Question 1

What is Total Quality Management (TQM)?

Accepted Answer

A)  a philosophy of supplying customers with superior products and services 
B)  an exchange of information with suppliers and customers to create efficient and effective processes 
C)  a software system that integrates a company's functions, departments, and data into a single system 
D)  a system that speeds the transformation of raw materials into finished products 
A)  a philosophy of supplying customers with superior products and services 
B)  an exchange of information with suppliers and customers to create efficient and effective processes 
C)  a software system that integrates a company's functions, departments, and data into a single system 
D)  a system that speeds the transformation of raw materials into finished products

Question 2

Managerial accounting information for a company is primarily used by ________.

Accepted Answer

A)  its customers to understand the pricing of the product 
B)  its creditors to understand the credibility of the business 
C)  its employees to plan and control operations 
D)  its investors to make their investment decisions 
A)  its customers to understand the pricing of the product 
B)  its creditors to understand the credibility of the business 
C)  its employees to plan and control operations 
D)  its investors to make their investment decisions

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

Minnetonka,Inc.is a merchandiser of stone ornaments.The company sold 15,600 units during the year.The company has provided the following information: $$\begin{array} { | l | r | } 
\hline \text { Sales Revenue } & \$ 554,000 \
\hline \text { Purchases (excluding Freight In) } & 300,000 \
\hline \text { Selling and Administrative Expenses } & 66,000 \
\hline \text { Freight In } & 14,000 \
\hline \text { Beginning Merchandise Inventory } & 47,000 \
\hline \text { Ending Merchandise Inventory } & 55,500 \
\hline
\end{array}$$ 
What is the unit cost per item sold? (Round your answer to the nearest cent.)

Accepted Answer

A)  $19.58 
B)  $16.57 
C)  $23.14 
D)  $20.13 
A)  $19.58 
B)  $16.57 
C)  $23.14 
D)  $20.13

Question 6

Repair and maintenance costs for manufacturing equipment are product costs.

Accepted Answer

A) True 
 B)False

Question 7

Direct costs and indirect costs can be easily traced directly to a cost object.

Accepted Answer

A) True 
 B)False

Question 8

Amber Corporation has provided the following information of its operating activities for the year:
 $$\begin{array} { | l | r | } 
\hline \text { Merchandise Inventory, January 1 } & \$ 150,000 \
\hline \text { Merchandise Inventory, December 31 } & 75,000 \
\hline \text { Purchases } & 854,000 \
\hline \text { Selling and Administrative Expenses } & 65,000 \
\hline \text { Sales Revenue } & 1,000,000 \
\hline
\end{array}$$ Required: Prepare Amber's income statement for the year ended December 31.Use the format provided below:
 $$\begin{array} { | l | l | l | } 
\hline \text { Sales Revenue } & \quad\quad& \quad\quad\
\hline \text { Cost of Goods Sold } & & \
\hline \text { Beginning Inventory } & & \
\hline \text { Cost of Goods Available for Sale } & & \
\hline \text { Ending Inventory } & & \
\hline \text { Cost of Goods Sold } & & \
\hline \text { Gross Profit } & & \
\hline \text { Selling and Administrative Expenses } & & \
\hline \text { Operating Income } & & \
\hline
\end{array}$$

Accepted Answer

\[  \begin{array} { c } 
\text { Amber C

Question 9

The income statement of a service company will most likely include ________.

Accepted Answer

A)  salaries expense 
B)  factory overhead 
C)  cost of goods sold 
D)  direct materials 
A)  salaries expense 
B)  factory overhead 
C)  cost of goods sold 
D)  direct materials

Question 10

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 community 
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 community 
C)  providing a capital return on the shareholders' investment 
D)  repaying principal and interest to the suppliers

What is Total Quality Management (TQM)?

Managerial accounting information for a company is primarily used by ________.

Which of the following is a part of manufacturing overhead?

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

Repair and maintenance costs for manufacturing equipment are product costs.

Direct costs and indirect costs can be easily traced directly to a cost object.

The income statement of a service company will most likely include ________.

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

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

Exam 18: Introduction to Managerial Accounting

What is Total Quality Management (TQM)?

Managerial accounting information for a company is primarily used by ________.

Which of the following is a part of manufacturing overhead?

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

Repair and maintenance costs for manufacturing equipment are product costs.

Direct costs and indirect costs can be easily traced directly to a cost object.

The income statement of a service company will most likely include ________.

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

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