Question 1

An out-of-pocket cost involves which of the following?

Accepted Answer

A)  Choosing to do one thing instead of another.
B)  Tracing the cost directly to a cost object.
C)  An actual outlay of cash.
D)  Determining how the cost changes with a change in activity level.E) None of the above
F) All of the above

Question 2

What determines the difference between a direct and an indirect cost?

Accepted Answer

A)  Whether it changes when activity levels change.
B)  Whether it is relevant to a particular decision.
C)  Whether it can be traced to a specific cost object.
D)  Whether it is related to manufacturing or nonmanufacturing activities.E) B) and C)
F) None of the above

Question 3

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

Accepted Answer

A)  Information is reported at the decision making level.
B)  Information is used by external parties.
C)  Information is objective,reliable and historical.
D)  Reports are prepared periodically.E) A) and B)
F) None of the above

Question 4

Which of the following is not one of the factors affecting the accounting reporting environment focused on by the Sarbanes-Oxley Act?

Accepted Answer

A)  Line of business
B)  Opportunity
C)  Character
D)  IncentivesE) B) and D)
F) B) and C)

Question 5

Which of the following functions of management involves providing feedback for future plans?

Accepted Answer

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

Question 6

Which of the following costs is not relevant to the decision whether to replace an old computer with a new one?

Accepted Answer

A)  The cost of the new computer.
B)  The cost of the old computer.
C)  The cost of a service plan on the new computer.
D)  The cost to repair the old computer if a new computer is not purchaseD.The cost of the old computer is a sunk cost.E) None of the above
F) B) and C)

Question 7

Product costs are sometimes called

Accepted Answer

A)  relevant costs.
B)  sunk costs.
C)  differential costs.
D)  inventoriable costs.E) A) and B)
F) A) and D)

Question 8

Conversion costs are the costs to convert direct materials into the finished product.Direct labor and manufacturing overhead are referred to as conversion cost - that is,the total cost required to convert direct materials into the finished product.

Accepted Answer

A) True 
 B)False

Question 9

Managers of small,private corporations use managerial accounting information whereas managers of large,public corporations use financial accounting information.Managerial accounting information is used by managers in all types of organizations: large and small,public and private,profit and nonprofit.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following changes introduced by the Sarbanes-Oxley Act is intended to counteract incentives for fraud?

Accepted Answer

A)  Stronger oversight by directors
B)  Code of ethics
C)  Stiffer fines and prison terms
D)  Anonymous tip linesE) C) and D)
F) A) and D)

Question 11

The control function is comparing actual with budgeted results and taking corrective action when needed.This is the definition of the control function.

Accepted Answer

A) True 
 B)False

Question 12

Fixed costs stay the same,in total,as activity level changes.This is the definition of a fixed cost.

Accepted Answer

A) True 
 B)False

Question 13

A manufacturing firm reports only manufacturing costs.A manufacturing firm reports both manufacturing and nonmanufacturing costs.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Managerial Accounting

The control function is comparing actual with budgeted results and taking corrective action when needed.This is the definition of the control function.

Correct Answer
verified

Which of the following functions of management involves providing feedback for future plans?

Correct Answer
verified

Which of the following costs is not relevant to the decision whether to replace an old computer with a new one?

Correct Answer
verified

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

Correct Answer
verified

Conversion costs are the costs to convert direct materials into the finished product.Direct labor and manufacturing overhead are referred to as conversion cost - that is,the total cost required to convert direct materials into the finished product.

Correct Answer
verified

Correct Answer
verified

Which of the following changes introduced by the Sarbanes-Oxley Act is intended to counteract incentives for fraud?

Correct Answer
verified

A manufacturing firm reports only manufacturing costs.A manufacturing firm reports both manufacturing and nonmanufacturing costs.

Correct Answer
verified

Fixed costs stay the same,in total,as activity level changes.This is the definition of a fixed cost.

Correct Answer
verified

What determines the difference between a direct and an indirect cost?

Correct Answer
verified

Product costs are sometimes called

Correct Answer
verified

Which of the following is not one of the factors affecting the accounting reporting environment focused on by the Sarbanes-Oxley Act?

Correct Answer
verified

An out-of-pocket cost involves which of the following?

Correct Answer
verified

Exam 1: Introduction to Managerial Accounting

The control function is comparing actual with budgeted results and taking corrective action when needed.This is the definition of the control function.

Correct AnswerverifiedShow Answer

Which of the following functions of management involves providing feedback for future plans?

Correct AnswerverifiedShow Answer

Which of the following costs is not relevant to the decision whether to replace an old computer with a new one?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Conversion costs are the costs to convert direct materials into the finished product.Direct labor and manufacturing overhead are referred to as conversion cost - that is,the total cost required to convert direct materials into the finished product.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following changes introduced by the Sarbanes-Oxley Act is intended to counteract incentives for fraud?

Correct AnswerverifiedShow Answer

A manufacturing firm reports only manufacturing costs.A manufacturing firm reports both manufacturing and nonmanufacturing costs.

Correct AnswerverifiedShow Answer

Fixed costs stay the same,in total,as activity level changes.This is the definition of a fixed cost.

Correct AnswerverifiedShow Answer

What determines the difference between a direct and an indirect cost?

Correct AnswerverifiedShow Answer

Product costs are sometimes called

Correct AnswerverifiedShow Answer

Which of the following is not one of the factors affecting the accounting reporting environment focused on by the Sarbanes-Oxley Act?

Correct AnswerverifiedShow Answer

An out-of-pocket cost involves which of the following?

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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