therefore make up part of the finished goods inventory cost, factory overhead is charged to expense as it is incurred because it is a period cost.

Direct materials are not usually easily traced to a product.

The way of doing business whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

Both financial and managerial accounting affect people's decisions and actions.

The management concept of customer orientation encourages a company to set up its production system to produce large quantities of the same product for all customers.

Information for Reedy Manufacturing follows: Calculate both the cost of goods manufactured and the cost of goods sold for Reedy Manufacturing.

Prime costs consist of direct labor and factory overhead.

Product costs can be classified as one of three types: direct materials, direct labor, or overhead.

Factory overhead costs normally include all of the following except:

Costs that are first assigned to inventory are called:

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

Filters

Exam 1: Managerial Accounting Concepts and Principles

Which of the following statements is true?

An opportunity cost requires a future cash outlay and is relevant for decision making.

The following costs are incurred by a manufacturing company.Classify each cost item as either a period cost or a product cost.If the cost is a product cost, identify it as a prime and/or conversion cost.

Information for the Ace Manufacturing Company follows: Calculate the cost of goods manufactured for this company.

The salary paid to the supervisor of an assembly line would normally be classified as:

Raw materials used divided by average raw materials inventory is the ____________________.

Use the following information to compute the total manufacturing costs incurred during the period:

What is fraud as it relates to the business environment?

The process of identifying costs as direct or indirect is referred to as classifying costs by _______________.

A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:

Although direct labor and raw materials costs are treated as manufacturing costs and therefore make up part of the finished goods inventory cost, factory overhead is charged to expense as it is incurred because it is a period cost.

Direct materials are not usually easily traced to a product.

The way of doing business whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:

Both financial and managerial accounting affect people's decisions and actions.

The management concept of customer orientation encourages a company to set up its production system to produce large quantities of the same product for all customers.

Information for Reedy Manufacturing follows: Calculate both the cost of goods manufactured and the cost of goods sold for Reedy Manufacturing.

Prime costs consist of direct labor and factory overhead.

Product costs can be classified as one of three types: direct materials, direct labor, or overhead.

Factory overhead costs normally include all of the following except:

Costs that are first assigned to inventory are called:

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

Filters