Question 1

Robin Company has the following balances for the current month:  What is Robin's total manufacturing cost?

Accepted Answer

A) $115,200 
B) $81,600 
C) $33,600 
D) $60,800

Question 2

Using data to estimate what is likely to occur in the future is an example of:

Accepted Answer

A) predictive analytics. 
B) prescriptive analytics. 
C) descriptive analytics. 
D) diagnostic analytics.

Question 3

Data that is received as events are occurring is an example of:

Accepted Answer

A) volume 
B) velocity 
C) variety 
D) veracity

Question 4

The Sarbanes-Oxley Act of 2002 places full responsibility on the board of directors for the accuracy of the reporting system.

Accepted Answer

A) True 
 B)False

Question 5

To earn summer money,Joe could mow lawns in his neighborhood,or he could work at a local grocery store.Which of the following is an out-of-pocket cost of mowing lawns?

Accepted Answer

A) The use of his father's truck to get to job sites. 
B) The wages he could have earned working at the grocery store. 
C) The time spent mowing the lawns. 
D) Cash paid for gas to run the lawnmower.

Question 6

Which of the following changes introduced by the Sarbanes-Oxley Act is not one intended to encourage good character?

Accepted Answer

A) Anonymous tip lines 
B) Whistle-blower protection 
C) Code of ethics 
D) Stiffer fines and prison terms

Question 7

Product costs are reported:

Accepted Answer

A) only on the balance sheet. 
B) only on the income statement. 
C) on the balance sheet before goods are sold,and on the income statement after goods are sold. 
D) on the income statement before goods are sold,and on the balance sheet after goods are sold.

Question 8

Nonmanufacturing costs are generally classified into what two groups?

Accepted Answer

A) Conversion costs and prime costs 
B) Direct materials and direct labor 
C) Marketing costs and administrative costs 
D) Direct labor and manufacturing overhead

Question 9

Which of the following is not a characteristic of financial accounting?

Accepted Answer

A) Financial reports are prepared according to GAAP. 
B) Information is used by external parties. 
C) Information is subjective,relevant,and future-oriented. 
D) Reports are prepared periodically.

Question 10

Which of the following statements is true about the use of managerial accounting information in nonprofit organizations?

Accepted Answer

A) Universities do not exist strictly to earn profit for shareholders,so managerial accounting information is not vital to their operations. 
B) Unlike other nonprofits,hospitals (which exist with a focus on financial results in addition to health metrics)make use of managerial accounting. 
C) Because managers of nonprofit organizations need timely and relevant information to make decisions,managerial accounting is vital to these organizations. 
D) Because nonprofit organizations-hospitals,educational institutions,charities-do not exist with a profit motive,they do not use managerial accounting principles.

Question 11

Robin Company has the following balances for the current month:  What is Robin's total manufacturing overhead?

Accepted Answer

A) $14,400 
B) $28,800 
C) $20,800 
D) $33,600

Question 12

During the last fiscal year,XYZ organization implemented managerial accounting to allocate program costs to its soup kitchen.The kitchen's manager is reviewing actual results from the prior month to compare the outcomes with the organization's objectives.Which function of the Plan-Implement-Control cycle is she conducting?

Accepted Answer

A) Plan 
B) Implement 
C) Control 
D) Strategize

Question 13

For a cost to be relevant,it must meet which of the following criteria?

Accepted Answer

A) It must not differ between the decision alternatives and it must be incurred in the future rather than in the past. 
B) It must differ between the decision alternatives and it must be incurred in the future rather than in the past. 
C) It must not differ between the decision alternatives and it must have occurred in the past rather than in the future. 
D) It must differ between the decision alternatives and it must have occurred in the past rather than in the future.

Question 14

Parkside Rentals,a firm that rents tuxedos for special events,incurred costs for the following items.Place an "X" in the appropriate column to indicate whether they are direct or indirect,and whether they are variable or fixed.The cost object is tuxedo rentals.

Accepted Answer

The answer of Parkside Rentals,a firm that rents tuxedos for...

Question 15

Which of the following describes the Control function within the management cycle?

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 16

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 17

Cactus Cookies incurred the following costs this month to manufacture 1,000 jumbo chocolate chip cookies.
  Calculate each of the following:
a.The total variable cost this month
b.The total fixed cost this month
c.The variable cost per cookie this month
d.The fixed cost per cookie this month
e.The total variable cost if Cactus Cookies had manufactured 2,000 cookies this month
f.The total fixed cost if Cactus Cookies had manufactured 2,000 cookies this month
g.The variable cost per cookie if Cactus Cookies had manufactured 2,000 cookies this month
h.The fixed cost per cookie if Cactus Cookies had manufactured 2,000 cookies this month

Accepted Answer

The answer of Cactus Cookies incurred the following costs this...

Question 18

Product costs are sometimes called:

Accepted Answer

A) relevant costs. 
B) sunk costs. 
C) differential costs. 
D) inventoriable costs.

Question 19

Melinda's Custom Homes,a construction company that builds custom-designed houses,incurred costs for the following items.Place an "X" in the appropriate column to indicate whether they are direct or indirect,and whether they are variable or fixed.The cost object is the houses built by the company.

Accepted Answer

The answer of Melinda's Custom Homes,a construction company that builds...

Question 20

Adobe Music Company,which manufactures wooden and metal xylophones,incurred costs for the following items.Place an "X" in the appropriate column to indicate whether they are direct or indirect,and whether they are variable or fixed.The cost object is the xylophones manufactured by the company.

Accepted Answer

The answer of Adobe Music Company,which manufactures wooden and metal...

Exam 1: Introduction to Managerial Accounting

Robin Company has the following balances for the current month: What is Robin's total manufacturing cost?