Question 1

Managerial accounting gathers,summarizes,and reports the cost and revenue data relevant to decisions.

Accepted Answer

A) True 
 B)False  True

Question 2

The CEO of Prairie Machine Parts (PMP)is concerned with the quality of its products and the
amount of resources currently spent on customer returns.The CEO would like to analyze the
costs incurred in conjunction with the quality of the product.
The following information was collected from various departments within the company:
   
Required:
A.Complete the Cost of Quality Report.
B.Do any additional subjective costs appear to be missing from the report?
C.What can be learned from the report?

Accepted Answer

Requirement A:
   
Requirement B:
Because the company has warranty returns and litigation costs it is possible that it has a reputation for poor quality.This may be resulting in lost sales and hence lost profits.
Requirement C:
The Cost of Quality report show that little is being spent on prevention and maintenance.

Question 3

Managerial accounting has its roots in the industrial age of manufacturing.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following cost items should be classified as a prevention cost on a cost of quality report?

Accepted Answer

A) Warranty expenses on defective products 
B) Technical support provided to employees 
C) Supervision of quality inspections 
D) Net cost of spoiled units 
A) Warranty expenses on defective products 
B) Technical support provided to employees 
C) Supervision of quality inspections 
D) Net cost of spoiled units

Question 5

Overseeing the day-to-day operations of a company is an example of the management function of

Accepted Answer

A) controlling. 
B) decision-making. 
C) directing. 
D) planning. 
A) controlling. 
B) decision-making. 
C) directing. 
D) planning.

Question 6

The cost of improved production equipment and production processes is a(n)

Accepted Answer

A) external failure cost. 
B) internal failure cost. 
C) prevention cost. 
D) appraisal cost. 
A) external failure cost. 
B) internal failure cost. 
C) prevention cost. 
D) appraisal cost.

Question 7

The CEO of Yuppie Prepared Meals is concerned about the amount of resources currently spent on customer warranty claims.Each box of snacks is printed with the guarantee: "Satisfaction
guaranteed or your money back." Since the claims are so high,she would like to evaluate
what costs are being incurred to ensure the quality of the product.The following information
was collected from various departments within the company:
   
As the new cost accountant the CEO has requested that you complete the following Cost of Quality Report:

Accepted Answer

@#IMG-DLM&_TB1765_00_TB1765_00

Question 8

The Sarbanes-Oxley Act was designed to hold corporations accountable for internal control and financial reporting functions.

Accepted Answer

A) True 
 B)False

Question 9

Trends in the modern business environment include a shift to a service economy and the rise of the global marketplace.

Accepted Answer

A) True 
 B)False

Question 10

The decision to bill customers electronically,which saves the company money,would be a positive benefit when performing cost-benefit analysis.

Accepted Answer

A) True 
 B)False

Question 11

The cost of downtime caused by quality problems with the raw materials would be classified as a(n)

Accepted Answer

A) prevention cost. 
B) appraisal cost. 
C) internal failure cost. 
D) external failure cost. 
A) prevention cost. 
B) appraisal cost. 
C) internal failure cost. 
D) external failure cost.

Question 12

Using product cost information to determine sales prices is an example of

Accepted Answer

A) controlling,planning,and decision-making. 
B) directing,controlling,and planning. 
C) directing,planning,and decision-making. 
D) controlling,directing,and planning. 
A) controlling,planning,and decision-making. 
B) directing,controlling,and planning. 
C) directing,planning,and decision-making. 
D) controlling,directing,and planning.

Question 13

Technology has been a driving factor in the changing roles of management accountants.

Accepted Answer

A) True 
 B)False

Question 14

The primary goal of managerial accounting is to provide information to

Accepted Answer

A) shareholders. 
B) creditors. 
C) internal decision-makers. 
D) both shareholders and creditors. 
A) shareholders. 
B) creditors. 
C) internal decision-makers. 
D) both shareholders and creditors.

Question 15

Which of the following terms best describes costs incurred to detect poor quality goods or services?

