Question 1

Which of the following is one of the integrity standards of management accountants?

Accepted Answer

A) Refraining from accepting hospitality gifts from coworkers 
B) Refraining from activities that the company does not actively endorse 
C) Avoiding actual or apparent conflicts of interest 
D) Avoiding only those conflicts of interest that occur between coworkers 
A) Refraining from accepting hospitality gifts from coworkers 
B) Refraining from activities that the company does not actively endorse 
C) Avoiding actual or apparent conflicts of interest 
D) Avoiding only those conflicts of interest that occur between coworkers

Question 2

Woodies Inc.produces wooden desks.Which of the following is not an indirect material for Woodies?

Accepted Answer

A) Wood in a desk 
B) Nails in a desk 
C) Screws in a desk 
D) Lubricants for production machinery 
A) Wood in a desk 
B) Nails in a desk 
C) Screws in a desk 
D) Lubricants for production machinery

Question 3

To calculate the total cost of goods manufactured from total manufacturing costs

Accepted Answer

A) subtract all period costs from total manufacturing costs. 
B) add beginning and subtract ending finished goods inventory to total manufacturing costs. 
C) you must know how many goods were sold during the period. 
D) add beginning and subtract ending work in process inventory to total manufacturing costs. 
A) subtract all period costs from total manufacturing costs. 
B) add beginning and subtract ending finished goods inventory to total manufacturing costs. 
C) you must know how many goods were sold during the period. 
D) add beginning and subtract ending work in process inventory to total manufacturing costs.

Question 4

Which of the following account balances is not reported on the balance sheet?

Accepted Answer

A) Materials Inventory 
B) Manufacturing Patents 
C) Cost of Goods Sold 
D) Work in Process Inventory 
A) Materials Inventory 
B) Manufacturing Patents 
C) Cost of Goods Sold 
D) Work in Process Inventory

Question 5

Financial accounting information is confidential and private.

Accepted Answer

A) True 
 B)False

Question 6

All ethical conflicts are resolved by the accountant of a company.

Accepted Answer

A) True 
 B)False

Question 7

The standard costing method uses the sum of actual direct materials,actual direct labor,and actual overhead to determine the product unit cost.

Accepted Answer

A) True 
 B)False

Question 8

The evaluation stage of management process includes comparing actual with the established standards.

Accepted Answer

A) True 
 B)False

Question 9

The cost of goods manufactured is added to the beginning balance of finished goods inventory to obtain the total cost of goods available for sale.

Accepted Answer

A) True 
 B)False

Question 10

At the end of an accounting period,the balance in the Finished Goods Inventory account is the sum of costs of products completed and the cost of goods sold as of that date.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is the formula used to compute product unit cost?

Accepted Answer

A) (Direct Materials + Direct Labor)/ Number of Units Produced 
B) (Direct Materials + Direct Labor + Overhead)/ Number of Units Produced 
C) (Direct Labor + Overhead)/ Number of Units Produced 
D) (Indirect Materials + Indirect Labor + Overhead)/ Number of Units Produced 
A) (Direct Materials + Direct Labor)/ Number of Units Produced 
B) (Direct Materials + Direct Labor + Overhead)/ Number of Units Produced 
C) (Direct Labor + Overhead)/ Number of Units Produced 
D) (Indirect Materials + Indirect Labor + Overhead)/ Number of Units Produced

Question 12

Managerial accounting's main emphasis is on full and accurate accounting for and disclosure of a company's operating results.

Accepted Answer

A) True 
 B)False

Question 13

Neither the amount of detail nor the format of a management accounting report is affected by those to whom the report is sent.

Accepted Answer

A) True 
 B)False

Question 14

The product is the cost object when assigning indirect product costs.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following types of product costs appear in the financial statements?

Accepted Answer

A) Predetermined overhead costs 
B) Estimated costs 
C) Standard costs 
D) Actual costs 
A) Predetermined overhead costs 
B) Estimated costs 
C) Standard costs 
D) Actual costs

Question 16

The management process and management accounting are identical.

Accepted Answer

A) True 
 B)False

Question 17

Overhead costs are traced to products in the same way that direct materials and direct labor are traced.

Accepted Answer

A) True 
 B)False

Question 18

Management accounting formats are identical for all companies.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is exclusive to a production-oriented company?

Accepted Answer

A) Balance sheet 
B) Statement of cash flows 
C) Income statement 
D) Statement of cost of goods manufactured 
A) Balance sheet 
B) Statement of cash flows 
C) Income statement 
D) Statement of cost of goods manufactured

Question 20

In a manufacturing environment,costs of materials initially flow

Accepted Answer

A) into the Work in Process Inventory account. 
B) into the Materials Inventory account. 
C) into the Cost of Goods Sold account. 
D) into the Finished Goods Inventory account. 
A) into the Work in Process Inventory account. 
B) into the Materials Inventory account. 
C) into the Cost of Goods Sold account. 
D) into the Finished Goods Inventory account.

Exam 15: Managerial Accounting and Cost Concepts

Which of the following is one of the integrity standards of management accountants?

Woodies Inc.produces wooden desks.Which of the following is not an indirect material for Woodies?

To calculate the total cost of goods manufactured from total manufacturing costs

Which of the following account balances is not reported on the balance sheet?

Financial accounting information is confidential and private.

All ethical conflicts are resolved by the accountant of a company.

The standard costing method uses the sum of actual direct materials,actual direct labor,and actual overhead to determine the product unit cost.

The evaluation stage of management process includes comparing actual with the established standards.

The cost of goods manufactured is added to the beginning balance of finished goods inventory to obtain the total cost of goods available for sale.

At the end of an accounting period,the balance in the Finished Goods Inventory account is the sum of costs of products completed and the cost of goods sold as of that date.

Which of the following is the formula used to compute product unit cost?

Managerial accounting's main emphasis is on full and accurate accounting for and disclosure of a company's operating results.

Neither the amount of detail nor the format of a management accounting report is affected by those to whom the report is sent.

The product is the cost object when assigning indirect product costs.

Which of the following types of product costs appear in the financial statements?

The management process and management accounting are identical.

Overhead costs are traced to products in the same way that direct materials and direct labor are traced.

Management accounting formats are identical for all companies.

Which of the following is exclusive to a production-oriented company?

In a manufacturing environment,costs of materials initially flow

Uses of Accounting Information and the Financial Statements

Measurement Concepts: Recording Business Transactions

Measuring Business Income: Adjusting the Accounts

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long-Term Assets

Current Liabilities and Fair Value Accounting

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Costing Systems: Job Order Costing

Costing Systems: Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis

Capital Investment Analysis

Pricing Decisions, including Target Costing and Transfer Pricing

Quality Management and Measurement

Accounting for Unincorporated Businesses

Accounting for Investments

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