Question 1

Which of the following functions of management involves comparing actual results with budgeted results?

Accepted Answer

A) Planning 
B) Organizing 
C) Directing/leading 
D) Control

Question 2

Which of the following is a direct cost of manufacturing a table made of wood and glass,for a firm that manufactures furniture?

Accepted Answer

A) The cost of the wood in the table. 
B) The cost of rent on the factory where the table is manufactured. 
C) The salary of the supervisor who oversees all production for the firm. 
D) Depreciation on the tools used to manufacture the table.

Question 3

Which of the following describes the Organizing function of management?

Accepted Answer

A) Setting short and long-term objectives 
B) Comparing actual to budgeted results and taking corrective action if needed 
C) Taking actions to implement the plan 
D) Arranging the necessary resources to carry out the plan

Question 4

Variable costs are

Accepted Answer

A) costs that stay the same,in total,regardless of activity level. 
B) costs that vary inversely,per unit,with the number of units produced. 
C) costs that vary inversely,in total,with the number of units produced. 
D) costs that change,in total,in direct proportion to changes in activity levels.

Question 5

Financial accounting information is reported for the company as a whole.Financial accounting information is provided at the company-wide level.

Accepted Answer

A) True 
 B)False

Question 6

Hair salons and law firms are which of the following type of organization?

Accepted Answer

A) Retailers 
B) Service companies 
C) Manufacturing firms 
D) Merchandising companies

Question 7

Which of the following describes the Planning function of management?

Accepted Answer

A) Setting short and long-term objectives 
B) Comparing actual to budgeted results and taking corrective action 
C) Taking actions to implement the plan 
D) Arranging the necessary resources to carry out the plan

Question 8

Which of the following functions of management involves taking actions to implement the plan?

Accepted Answer

A) Planning 
B) Organizing 
C) Directing/leading 
D) Control

Question 9

Costs that are not worth the effort to trace to a specific cost object are

Accepted Answer

A) opportunity costs. 
B) direct costs. 
C) indirect costs. 
D) irrelevant costs.

Question 10

An indirect cost can be readily traced to a cost object while a direct cost is traced only to manufacturing costs.An indirect cost cannot be readily traced to a cost object.A direct cost can be traced to a specific cost object.It does not necessarily involve manufacturing costs.

Accepted Answer

A) True 
 B)False

Question 11

Indirect costs are

Accepted Answer

A) costs that are not worth the effort to trace to a specific cost object. 
B) costs that change,in total,in direct proportion to changes in activity levels. 
C) always irrelevant. 
D) costs that remain constant no matter the activity level.

Question 12

Which of the following cannot be an out-of-pocket cost?

Accepted Answer

A) A direct cost. 
B) An opportunity cost. 
C) A variable cost. 
D) A period cost.

Question 13

A cost is $50,000 when 25,000 units are produced,and $50,000 when 50,000 units are produced.This is an example of a(n)

Accepted Answer

A) fixed cost. 
B) direct cost. 
C) variable cost. 
D) indirect cost.

Question 14

Which of the following is not true about how the Sarbanes-Oxley Act counteracts incentives for committing fraud?

Accepted Answer

A) It provides for stiffer monetary penalties. 
B) It increases the maximum jail sentence for fraudulent reporting. 
C) It removes legal protection from whistleblowers. 
D) It provides that violators must repay any money obtained via fraud plus pay fines.

Question 15

Which of the following is not one of the categories used to sort costs in managerial accounting?

Accepted Answer

A) Relevant or irrelevant 
B) Variable or fixed 
C) Out-of-pocket or opportunity 
D) Direct or indirect

Question 16

Which of the following describes the Control function of management?

Accepted Answer

A) Setting short and long-term objectives 
B) Comparing actual to budgeted results and taking corrective action 
C) Taking actions to implement the plan 
D) Arranging the necessary resources to carry out the plan

Question 17

When are period costs counted as inventory?

Accepted Answer

A) Before products are sold. 
B) After products are sold. 
C) After products are completed,but before they are sold. 
D) Never.

Question 18

Which of the following does the term "ethics" not refer to?

Accepted Answer

A) The standards of conduct for judging fair from unfair 
B) The standards of conduct for judging right from wrong 
C) The standards of conduct for judging opportunity from incentives 
D) The standards of conduct for judging honest from dishonest

Question 19

The Sarbanes-Oxley Act of 2002 places full responsibility on the board of directors for the accuracy of the reporting system.SOX places more responsibility on all managers (not just accountants)for the accuracy of the reporting system.SOX also places additional responsibilities on the boards of directors and external auditors to reduce the opportunity for errors and fraud.

Accepted Answer

A) True 
 B)False

Question 20

Fixed costs are

Accepted Answer

A) costs that are not worth the effort to trace to a specific cost object. 
B) costs that change,in total,in direct proportion to changes in activity levels. 
C) always irrelevant. 
D) costs that remain constant,in total,no matter the activity level.

Exam 1: Introduction to Managerial Accounting

Which of the following functions of management involves comparing actual results with budgeted results?

Which of the following is a direct cost of manufacturing a table made of wood and glass,for a firm that manufactures furniture?

Which of the following describes the Organizing function of management?

Variable costs are

Financial accounting information is reported for the company as a whole.Financial accounting information is provided at the company-wide level.

Hair salons and law firms are which of the following type of organization?

Which of the following describes the Planning function of management?

Which of the following functions of management involves taking actions to implement the plan?

Costs that are not worth the effort to trace to a specific cost object are

An indirect cost can be readily traced to a cost object while a direct cost is traced only to manufacturing costs.An indirect cost cannot be readily traced to a cost object.A direct cost can be traced to a specific cost object.It does not necessarily involve manufacturing costs.

Indirect costs are

Which of the following cannot be an out-of-pocket cost?

A cost is $50,000 when 25,000 units are produced,and $50,000 when 50,000 units are produced.This is an example of a(n)

Which of the following is not true about how the Sarbanes-Oxley Act counteracts incentives for committing fraud?

Which of the following is not one of the categories used to sort costs in managerial accounting?

Which of the following describes the Control function of management?

When are period costs counted as inventory?

Which of the following does the term "ethics" not refer to?

Fixed costs are