Question 1

Costs that are not worth the effort to trace to a specific cost object are:

Accepted Answer

A)   opportunity costs.
B)   direct costs.
C)   indirect costs.
D)   irrelevant costs.E) A) and B)
F) A) and C)

Question 2

To earn summer money, Joe could mow lawns in his neighborhood, or he could work at a local grocery store. Which of the following is an out-of-pocket cost of mowing lawns?

Accepted Answer

A)   The use of his father's truck to get to job sites.
B)   The wages he could have earned working at the grocery store.
C)   The time spent mowing the lawns.
D)   Cash paid for gas to run the lawnmower.E) A) and B)
F) None of the above

Question 3

Which of the following types of organizations purchases raw materials from suppliers and uses them to create a finished product?

Accepted Answer

A)   Manufacturing firms
B)   Merchandising companies
C)   Service companies
D)   RetailersE) A) and B)
F) A) and C)

Question 4

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 D)
F) B) and C)

Question 5

Quail Company builds snowboards. Quail Company has reported the following costs for the previous year. Assume no production inventories.  Compute the following:
a. Direct material costs
b. Direct labor cost
c. Manufacturing overhead
d. Total manufacturing cost
e. Prime cost
f. Conversion cost
g. Total period cost

Accepted Answer

a. Direct material costs: $154,000 = $11...

Question 6

Which of the following is not true about how the Sarbanes-Oxley Act emphasizes the importance of the character of managers and employees?

Accepted Answer

A)   It requires that ethics be embedded in the organizational culture.
B)   It requires that audit committees establish anonymous tip lines.
C)   It provides protection for whistle-blowers.
D)   It requires that public companies adopt a code of ethics for senior financial officers.E) A) and C)
F) A) and B) A

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 decrease the incentive to commit fraud.
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) B) and C)
F) None of the above

Question 9

Stetson Manufacturing builds custom wooden cabinets. Classify the following items as to a) what category of product costs and b) whether the item is a prime or conversion cost.

Accepted Answer

The answer of Stetson Manufacturing builds custom wooden cabinets. Classify...

Question 10

Salon de Beauty, a local hair salon, incurred the following costs last month.  Calculate each of the following, where the cost object is customers served:
a. Total variable costs
b. Total fixed costs
c. Total direct costs
d. Total indirect costs

Accepted Answer

a. Total variable costs: $4,180 = $890 +...

Question 11

For each of the following independent cases, compute the missing values:

Accepted Answer

The answer of For each of the following independent cases,...

Question 12

Which of the following functions of management involves setting short and long-term objectives and the tactics to achieve them?

Accepted Answer

A)   Planning
B)   Implementing
C)   Reviewing
D)   ControlE) B) and C)
F) A) and D)

Question 13

For a cost to be relevant, it must:

Accepted Answer

A)   differ between decision alternatives.
B)   have already been incurred.
C)   not influence a decision.
D)   not be a differential cost.E) A) and D)
F) None of the above

Question 14

Which of the following statements concerning costs is incorrect?

Accepted Answer

A)   Costs are treated differently depending on how the information will be used.
B)   Out-of-pocket costs include the costs associated with not taking a particular course of action.
C)   Any single cost can be classified in more than one way.
D)   Costs can be categorized on the basis of relevant or irrelevant costs.E) None of the above
F) All of the above

Question 15

For a cost to be relevant, it must be:

Accepted Answer

A)   a differential cost and a sunk cost.
B)   a differential cost, but not a sunk cost.
C)   a sunk cost, but not a differential cost.
D)   neither a differential cost nor a sunk cost.E) B) and C)
F) B) and D) B

Question 16

Which of the following cannot be an out-of-pocket cost?

Accepted Answer

A)   A direct cost.
B)   An opportunity cost.
C)   A variable cost.
D)   A period cost.E) A) and B)
F) B) and C)

Question 17

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 B)
F) None of the above

Question 18

Managers must direct, lead and motivate during the implementation function

Accepted Answer

A) True 
 B)False

Question 19

Many organizations are building sustainable business practices into their strategies, including by issuing:

Accepted Answer

A)   Corporate social responsibility reports.
B)   Reports on internal controls.
C)   Profit and loss statements that reflect people and planet costs.
D)   Reports from the board of directors on sustainability.E) B) and C)
F) C) and D)

Question 20

Elektra Enterprises manufactures custom boat covers. For each cost listed below, place an "X" in all of the appropriate categories.

