Question 1

A manufacturing business paid $3,000 to purchase inventory. As a result, assets would increase by $3,000.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following costs is not considered to be a period cost?

Accepted Answer

A)  Warehousing costs 
B)  Depreciation of delivery vehicles 
C)  Salaries paid to company executives 
D)  Freight paid on a purchase of raw materials 
A)  Warehousing costs 
B)  Depreciation of delivery vehicles 
C)  Salaries paid to company executives 
D)  Freight paid on a purchase of raw materials

Question 3

Which of the following types of labor costs will never flow through the balance sheet?

Accepted Answer

A)  Plant supervision 
B)  Sales commissions 
C)  Material handling 
D)  Assembly labor 
A)  Plant supervision 
B)  Sales commissions 
C)  Material handling 
D)  Assembly labor

Question 4

Select the incorrect statement regarding the relationship between type of user and type of information.

Accepted Answer

A)  Middle managers need more nonfinancial, or operational data than do senior executives. 
B)  Assembly line supervisors need more immediate feedback on performance than do senior executives. 
C)  Senior executives need less aggregated information than do lower-level managers. 
D)  Senior executives use general economic information as well as financial information. 
A)  Middle managers need more nonfinancial, or operational data than do senior executives. 
B)  Assembly line supervisors need more immediate feedback on performance than do senior executives. 
C)  Senior executives need less aggregated information than do lower-level managers. 
D)  Senior executives use general economic information as well as financial information.

Question 5

Product costs include materials, labor, and selling and administrative costs.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following most exemplifies the value-added principle?

Accepted Answer

A)  An ongoing process where continuous improvement is the goal 
B)  A competitive management program that emphasizes quality 
C)  Information gathering and reporting activities should be restricted to those activities that add value in excess of their cost. 
D)  Managerial accounting information is measured in economic, physical, and financial terms. 
A)  An ongoing process where continuous improvement is the goal 
B)  A competitive management program that emphasizes quality 
C)  Information gathering and reporting activities should be restricted to those activities that add value in excess of their cost. 
D)  Managerial accounting information is measured in economic, physical, and financial terms.

Question 7

Most internal users of accounting information need primarily global information that reflects the performance of the company as a whole.

Accepted Answer

A) True 
 B)False

Question 8

What is a value chain? And what relationship is there between the value chain and activity-based management?

Accepted Answer

The value chain is the sequence of activ

Question 9

Opportunity, pressure and rationalization are the three elements of the fraud triangle.

Accepted Answer

A) True 
 B)False

Question 10

Is depreciation on manufacturing equipment expensed in the period incurred? Explain why or why not.

Accepted Answer

Depreciation on manufacturing

Question 11

Who are the primary users of financial accounting information? Who are the primary users of managerial accounting information?

Accepted Answer

Financial accounting information is used

Question 12

During its first year of operations, Silverman Company paid $14,000 for direct materials and $19,000 for production workers' wages. Lease payments and utilities on the production facilities amounted to $17,000 while general, selling, and administrative expenses totaled $8,000. The company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit.
What is the amount of finished goods inventory on the balance sheet at year-end?

Accepted Answer

A)  $10,000 
B)  $20,000 
C)  $4,000 
D)  $15,000 
A)  $10,000 
B)  $20,000 
C)  $4,000 
D)  $15,000

Question 13

If a company misclassifies a general, selling and administrative cost as a product cost in a period when production exceeds sales:

Accepted Answer

A)  net income will be overstated. 
B)  total assets will be understated. 
C)  gross margin will be understated. 
D)  Both net income will be overstated and gross margin will be understated. 
A)  net income will be overstated. 
B)  total assets will be understated. 
C)  gross margin will be understated. 
D)  Both net income will be overstated and gross margin will be understated.

Question 14

Managerial accounting information is limited or restricted by which of the following authorities or principles?

Accepted Answer

A)  Securities and Exchange Commission 
B)  Generally Accepted Accounting Principles 
C)  Managerial Accounting Standards Board 
D)  Value-Added Principle 
A)  Securities and Exchange Commission 
B)  Generally Accepted Accounting Principles 
C)  Managerial Accounting Standards Board 
D)  Value-Added Principle

Question 15

All of the following are features of managerial accounting except:

Accepted Answer

A)  information is provided primarily to insiders such as managers. 
B)  information includes economic and non-financial data as well as financial data. 
C)  information is characterized by objectivity, reliability, consistency, and accuracy. 
D)  information is reported continuously with a present or future orientation. 
A)  information is provided primarily to insiders such as managers. 
B)  information includes economic and non-financial data as well as financial data. 
C)  information is characterized by objectivity, reliability, consistency, and accuracy. 
D)  information is reported continuously with a present or future orientation.

Question 16

Benchmarking involves the identification of the best practices used by world-class competitors. Discuss the following widely recognized best practices: activity-based management and just in time inventory.

