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| 1 | |
Which of the following is true about the characteristics of managerial accounting? |
| | A) | It is geared toward the need of external users and decision makers. |
| | B) | It is very structured and controlled by GAAP. |
| | C) | It uses many projections and estimates. Historical information is also presented. |
| | D) | It emphasizes the whole organization. |
| | E) | None of the above. |
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| 2 | |
Which of the following would be a common user of managerial accounting information? |
| | A) | Investors. |
| | B) | Creditors. |
| | C) | Analysts. |
| | D) | Regulators. |
| | E) | None of the above. |
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| 3 | |
Which of the following are characteristics of the lean business model? |
| | A) | An increased emphasis on customers as the most important constituent of a business. |
| | B) | The realization that customers expect to derive a certain value for the money they spend to buy products and services. |
| | C) | Companies accept the notion of customer orientation, which means the employees understand the changing needs and wants of their customers and align their management and operating practices accordingly. |
| | D) | All of the above. |
| | E) | None of the above. |
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| 4 | |
An organization can classify costs on the basis of their: |
| | A) | Behavior. |
| | B) | Traceability. |
| | C) | Controllability. |
| | D) | Relevance and function. |
| | E) | All of the above. |
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| 5 | |
Which of the following is true with respect to a variable cost? |
| | A) | It changes in proportion to changes in the volume of activity. |
| | B) | It remains constant even if activity levels change. |
| | C) | It has an inverse relationship to sales and production levels. |
| | D) | Variable costs are not important in manufacturing environments. |
| | E) | None of the above. |
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| 6 | |
Which of the following inventory accounts would be found on a manufacturer's balance sheet? |
| | A) | Goods in Process Inventory. |
| | B) | Raw Materials Inventory. |
| | C) | Finished Goods Inventory. |
| | D) | All of the above. |
| | E) | None of the above. |
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| 7 | |
Which of the following is a characteristic of a direct material cost? |
| | A) | It is a tangible component of a finished product. |
| | B) | It is an expenditure for materials that can be separately and readily traced through the manufacturing process to the finished good. |
| | C) | For a bike, examples would include tires, seat, frame, and handlebars. |
| | D) | The direct materials make up about 45% of manufacturing costs in today's products. |
| | E) | All of the above. |
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| 8 | |
Which of the following is true with respect to factory overhead costs? |
| | A) | They include direct labor and direct materials. |
| | B) | They can be readily traced into the finished products. |
| | C) | They include selling and administrative expenses. |
| | D) | They are classified as product costs. |
| | E) | None of the above. |
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| 9 | |
Earnings of sales personnel who are paid on a commission only basis are which type of cost? |
| | A) | Fixed. |
| | B) | Variable. |
| | C) | Mixed. |
| | D) | Step-wise. |
| | E) | None of the above. |
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| 10 | |
Which of the following is an example of a period cost? |
| | A) | Factory electricity. |
| | B) | Depreciation on the factory equipment. |
| | C) | Salary of the CEO. |
| | D) | Salary of the line worker. |
| | E) | None of the above. |
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| 11 | |
Which of the following is the combination that includes prime costs? |
| | A) | Direct materials and direct labor. |
| | B) | Direct labor and factory overhead. |
| | C) | Factory overhead and indirect labor. |
| | D) | Direct materials and factory overhead. |
| | E) | Indirect materials and direct labor. |
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| 12 | |
A firm had beginning finished goods inventory of $50,000, cost of goods manufactured of $187,500, a gross margin of $200,000, and sales of $350,000. What value was assigned to the ending finished goods inventory? |
| | A) | $150,000. |
| | B) | $100,000. |
| | C) | $237,500. |
| | D) | $ 87,500. |
| | E) | None of the above. |
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| 13 | |
A firm had beginning finished goods inventory of $7,500, ending finished goods inventory of $10,000, and a cost of goods sold of $40,000. What was the cost of goods manufactured? |
| | A) | $30,000. |
| | B) | $32,500. |
| | C) | $37,500. |
| | D) | $40,000. |
| | E) | $42,500. |
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| 14 | |
Direct materials cost is $240,000. Direct labor cost is $120,000. Beginning goods in process were $45,000. Ending goods in process are $60,000. The cost of goods manufactured is $450,000. What are the factory overhead costs? |
| | A) | $ 75,000. |
| | B) | $105,000. |
| | C) | $165,000. |
| | D) | $180,000. |
| | E) | Cannot be determined. |
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| 15 | |
Although there are many types of fraud schemes, all fraud: |
| | A) | Costs the employer money. |
| | B) | Is done to provide direct or indirect benefit to the employer. |
| | C) | Violates the employee's duties to the employer. |
| | D) | A and C. |
| | E) | All of the above. |
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