Question 1

In a manufacturing company,an accountant's salary is a value-adding cost.

Accepted Answer

A) True 
 B)False

Question 2

If the report is urgently needed,it is sometimes necessary to sacrifice accuracy in the interest of

Accepted Answer

A) timeliness 
B) personal feelings. 
C) profits. 
D) expectations. 
A) timeliness 
B) personal feelings. 
C) profits. 
D) expectations.

Question 3

Management accounting complements each stage of the management process.

Accepted Answer

A) True 
 B)False

Question 4

The unit of measurement used in management accounting reports is

Accepted Answer

A) primarily the historical dollar. 
B) usually current replacement cost. 
C) any measurement unit that is useful in a particular situation. 
D) the measurement unit used by competing companies. 
A) primarily the historical dollar. 
B) usually current replacement cost. 
C) any measurement unit that is useful in a particular situation. 
D) the measurement unit used by competing companies.

Question 5

Cost of goods manufactured is equal to

Accepted Answer

A) Direct Materials + Direct Labor + Overhead. 
B) Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory. 
C) Beginning Work in Process Inventory + Period Costs - Ending Work in Process Inventory. 
D) Beginning Work in Process Inventory + Product Costs. 
A) Direct Materials + Direct Labor + Overhead. 
B) Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory. 
C) Beginning Work in Process Inventory + Period Costs - Ending Work in Process Inventory. 
D) Beginning Work in Process Inventory + Product Costs.

Question 6

Which of the following is not a reason to classify costs as either product or period costs?

Accepted Answer

A) To determine unit manufacturing costs 
B) To determine if the costs are fixed or variable 
C) To analyze costs for control purposes 
D) To report production costs on the income statement 
A) To determine unit manufacturing costs 
B) To determine if the costs are fixed or variable 
C) To analyze costs for control purposes 
D) To report production costs on the income statement

Question 7

A business plan is a comprehensive statement of how a company will achieve its objectives.

Accepted Answer

A) True 
 B)False

Question 8

Management accountants who alter reports to meet targeted levels of performance are not acting unethically,because their job is to provide information that will aid in communicating the goals of the business.

Accepted Answer

A) True 
 B)False

Question 9

Management accountants are obligated to refrain from activities that would prejudice their ability to carry out their duties.

Accepted Answer

A) True 
 B)False

Question 10

The overall guideline or limit for management accounting information is that the report or analysis must be meaningful and must answer the questions or issues under review.

Accepted Answer

A) True 
 B)False

Question 11

A production cost is classified as an overhead cost if it is not directly traceable to an end product or a cost object.

Accepted Answer

A) True 
 B)False

Question 12

Although some management accountants strive to update their knowledge and skills,such updating is within the realm of management accountants' ethical standards.

Accepted Answer

A) True 
 B)False

Question 13

The fundamental way in which a company will achieve its goal is described in its

Accepted Answer

A) balance sheet and income statement. 
B) cash flow statement. 
C) budget. 
D) mission statement. 
A) balance sheet and income statement. 
B) cash flow statement. 
C) budget. 
D) mission statement.

Question 14

A materials request form is prepared whenever the purchasing department orders materials.

Accepted Answer

A) True 
 B)False

Question 15

Management accounting information demands more objectivity than financial accounting information.

Accepted Answer

A) True 
 B)False

Question 16

The costs of marketing and delivering a product are recorded in the Work in Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 17

Materials costs flow from the Materials Inventory account to the Work in Process Inventory account to the Finished Goods Inventory account.

Accepted Answer

A) True 
 B)False

Question 18

The product costs that appear in the financial statements are estimated product costs.

Accepted Answer

A) True 
 B)False

Question 19

The key to the preparation of an income statement for a manufacturing company is proper determination of the cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following represents normal cost measurement?

Accepted Answer

A) Actual Direct Materials + Actual Direct Labor + Actual Overhead 
B) Actual Direct Materials + Actual Direct Labor + Estimated Overhead 
C) Estimated Direct Materials + Estimated Direct Labor + Actual Overhead 
D) Actual Direct Materials + Estimated Direct Labor + Estimated Overhead 
A) Actual Direct Materials + Actual Direct Labor + Actual Overhead 
B) Actual Direct Materials + Actual Direct Labor + Estimated Overhead 
C) Estimated Direct Materials + Estimated Direct Labor + Actual Overhead 
D) Actual Direct Materials + Estimated Direct Labor + Estimated Overhead

Exam 15: Managerial Accounting and Cost Concepts

In a manufacturing company,an accountant's salary is a value-adding cost.

If the report is urgently needed,it is sometimes necessary to sacrifice accuracy in the interest of

Management accounting complements each stage of the management process.

The unit of measurement used in management accounting reports is

Cost of goods manufactured is equal to

Which of the following is not a reason to classify costs as either product or period costs?

A business plan is a comprehensive statement of how a company will achieve its objectives.

Management accountants who alter reports to meet targeted levels of performance are not acting unethically,because their job is to provide information that will aid in communicating the goals of the business.

Management accountants are obligated to refrain from activities that would prejudice their ability to carry out their duties.

The overall guideline or limit for management accounting information is that the report or analysis must be meaningful and must answer the questions or issues under review.

A production cost is classified as an overhead cost if it is not directly traceable to an end product or a cost object.

Although some management accountants strive to update their knowledge and skills,such updating is within the realm of management accountants' ethical standards.

The fundamental way in which a company will achieve its goal is described in its

A materials request form is prepared whenever the purchasing department orders materials.

Management accounting information demands more objectivity than financial accounting information.

The costs of marketing and delivering a product are recorded in the Work in Process Inventory account.

Materials costs flow from the Materials Inventory account to the Work in Process Inventory account to the Finished Goods Inventory account.

The product costs that appear in the financial statements are estimated product costs.

The key to the preparation of an income statement for a manufacturing company is proper determination of the cost of goods manufactured.

Which of the following represents normal cost measurement?

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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