Accepted Answer

Many companies have come to the conclusi

Question 17

As a Certified Management Accountant, Suzanne is bound by the standards of ethical conduct issued by the Institute of Management Accountants. During the course of business, Suzanne learned that her company has decided to discontinue a major product line. If she mentions this fact to her brother, who is a stockbroker, Suzanne could be in violation of the:

Accepted Answer

A)  competence standard. 
B)  confidentiality standard. 
C)  integrity standard. 
D)  objectivity standard. 
A)  competence standard. 
B)  confidentiality standard. 
C)  integrity standard. 
D)  objectivity standard.

Question 18

Select the incorrect statement regarding service companies.

Accepted Answer

A)  Because service companies do not carry inventory, it is impossible to determine product costs. 
B)  Because the products of service companies are consumed immediately, there is no finished goods inventory on their balance sheets. 
C)  Managers of service companies are expected to control costs, improve quality, and increase productivity just like managers of manufacturing companies. 
D)  Material, labor, and overhead costs of service companies are treated as period costs. 
A)  Because service companies do not carry inventory, it is impossible to determine product costs. 
B)  Because the products of service companies are consumed immediately, there is no finished goods inventory on their balance sheets. 
C)  Managers of service companies are expected to control costs, improve quality, and increase productivity just like managers of manufacturing companies. 
D)  Material, labor, and overhead costs of service companies are treated as period costs.

Question 19

What benefits may result from use of a just in time system?

Accepted Answer

A just in time system reduces the amount

Question 20

The Sarbanes Oxley Act of 2002:

Accepted Answer

A)  prohibits CPA's from becoming managerial accountants. 
B)  created Generally Accepted Accounting principles (GAAP). 
C)  requires the CEO and CFO to defer responsibility for internal controls to external auditors. 
D)  requires management to establish a whistleblower policy. 
A)  prohibits CPA's from becoming managerial accountants. 
B)  created Generally Accepted Accounting principles (GAAP). 
C)  requires the CEO and CFO to defer responsibility for internal controls to external auditors. 
D)  requires management to establish a whistleblower policy.

A manufacturing business paid $3,000 to purchase inventory. As a result, assets would increase by $3,000.

Which of the following costs is not considered to be a period cost?

Which of the following types of labor costs will never flow through the balance sheet?

Select the incorrect statement regarding the relationship between type of user and type of information.

Product costs include materials, labor, and selling and administrative costs.

Which of the following most exemplifies the value-added principle?

Most internal users of accounting information need primarily global information that reflects the performance of the company as a whole.

What is a value chain? And what relationship is there between the value chain and activity-based management?

Opportunity, pressure and rationalization are the three elements of the fraud triangle.

Is depreciation on manufacturing equipment expensed in the period incurred? Explain why or why not.

Who are the primary users of financial accounting information? Who are the primary users of managerial accounting information?

If a company misclassifies a general, selling and administrative cost as a product cost in a period when production exceeds sales:

Managerial accounting information is limited or restricted by which of the following authorities or principles?

All of the following are features of managerial accounting except:

Benchmarking involves the identification of the best practices used by world-class competitors. Discuss the following widely recognized best practices: activity-based management and just in time inventory.

Select the incorrect statement regarding service companies.

What benefits may result from use of a just in time system?

The Sarbanes Oxley Act of 2002:

An Introduction to Accounting

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Internal Controls, Accounting for Cash, and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, Partnerships, and Corporations

Financial Statement Analysis

Cost Behavior, Operating Leverage, and Profitability Analysis

Cost Accumulation, Tracing, and Allocation

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

Filters

Exam 10: An Introduction to Management Accounting

A manufacturing business paid $3,000 to purchase inventory. As a result, assets would increase by $3,000.

Which of the following costs is not considered to be a period cost?

Which of the following types of labor costs will never flow through the balance sheet?

Select the incorrect statement regarding the relationship between type of user and type of information.

Product costs include materials, labor, and selling and administrative costs.

Which of the following most exemplifies the value-added principle?

Most internal users of accounting information need primarily global information that reflects the performance of the company as a whole.

What is a value chain? And what relationship is there between the value chain and activity-based management?

Opportunity, pressure and rationalization are the three elements of the fraud triangle.

Is depreciation on manufacturing equipment expensed in the period incurred? Explain why or why not.

Who are the primary users of financial accounting information? Who are the primary users of managerial accounting information?

If a company misclassifies a general, selling and administrative cost as a product cost in a period when production exceeds sales:

Managerial accounting information is limited or restricted by which of the following authorities or principles?

All of the following are features of managerial accounting except:

Benchmarking involves the identification of the best practices used by world-class competitors. Discuss the following widely recognized best practices: activity-based management and just in time inventory.

Select the incorrect statement regarding service companies.

What benefits may result from use of a just in time system?

The Sarbanes Oxley Act of 2002:

An Introduction to Accounting

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Internal Controls, Accounting for Cash, and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, Partnerships, and Corporations

Financial Statement Analysis

Cost Behavior, Operating Leverage, and Profitability Analysis

Cost Accumulation, Tracing, and Allocation

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

Filters