Question 1

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

Accepted Answer

A)  Information is used by external parties.
B)  Information is subjective,relevant,future-oriented.
C)  Reports are prepared as needed.
D)  Information is reported at the decision making level.E) A) and D)
F) None of the above

Question 2

Which of the following is a requirement under the Sarbanes-Oxley Act?

Accepted Answer

A)  Financial statements must be audited by a Big Four accounting firm.
B)  Management must issue a report that indicates whether the financial statements are free of error.
C)  Management must conduct a review of the company's internal control system.
D)  Background checks must be performed on all employees.E) A) and B)
F) All of the above

Question 3

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

Accepted Answer

A)  Information is used by internal parties.
B)  Information is subjective,relevant,future-oriented.
C)  Reports are prepared as needed.
D)  Reports are prepared according to GAAP.E) B) and C)
F) A) and D)

Question 4

Which of the following functions of management involves arranging the necessary resources to carry out the plan?

Accepted Answer

A)  Planning
B)  Organizing
C)  Directing/leading
D)  ControlE) B) and D)
F) C) and D)

Question 5

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.E) C) and D)
F) B) and C)

Question 6

Opportunity cost is the cost of not doing something.An opportunity cost is the foregone benefit of the path not taken - the cost of not doing something.

Accepted Answer

A) True 
 B)False

Question 7

Managerial accounting information includes such items as budgets,performance evaluations,and cost reports.Managerial accounting is used by internal business owners and managers,who need internal information such as budgets,performance evaluations,and cost reports.

Accepted Answer

A) True 
 B)False

Question 8

Fixed costs stay the same,on a per-unit basis,as activity level changes.Fixed costs stay the same,in total,as activity level changes.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not a manufacturing cost?

Accepted Answer

A)  Raw materials cost.
B)  Marketing cost.
C)  Direct labor cost.
D)  Manufacturing overhead cost.E) B) and C)
F) A) and D)

Question 10

A direct cost is one which

Accepted Answer

A)  involves an actual outlay of cash for a specific cost object.
B)  can be traced to a specific cost object.
C)  cannot be traced to a specific cost object.
D)  is not worth the effort of tracing to a specific cost object.E) A) and B)
F) C) and D)

Question 11

The Sarbanes-Oxley Act places responsibility for the accuracy of the reporting system on

Accepted Answer

A)  Accounting managers.
B)  Marketing managers.
C)  Top executives.
D)  All managers.E) A) and B)
F) A) and C)

Question 12

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 primarily by internal parties.
C)  Information is objective,reliable and historical.
D)  Reports are prepared periodically.E) A) and B)
F) None of the above

Question 13

A relevant cost is a cost that

Accepted Answer

A)  has the potential to influence a decision.
B)  changes in direct proportion to changes in activity level.
C)  can be traced to a specific cost object.
D)  is used for control purposes.E) B) and C)
F) All of the above

Question 14

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

Accepted Answer

A)  Information is used by internal parties.
B)  Information is subjective,relevant,future-oriented.
C)  Reports are prepared as needed.
D)  Information is reported for the company as a whole.E) All of the above
F) B) and C)

Question 15

A cost is $50,000 when 25,000 units are produced,and $100,000 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.E) A) and C)
F) All of the above

Question 16

Product costs are

Accepted Answer

A)  expensed on the income statement when incurred.
B)  treated as an asset and depreciated.
C)  inventoried until the units are sold.
D)  considered current liabilities until paiD.Product costs are counted as part of the inventory until the product is sold.E) A) and B)
F) A) and C)

Question 17

Costs can be sorted or categorized in a number of ways including relevant or irrelevant costs.One of the ways that costs can be sorted or categorized is by whether they are relevant or irrelevant.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not a provision of the Sarbanes-Oxley Act?

Accepted Answer

A)  Executives can avoid penalties for fraud by declaring personal bankruptcy.
B)  Stiffer penalties for fraud in terms of monetary fines and jail time.
C)  Public companies must adopt a code of ethics for senior financial officers.
D)  Management must issue a report that indicates whether internal controls are effective at preventing errors and frauD.Executives cannot avoid monetary penalties by declaring personal bankruptcy.E) None of the above
F) B) and C)

Question 19

The directing/leading function provides motivation to achieve results.Directing/leading involves putting the plan into action,and motivating others to work toward the plan's success.

Accepted Answer

A) True 
 B)False

Question 20

The cost of not doing something is a(n)

Accepted Answer

A)  out-of-pocket cost.
B)  opportunity cost.
C)  direct cost.
D)  cost object.E) A) and D)
F) A) and C)

Exam 1: Introduction to Managerial Accounting

Which of the following functions of management involves arranging the necessary resources to carry out the plan?

Correct AnswerverifiedShow Answer

Managerial accounting information includes such items as budgets,performance evaluations,and cost reports.Managerial accounting is used by internal business owners and managers,who need internal information such as budgets,performance evaluations,and cost reports.

Correct AnswerverifiedShow Answer

A cost is $50,000 when 25,000 units are produced,and $100,000 when 50,000 units are produced.This is an example of a(n)

Correct AnswerverifiedShow Answer

Which of the following is not a provision of the Sarbanes-Oxley Act?

Correct AnswerverifiedShow Answer

The cost of not doing something is a(n)

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Costs can be sorted or categorized in a number of ways including relevant or irrelevant costs.One of the ways that costs can be sorted or categorized is by whether they are relevant or irrelevant.

Correct AnswerverifiedShow Answer

The directing/leading function provides motivation to achieve results.Directing/leading involves putting the plan into action,and motivating others to work toward the plan's success.

Correct AnswerverifiedShow Answer

Fixed costs stay the same,on a per-unit basis,as activity level changes.Fixed costs stay the same,in total,as activity level changes.

Correct AnswerverifiedShow Answer

A relevant cost is a cost that

Correct AnswerverifiedShow Answer

A direct cost is one which

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Opportunity cost is the cost of not doing something.An opportunity cost is the foregone benefit of the path not taken - the cost of not doing something.

Correct AnswerverifiedShow Answer

Which of the following is a requirement under the Sarbanes-Oxley Act?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act places responsibility for the accuracy of the reporting system on

Correct AnswerverifiedShow Answer

Which of the following is not a manufacturing cost?

Correct AnswerverifiedShow Answer

Product costs are

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified