Question 1 of 20
5.0 Points
In comparing management accounting with financial accounting, which of the following statements is FALSE?
A. Management accounting is primarily used by managers, employees, and supply chain partners.
B. The report format for financial accounting is based on generally accepted accounting principles.
C. The purpose of management accounting reports is to provide information for planning, control, performance measurement, and decision making.
D. Financial accounting reports are prepared as needed. Reset Selection
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Question 2 of 20
5.0 Points
The unit of measurement used in management accounting is:
A. primarily the future dollar.
B. monetary at historical and current market values.
C. monetary at historical or current market or projected values.
D. the measurement unit used by competing companies. Reset Selection
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Question 3 of 20
5.0 Points
When preparing a report, it is sometimes necessary to sacrifice accuracy for:
A. timeliness.
B. personal feelings.
C. profits.
D. expectations. Reset Selection
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Question 4 of 20
5.0 Points
Primary processes:
A. apply only to a just-in-time environment.
B. include information systems and human resources.
C. add value to a product or service.
D. limit bottlenecks during production. Reset Selection
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Question 5 of 20
5.0 Points
Primary processes are comprised of:accounting.
A. marketing, legal, and accounting services.
B. research and development, marketing, supply, design, production, distribution, and information systems.
C. research and development, design, supply, production, marketing, distribution, and customer service.
D. human resources, legal services, information systems, and management Reset Selection
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Question 6 of 20
5.0 Points
An advantage of value chain analysis is that it allows a company to:
A. evaluate ethical conduct.
B. focus on its core competencies.
C. use the four "w's."
D. increase sales to customers. Reset Selection
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Question 7 of 20
5.0 Points
The just-in-time philosophy emphasizes:
A. completing products on schedule.
B. increasing production.
C. finishing all products before starting new ones.
D. eliminating waste. Reset Selection
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Question 8 of 20
5.0 Points
Activity-based management's primary goal is to reduce:
A. nonvalue-adding costs.
B. defects.
C. inventory size.
D. machine setup time. Reset Selection
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Question 9 of 20
5.0 Points
The balanced scorecard:
A. is rarely used.
B. produces formal reports.
C. only applies to manufacturing companies.
D. links the organization's perspectives with stakeholders. Reset Selection
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Question 10 of 20
5.0 Points
If a management accountant confides to a relative that his or her company has a confidential plan to merge with another company in the near future, the accountant has:
A. not violated ethical standards.
B. violated ethical standards only if the relative owns stock in the company.
C. violated ethical standards because the accountant and relative could stand to gain personally from that information.
D. not violated ethical standards because the information was relayed to a family member. Reset Selection
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Question 11 of 20
5.0 Points
An example of a period cost is:
A. advertising costs.
B. indirect materials.
C. product design costs.
D. direct materials. Reset Selection
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Question 12 of 20
5.0 Points
Which of the following is a value-adding cost?
A. Depreciation on personnel department equipment
B. Depreciation on factory equipment
C. Depreciation on office equipment
D. Depreciation on sales department equipment Reset Selection
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Question 13 of 20
5.0 Points
All manufacturing costs incurred and assigned to products that are being produced are classified as:
A. variable costs.
B. allocated costs.
C. product costs.
D. overhead costs. Reset Selection
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Question 14 of 20
5.0 Points
Which of the following is the formula used to compute a product's unit cost?
A. (Direct Materials + Direct Labor) / Number of Units Produced
B. (Direct Materials + Direct Labor + Overhead) / Number of Units Produced
C. (Direct Labor + Overhead) / Number of Units Produced
D. (Indirect Materials + Indirect Labor + Overhead) / Number of Units Produced Reset Selection
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Question 15 of 20
5.0 Points
In a manufacturing environment, direct labor costs initially flow:
A. into the Materials Inventory account.
B. directly to Cost of Goods Sold.
C. into the Work in Process Inventory account.
D. into the Finished Goods Inventory account. Reset Selection
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Question 16 of 20
5.0 Points
Cost of goods manufactured is equal to:
A. Direct Materials + Direct Labor + Overhead.
B. Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory.
C. Beginning Work in Process Inventory + Period Costs - Ending Work in Process Inventory.
D. Beginning Work in Process Inventory + Product Costs. Reset Selection
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Question 17 of 20
5.0 Points
To reconcile total manufacturing costs with the total cost of goods manufactured during the period:
A. subtract out all period costs from total manufacturing costs to arrive at cost of goods manufactured.
B. add beginning and subtract ending finished goods inventory to total manufacturing costs.
C. you must know how many goods were sold during the period.
D. add beginning and subtract ending work in process inventory to total manufacturing costs. Reset Selection
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Question 18 of 20
5.0 Points
If the estimated cost driver level is overstated, the: predetermined overhead rate will be understated.
A. predetermined overhead rate will be overstated.
B. product cost will be overstated.
C. cost pool will be understated. Reset Selection
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Question 19 of 20
5.0 Points
The activity base that would be most appropriate in a capital-intensive industry is:
A. direct labor dollars.
B. direct labor hours.
C. sales volume.
D. machine hours. Reset Selection
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Question 20 of 20
5.0 Points
In an activity-based costing system, the first step in assigning costs is to:
A. accumulate costs for each activity.
B. identify the appropriate activities for each function.
C. separate nonvalue-adding activities from value-adding activities.
D. analyze all nonvalue-adding activities to determine if they are necessary support areas. Reset Selection
5.0 Points
In comparing management accounting with financial accounting, which of the following statements is FALSE?
