Question 1

Which of the following documents initiates the purchasing of materials?

Accepted Answer

A) Job order cost sheet 
B) Receiving report 
C) Purchase request 
D) Purchase order 
A) Job order cost sheet 
B) Receiving report 
C) Purchase request 
D) Purchase order

Question 2

Cost of sugar is an indirect cost in the manufacture of candy bars.

Accepted Answer

A) True 
 B)False

Question 3

The reporting format of financial accounting information is based on generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following activities is not a part of the "perform" stage in the management process?

Accepted Answer

A) Producing products as per customer specifications 
B) Manage supply chain relationships 
C) Identifying operating activities that minimize waste 
D) Calculating variances by comparing estimated and actual costs 
A) Producing products as per customer specifications 
B) Manage supply chain relationships 
C) Identifying operating activities that minimize waste 
D) Calculating variances by comparing estimated and actual costs

Question 5

Conversion costs consist of

Accepted Answer

A) direct materials costs and direct labor costs. 
B) direct labor costs and overhead costs. 
C) direct materials costs and overhead costs. 
D) direct labor costs and indirect labor costs. 
A) direct materials costs and direct labor costs. 
B) direct labor costs and overhead costs. 
C) direct materials costs and overhead costs. 
D) direct labor costs and indirect labor costs.

Question 6

Depreciation expense could be

Accepted Answer

A) a period cost. 
B) a product cost. 
C) a fixed cost. 
D) All of these 
A) a period cost. 
B) a product cost. 
C) a fixed cost. 
D) All of these

Question 7

Management accounting data must be expressed in historical dollars.

Accepted Answer

A) True 
 B)False

Question 8

Management accounting is a profession that involves partnering in management decision making.

Accepted Answer

A) True 
 B)False

Question 9

Management accounting accumulates,maintains,and processes an organization's financial and nonfinancial information.

Accepted Answer

A) True 
 B)False

Question 10

Prime costs is the sum of

Accepted Answer

A) the direct labor costs and indirect labor costs. 
B) the direct material costs,direct labor costs,and overhead costs. 
C) the direct labor costs and overhead costs. 
D) the direct materials costs and direct labor costs. 
A) the direct labor costs and indirect labor costs. 
B) the direct material costs,direct labor costs,and overhead costs. 
C) the direct labor costs and overhead costs. 
D) the direct materials costs and direct labor costs.

Question 11

Which of the following costs is considered overhead?

Accepted Answer

A) Indirect labor costs only 
B) Direct materials costs only 
C) Both indirect materials and indirect labor costs 
D) Direct materials and direct labor costs 
A) Indirect labor costs only 
B) Direct materials costs only 
C) Both indirect materials and indirect labor costs 
D) Direct materials and direct labor costs

Question 12

The key to produce an accurate and useful report include identifying the why,who,what,and when of the report.

Accepted Answer

A) True 
 B)False

Question 13

The factory personnel whose wages are traceable directly to a product include

Accepted Answer

A) maintenance personnel. 
B) support personnel. 
C) factory supervisors. 
D) employees who help to shape the product. 
A) maintenance personnel. 
B) support personnel. 
C) factory supervisors. 
D) employees who help to shape the product.

Question 14

Consider the following information: direct materials used totaled $124,700;direct labor amounted to $412,000;overhead was computed to be $789,600;Work in Process Inventory on March 1,2014,was $482,500;and Work in Process Inventory on March 31,2014,was $597,100.What was the cost of goods manufactured?

Accepted Answer

A) $1,211,700 
B) $729,200 
C) $1,440,900 
D) $422,100 
A) $1,211,700 
B) $729,200 
C) $1,440,900 
D) $422,100

Question 15

Steve,the management accountant of a company,is not familiar with the concept of prudence in financial reporting.Which of the following IMA standards is Steve violating?

Accepted Answer

A) Confidentiality 
B) Materiality 
C) Disclosure 
D) Competence 
A) Confidentiality 
B) Materiality 
C) Disclosure 
D) Competence

Question 16

As units are completed,their costs are transferred from the Materials Inventory account to the Finished Goods Inventory account.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following contains period costs?

Accepted Answer

A) Work in Process Inventory 
B) Finished Goods Inventory 
C) Cost of Goods Sold 
D) Selling and administrative expenses 
A) Work in Process Inventory 
B) Finished Goods Inventory 
C) Cost of Goods Sold 
D) Selling and administrative expenses

Question 18

Management accounting exists primarily for the benefit of people inside a company.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a product cost?

Accepted Answer

A) General expenses 
B) Selling expenses 
C) Advertising expenses 
D) Material handling expenses 
A) General expenses 
B) Selling expenses 
C) Advertising expenses 
D) Material handling expenses

Question 20

Recording cost of goods manufactured increases the Work in Process Inventory account.

Accepted Answer

A) True 
 B)False

Exam 15: Managerial Accounting and Cost Concepts

Which of the following documents initiates the purchasing of materials?

Cost of sugar is an indirect cost in the manufacture of candy bars.

The reporting format of financial accounting information is based on generally accepted accounting principles.

Which of the following activities is not a part of the "perform" stage in the management process?

Conversion costs consist of

Depreciation expense could be

Management accounting data must be expressed in historical dollars.

Management accounting is a profession that involves partnering in management decision making.

Management accounting accumulates,maintains,and processes an organization's financial and nonfinancial information.

Prime costs is the sum of

Which of the following costs is considered overhead?

The key to produce an accurate and useful report include identifying the why,who,what,and when of the report.

The factory personnel whose wages are traceable directly to a product include

Steve,the management accountant of a company,is not familiar with the concept of prudence in financial reporting.Which of the following IMA standards is Steve violating?

As units are completed,their costs are transferred from the Materials Inventory account to the Finished Goods Inventory account.

Which of the following contains period costs?

Management accounting exists primarily for the benefit of people inside a company.

Which of the following is a product cost?

Recording cost of goods manufactured increases the Work in Process Inventory account.

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

Filters