Accepted Answer

The answer of Elektra Enterprises manufactures custom boat covers. For...

Exam 1: Introduction to Managerial Accounting

Costs that are not worth the effort to trace to a specific cost object are:

Correct Answer
verified

To earn summer money, Joe could mow lawns in his neighborhood, or he could work at a local grocery store. Which of the following is an out-of-pocket cost of mowing lawns?

Correct Answer
verified

Which of the following types of organizations purchases raw materials from suppliers and uses them to create a finished product?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
a. Direct material costs: $154,000 = $11...
View Answer

Which of the following is not true about how the Sarbanes-Oxley Act emphasizes the importance of the character of managers and employees?

Correct Answer
verified
A

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

Correct Answer
verified

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

Correct Answer
verified

Stetson Manufacturing builds custom wooden cabinets. Classify the following items as to a) what category of product costs and b) whether the item is a prime or conversion cost.

Correct Answer
verified

Salon de Beauty, a local hair salon, incurred the following costs last month. Calculate each of the following, where the cost object is customers served: a. Total variable costs b. Total fixed costs c. Total direct costs d. Total indirect costs

Correct Answer
verified
a. Total variable costs: $4,180 = $890 +...
View Answer

For each of the following independent cases, compute the missing values:

Correct Answer
verified

Which of the following functions of management involves setting short and long-term objectives and the tactics to achieve them?

Correct Answer
verified

For a cost to be relevant, it must:

Correct Answer
verified

Which of the following statements concerning costs is incorrect?

Correct Answer
verified

For a cost to be relevant, it must be:

Correct Answer
verified
B

Which of the following cannot be an out-of-pocket cost?

Correct Answer
verified

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 Answer
verified

Managers must direct, lead and motivate during the implementation function

Correct Answer
verified

Many organizations are building sustainable business practices into their strategies, including by issuing:

Correct Answer
verified

Elektra Enterprises manufactures custom boat covers. For each cost listed below, place an "X" in all of the appropriate categories.

Correct Answer
verified
11eac1bc_02a4_f947_a502_a3c262e68bf2_TB2629_00

Exam 1: Introduction to Managerial Accounting

Costs that are not worth the effort to trace to a specific cost object are:

Correct AnswerverifiedShow Answer

To earn summer money, Joe could mow lawns in his neighborhood, or he could work at a local grocery store. Which of the following is an out-of-pocket cost of mowing lawns?

Correct AnswerverifiedShow Answer

Which of the following types of organizations purchases raw materials from suppliers and uses them to create a finished product?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answerverifieda. Direct material costs: $154,000 = $11...View AnswerShow Answer

Which of the following is not true about how the Sarbanes-Oxley Act emphasizes the importance of the character of managers and employees?

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Stetson Manufacturing builds custom wooden cabinets. Classify the following items as to a) what category of product costs and b) whether the item is a prime or conversion cost.

Correct AnswerverifiedShow Answer

Salon de Beauty, a local hair salon, incurred the following costs last month. Calculate each of the following, where the cost object is customers served: a. Total variable costs b. Total fixed costs c. Total direct costs d. Total indirect costs

Correct Answerverifieda. Total variable costs: $4,180 = $890 +...View AnswerShow Answer

For each of the following independent cases, compute the missing values:

Correct AnswerverifiedShow Answer

Which of the following functions of management involves setting short and long-term objectives and the tactics to achieve them?

Correct AnswerverifiedShow Answer

For a cost to be relevant, it must:

Correct AnswerverifiedShow Answer

Which of the following statements concerning costs is incorrect?

Correct AnswerverifiedShow Answer

For a cost to be relevant, it must be:

Correct AnswerverifiedB

Which of the following cannot be an out-of-pocket cost?

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

Managers must direct, lead and motivate during the implementation function

Correct AnswerverifiedShow Answer

Many organizations are building sustainable business practices into their strategies, including by issuing:

Correct AnswerverifiedShow Answer

Elektra Enterprises manufactures custom boat covers. For each cost listed below, place an "X" in all of the appropriate categories.

Correct Answerverified11eac1bc_02a4_f947_a502_a3c262e68bf2_TB2629_00

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. Direct material costs: $154,000 = $11...
View Answer

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. Total variable costs: $4,180 = $890 +...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
11eac1bc_02a4_f947_a502_a3c262e68bf2_TB2629_00