A. Management accounting is primarily used by managers, employees, and supply chain partners.
B. The report format for financial accounting is based on generally accepted accounting principles.
C. The purpose of management accounting reports is to provide information for planning, control, performance measurement, and decision making.
D. Financial accounting reports are prepared as needed. Reset Selection
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Question 2 of 20
5.0 Points
The unit of measurement used in management accounting is:
A. primarily the future dollar.
B. monetary at historical and current market values.
C. monetary at historical or current market or projected values.
D. the measurement unit used by competing companies. Reset Selection
Mark for Review What's This?
Question 3 of 20
5.0 Points
When preparing a report, it is sometimes necessary to sacrifice accuracy for:
A. timeliness.
B. personal feelings.
C. profits.
D. expectations. Reset Selection
Mark for Review What's This?
Question 4 of 20
5.0 Points
Primary processes:
A. apply only to a just-in-time environment.
B. include information systems and human resources.
C. add value to a product or service.
D. limit bottlenecks during production. Reset Selection
Mark for Review What's This?
Question 5 of 20
5.0 Points
Primary processes are comprised of:accounting.
A. marketing, legal, and accounting services.
B. research and development, marketing, supply, design, production, distribution, and information systems.
C. research and development, design, supply, production, marketing, distribution, and customer service.
D. human resources, legal services, information systems, and management Reset Selection
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Question 6 of 20
5.0 Points
An advantage of value chain analysis is that it allows a company to:
A. evaluate ethical conduct.
B. focus on its core competencies.
C. use the four "w's."
D. increase sales to customers. Reset Selection
Mark for Review What's This?
Question 7 of 20
5.0 Points
The just-in-time philosophy emphasizes:
A. completing products on schedule.
B. increasing production.
C. finishing all products before starting new ones.
D. eliminating waste. Reset Selection
Mark for Review What's This?
Question 8 of 20
5.0 Points
Activity-based management's primary goal is to reduce:
A. nonvalue-adding costs.
B. defects.
C. inventory size.
D. machine setup time. Reset Selection
Mark for Review What's This?
Question 9 of 20
5.0 Points
The balanced scorecard:
A. is rarely used.
B. produces formal reports.
C. only applies to manufacturing companies.
D. links the organization's perspectives with stakeholders. Reset Selection
Mark for Review What's This?
Question 10 of 20
5.0 Points
If a management accountant confides to a relative that his or her company has a confidential plan to merge with another company in the near future, the accountant has:
A. not violated ethical standards.
B. violated ethical standards only if the relative owns stock in the company.
C. violated ethical standards because the accountant and relative could stand to gain personally from that information.
D. not violated ethical standards because the information was relayed to a family member. Reset Selection
Mark for Review What's This?
Question 11 of 20
5.0 Points
An example of a period cost is:
A. advertising costs.
B. indirect materials.
C. product design costs.
D. direct materials. Reset Selection
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Question 12 of 20
5.0 Points
Which of the following is a value-adding cost?
A. Depreciation on personnel department equipment
B. Depreciation on factory equipment
C. Depreciation on office equipment
D. Depreciation on sales department equipment Reset Selection
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Question 13 of 20
5.0 Points
All manufacturing costs incurred and assigned to products that are being produced are classified as:
A. variable costs.
B. allocated costs.
C. product costs.
D. overhead costs. Reset Selection
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Question 14 of 20
5.0 Points
Which of the following is the formula used to compute a product's unit cost?
A. (Direct Materials + Direct Labor) / Number of Units Produced
B. (Direct Materials + Direct Labor + Overhead) / Number of Units Produced
C. (Direct Labor + Overhead) / Number of Units Produced
D. (Indirect Materials + Indirect Labor + Overhead) / Number of Units Produced Reset Selection
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Question 15 of 20
5.0 Points
In a manufacturing environment, direct labor costs initially flow:
A. into the Materials Inventory account.
B. directly to Cost of Goods Sold.
C. into the Work in Process Inventory account.
D. into the Finished Goods Inventory account. Reset Selection
Mark for Review What's This?
Question 16 of 20
5.0 Points
Cost of goods manufactured is equal to:
A. Direct Materials + Direct Labor + Overhead.
B. Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory.
C. Beginning Work in Process Inventory + Period Costs - Ending Work in Process Inventory.
D. Beginning Work in Process Inventory + Product Costs. Reset Selection
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Question 17 of 20
5.0 Points
To reconcile total manufacturing costs with the total cost of goods manufactured during the period:
A. subtract out all period costs from total manufacturing costs to arrive at cost of goods manufactured.
B. add beginning and subtract ending finished goods inventory to total manufacturing costs.
C. you must know how many goods were sold during the period.
D. add beginning and subtract ending work in process inventory to total manufacturing costs. Reset Selection
Mark for Review What's This?
Question 18 of 20
5.0 Points
If the estimated cost driver level is overstated, the: predetermined overhead rate will be understated.
A. predetermined overhead rate will be overstated.
B. product cost will be overstated.
C. cost pool will be understated. Reset Selection
Mark for Review What's This?
Question 19 of 20
5.0 Points
The activity base that would be most appropriate in a capital-intensive industry is:
A. direct labor dollars.
B. direct labor hours.
C. sales volume.
D. machine hours. Reset Selection
Mark for Review What's This?
Question 20 of 20
5.0 Points
In an activity-based costing system, the first step in assigning costs is to:
A. accumulate costs for each activity.
B. identify the appropriate activities for each function.
C. separate nonvalue-adding activities from value-adding activities.
D. analyze all nonvalue-adding activities to determine if they are necessary support areas. Reset Selection
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