Accepted Answer

A) Appraisal costs 
B) Activity-based costing 
C) Value engineering 
D) Prevention costs 
A) Appraisal costs 
B) Activity-based costing 
C) Value engineering 
D) Prevention costs

Question 16

An example of an appraisal cost is the cost of automating the production process.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following types of accounting is designed to meet the needs of decision-makers inside a company?

Accepted Answer

A) Audit accounting 
B) Financial accounting 
C) Managerial accounting 
D) Tax accounting 
A) Audit accounting 
B) Financial accounting 
C) Managerial accounting 
D) Tax accounting

Question 18

Which term below best describes the quality cost category for "cost of testing food processors before sale"?

Accepted Answer

A) Prevention costs 
B) Appraisal costs 
C) Internal failure costs 
D) External failure costs 
A) Prevention costs 
B) Appraisal costs 
C) Internal failure costs 
D) External failure costs

Question 19

Managerial accountants often work on teams called

Accepted Answer

A) audit teams. 
B) cross-functional teams. 
C) multi-functional teams. 
D) work groups. 
A) audit teams. 
B) cross-functional teams. 
C) multi-functional teams. 
D) work groups.

Question 20

The treasurer and the controller report directly to the CFO.

Accepted Answer

A) True 
 B)False

Managerial accounting gathers,summarizes,and reports the cost and revenue data relevant to decisions.

Managerial accounting has its roots in the industrial age of manufacturing.

Which of the following cost items should be classified as a prevention cost on a cost of quality report?

Overseeing the day-to-day operations of a company is an example of the management function of

The cost of improved production equipment and production processes is a(n)

The Sarbanes-Oxley Act was designed to hold corporations accountable for internal control and financial reporting functions.

Trends in the modern business environment include a shift to a service economy and the rise of the global marketplace.

The decision to bill customers electronically,which saves the company money,would be a positive benefit when performing cost-benefit analysis.

The cost of downtime caused by quality problems with the raw materials would be classified as a(n)

Using product cost information to determine sales prices is an example of

Technology has been a driving factor in the changing roles of management accountants.

The primary goal of managerial accounting is to provide information to

Which of the following terms best describes costs incurred to detect poor quality goods or services?

An example of an appraisal cost is the cost of automating the production process.

Which of the following types of accounting is designed to meet the needs of decision-makers inside a company?

Which term below best describes the quality cost category for "cost of testing food processors before sale"?

Managerial accountants often work on teams called

The treasurer and the controller report directly to the CFO.

Building Blocks of Managerial Accounting

Job Costing

Activity Based Costing

Process Costing

Cost Behaviour

Cost-Volume-Profit Analysis

Short-Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Capital Investment Decisions and the Time Value of Money

Filters

Exam 1: Introduction to Managerial Accounting

Managerial accounting gathers,summarizes,and reports the cost and revenue data relevant to decisions.

Managerial accounting has its roots in the industrial age of manufacturing.

Which of the following cost items should be classified as a prevention cost on a cost of quality report?

Overseeing the day-to-day operations of a company is an example of the management function of

The cost of improved production equipment and production processes is a(n)

The Sarbanes-Oxley Act was designed to hold corporations accountable for internal control and financial reporting functions.

Trends in the modern business environment include a shift to a service economy and the rise of the global marketplace.

The decision to bill customers electronically,which saves the company money,would be a positive benefit when performing cost-benefit analysis.

The cost of downtime caused by quality problems with the raw materials would be classified as a(n)

Using product cost information to determine sales prices is an example of

Technology has been a driving factor in the changing roles of management accountants.

The primary goal of managerial accounting is to provide information to

Which of the following terms best describes costs incurred to detect poor quality goods or services?

An example of an appraisal cost is the cost of automating the production process.

Which of the following types of accounting is designed to meet the needs of decision-makers inside a company?

Which term below best describes the quality cost category for "cost of testing food processors before sale"?

Managerial accountants often work on teams called

The treasurer and the controller report directly to the CFO.

Building Blocks of Managerial Accounting

Job Costing

Activity Based Costing

Process Costing

Cost Behaviour

Cost-Volume-Profit Analysis

Short-Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Capital Investment Decisions and the Time Value of Money

Filters