Management accounting
A) Deals primarily with people and organizations outside of the business entity.
B) Requires only periodic reporting on a regular basis.
C) Uses any type of useful measurement unit, including physical as well as monetary measures.
D) Deals only with the double-entry recording system
Which of the following type of information is not
essential for a manger to run a business effectively?
A.
Product
or service costing information
B.
Data
for planning and controlling of operations
C.
Special
reports and analysis to support decisions
D.
Quote
of the current price of the company’s stock
Which of the following would not be included in the
cost of manufactured product?
Cost to ship products to a customer
Cost of factory machinery used in production
Plant supervisor’s salary
Which of the following is not included in the purchase
cost of merchandise inventory?
A.
Purchase
discounts
B.
Overhead
costs
C.
Freight-in
costs
D.
Purchase
returns and allowances
Depreciation expense could be:
A.
A
period cost
B.
A
product cost
C.
A
fixed cost
D.
All
of the above
Production costs appear on the income statement in the
form of:
A.
Costs
of goods sold
B.
Material
inventory
C.
sales
commissions
D.
None
of the above
If there is a debit balance in the Factory payroll
account at the end of the accounting period it represents.
A.
An
amount because applied payroll was greater than actual payroll
B.
An
amount because actual payroll was greater than applied payroll
C.
Labor
costs which have not yet been distributed
D.
An
amount which should be charged to cost of goods sold.
Which of the following accurately describes a
difference between job orders and process costings systems.
A.
In
job order costings systems, overhead costs are treated as product costs,
whereas in process costing systems, overhead costs are treated as period costs.
B.
Job
order costing systems do not need to assign costs to production, whereas
process costing systems do.
C.
In
job order costing systems, costs are traced to products whereas in process
costing systems, a FIFO method may be used.
D.
Since
costs are assigned to products in a job order costing system, selling costs are
treated as product costs in the job order costing system whereas they are
treated as period costs in process costings system.
Which of the following statements is true?
A.
The
work in Process Inventory account is the focal point of process costing.
B.
To
compute unit costs using the FIFO costing method, total costs of direct Materia,
direct labor, and overhead that have been accumulated in the Work in Process
Inventory account or accounts are divided
C.
Equivalent
units usually are computed for direct materials and manufacturing overhead
combined.
D.
Labor
costs are accounted for differently form manufacturing overhead costs in process costing system.
Nonvalue-adding activities are:
A.
Unnecessary
activities
B.
Including
in the value chain of activities
C.
All
wasteful and targeted for elimination
D.
Not
all wasteful and may not be targeted for elimination.
Which of the following would not require the use of
cost behavior analysis?
A.
Transferring
production costs from one department to another
B.
Projecting
anticipated costs of a new project
C.
Buying
an existing business
D.
Changing
an existing product or service.
Which of the following statements is true regarding
fixed and variable costs?
A.
Both
costs are constant when considered on a total basis?
B.
Variable
costs are constant in total, and fixed costs are constant per unit.
C.
Both
costs are constant when considered on a per unit basis
D.
Fixed
costs are constant in total, and variable costs are constant per unit.
Budgets:
A.
Should
contain both revenues and expenses
B.
Contain
as much information as possible
C.
Are
presented in dollars only; nondollar data should be excluded
D.
Are
synonymous with managing and organization.
Budgets identify, gather, summarize and communicate:
A.
Financial
data only
B.
Financial
and nonfinancial data
C.
Nonfinancial
data only
D.
None
of the above
After management has set short-term goals, the
budgeting process typically starts with
A.
A
clearly defined timetable of events
B.
Input
only from the accounting personnel
C.
The
naming of an efficient coordinator or director
D.
A
set of procedures or instructions
Which of the following represents a basic stakeholder
of an organization?
A.
The
account receivable clerk of the organization
B.
The
vice president of the organization
C.
A
line supervisor of the organization
D. All of the above
D. All of the above
Part 2
By balancing all stakeholders’
needs, managers are more likely to achieve their objectives in
A. The long termB. The short term
C. The short term as well as the long term
D. All areas of the organization
Which of the following is an example of a performance measurement?
A. Product quality
B. Number of customer complaints
C. Customer satisfaction
D. All of these choices
B. Number of customer complaints
C. Customer satisfaction
D. All of these choices
Service organizations do not develop standards for
a. labor.
b. overhead.
c. direct materials.
d. any service costs.
Quantitative factors used by decision makers include all of the following except
A. Social issues
B. Competition
C. Annual or projected revenues
D. Timeliness
An example of pricing objective is to
A. Have prices hat top the market
B. Maintain or gain market share
C. Maximize losses
D. Minimize quality and cost
When making the decision on a product's price the manager must consider
1 appraisal costs.
2 costs of nonconformance.
3 costs of conformance.
4 the costs of quality.
a. labor.
b. overhead.
c. direct materials.
d. any service costs.
A standard costing system
A. Is
not typically used by management for cost planning and cost control purposes
B. Is
a system in which all costs affecting the three inventory accounts and the Cost
of Goods Sold account are stated in terms of actual cost incurred
C. Depends
on actual costs rather than planned costs
D. Is
employed with an existing job order costing or process costing system and is
not a full cost accounting system in itself.
Quantitative factors used by decision makers include all of the following except
A. Social issues
B. Competition
C. Annual or projected revenues
D. Timeliness
An example of pricing objective is to
A. Have prices hat top the market
B. Maintain or gain market share
C. Maximize losses
D. Minimize quality and cost
When making the decision on a product's price the manager must consider
A.
All
products at the same time
B.
The
minimum price that will produce a profit
C.
Only
cost-based information
D.
The
product’s total variable costs
All of the following are capital investment decisions,
except whether or not to
A.
Replace
old equipment
B.
Issue
stock to raise capital
C.
Acquire
another company
D.
Add
a new product line
Information captured by a management information system allows managers to do all of the following except
A.
Determine
accurate product or service costs
B.
Improve
processes
C.
Provide
timely feedback
D.
Satisfy
all customer inquiries
How does ERP differ from an MIS?
A.
The
ERP system informally links the different areas of management for specific
purposes
B.
There
is no difference
C.
The
ERP system combines all areas of management into one centralized data warehouse
D.
The
ERP system can be used only in a service business
The overall objective of controlling the costs of quality is to eliminate:1 appraisal costs.
2 costs of nonconformance.
3 costs of conformance.
4 the costs of quality.
Service department costs are allocated so that
A.
Budgeting
purposes are fulfilled
B.
They
can be properly managed
C.
A
business can then assess the profitability of a product or service
D.
They
will have a zero balance at the end of the accounting period.
Joint costs are
A.
Incurred
prior to the separation of joint products
B.
Incurred
after separation of joint products
C.
Incurred
prior and after separation of joint products
D.
None
of the above
Executive’sofficer’s compensation is typically
comprised of all of the following except:
A.
Incentive
bonus
B.
Declared
dividends
C.
Stock
option awards
D.
Annual
base salaries
Financial performance measurement is useful for all of
the following except assessment of
A.
Accounting
methods
B.
Return
by investors
C.
Risk
by creditors
