Question 1

Robin Company has the following balances for the current month:  What are Robin's prime costs?

Accepted Answer

A)   $60,800
B)   $56,000
C)   $75,200
D)   $65,600E) B) and C)
F) A) and C)

Question 2

Pinnacle Manufacturing manufactures custom wheel covers. For each cost listed below, place an "X" in all of the appropriate categories.

Accepted Answer

The answer of Pinnacle Manufacturing manufactures custom wheel covers. For...

Question 3

The Sarbanes-Oxley Act of 2002 places full responsibility on the board of directors for the accuracy of the reporting system

Accepted Answer

A) True 
 B)False

Question 4

An opportunity cost is the cost of not doing something

Accepted Answer

A) True 
 B)False

Question 5

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) B) and D)
F) C) and D)

Question 6

Adobe Music Company, which manufactures wooden and metal xylophones, incurred costs for the following items. Place an "X" in the appropriate column to indicate whether they are direct or indirect, and whether they are variable or fixed. The cost object is the xylophones manufactured by the company.

Accepted Answer

The answer of Adobe Music Company, which manufactures wooden and...

Question 7

Which of the following changes introduced by the Sarbanes-Oxley Act is not one intended to encourage good character?

Accepted Answer

A)   Anonymous tip lines
B)   Whistle-blower protection
C)   Code of ethics
D)   Stiffer fines and prison termsE) A) and D)
F) All of the above

Question 8

Financial accounting information is reported for the company as a whole

Accepted Answer

A) True 
 B)False

Question 9

Which of the following functions of management involves taking corrective action if needed?

Accepted Answer

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

Question 10

Which of the following describes the Control function within the management cycle?

Accepted Answer

A)   Setting short and long-term objectives
B)   Comparing actual to budgeted results and taking corrective action
C)   Taking actions to implement the plan
D)   Arranging the necessary resources to carry out the planE) None of the above
F) A) and D)

Question 11

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) B) and D)
F) C) and D)

Question 12

Variable costs are:

Accepted Answer

A)   costs that are not worth the effort to trace to a specific cost object.
B)   costs that change, in total, in direct proportion to changes in activity levels.
C)   always irrelevant.
D)   costs that remain constant no matter the activity level.E) All of the above
F) A) and B)

Question 13

Fixed costs are:

Accepted Answer

A)   costs that are not worth the effort to trace to a specific cost object.
B)   costs that change, in total, in direct proportion to changes in activity levels.
C)   always irrelevant.
D)   costs that remain constant, in total, no matter the activity level.E) A) and B)
F) None of the above

Question 14

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)   Industry
B)   Opportunity
C)   Character
D)   IncentivesE) All of the above
F) B) and D)

Question 15

A sustainable business is one with the ability to meet the needs of today without sacrificing the ability of future generations to meet their own needs

Accepted Answer

A) True 
 B)False

Question 16

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) C) and D)
F) All of the above

Question 17

Parkside Rentals, a firm that rents tuxedos for special events, incurred costs for the following items. Place an "X" in the appropriate column to indicate whether they are direct or indirect, and whether they are variable or fixed. The cost object is tuxedo rentals.

Accepted Answer

The answer of Parkside Rentals, a firm that rents tuxedos...

Question 18

Robin Company has the following balances for the current month:  What is Robin's total manufacturing overhead?

Accepted Answer

A)   $14,400
B)   $28,800
C)   $20,800
D)   $33,600E) A) and B)
F) A) and C)

Question 19

Pretend you are a junior managerial accountant. Your supervisor has no knowledge of sustainability accounting. All of the following statements would be convincing arguments to advocate for the importance of sustainability accounting, except one. Which one?

Accepted Answer

A)   Sustainability accounting reflects the changing nature of accountability.
B)   Companies are only accountable to shareholders… And shareholders care about sustainability.
C)   Companies are accountable to the world at large, not simply to shareholders.
D)   Sustainability accounting does not replace the emphasis on financial results; rather it complements financial strength in building a strong company for the future.E) C) and D)
F) A) and B)

Question 20

Prime costs are the same as:

Accepted Answer

A)   manufacturing costs minus non-manufacturing costs.
B)   manufacturing costs minus manufacturing overhead.
C)   manufacturing costs minus fixed costs.
D)   manufacturing costs minus direct materials.E) B) and D)
F) All of the above

Exam 1: Introduction to Managerial Accounting

Robin Company has the following balances for the current month: What is Robin's total manufacturing overhead?

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Which of the following changes introduced by the Sarbanes-Oxley Act is not one intended to encourage good character?

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

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Parkside Rentals, a firm that rents tuxedos for special events, incurred costs for the following items. Place an "X" in the appropriate column to indicate whether they are direct or indirect, and whether they are variable or fixed. The cost object is tuxedo rentals.

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

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Which of the following functions of management involves taking corrective action if needed?

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An opportunity cost is the cost of not doing something

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Robin Company has the following balances for the current month: What are Robin's prime costs?

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

Correct AnswerverifiedShow Answer

Adobe Music Company, which manufactures wooden and metal xylophones, incurred costs for the following items. Place an "X" in the appropriate column to indicate whether they are direct or indirect, and whether they are variable or fixed. The cost object is the xylophones manufactured by the company.

Correct AnswerverifiedShow Answer

Pinnacle Manufacturing manufactures custom wheel covers. For each cost listed below, place an "X" in all of the appropriate categories.

Correct AnswerverifiedShow Answer

Pretend you are a junior managerial accountant. Your supervisor has no knowledge of sustainability accounting. All of the following statements would be convincing arguments to advocate for the importance of sustainability accounting, except one. Which one?

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Which of the following describes the Control function within the management cycle?

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The Sarbanes-Oxley Act of 2002 places full responsibility on the board of directors for the accuracy of the reporting system

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Prime costs are the same as:

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Fixed costs are:

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A sustainable business is one with the ability to meet the needs of today without sacrificing the ability of future generations to meet their own needs

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

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Variable costs are:

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Financial accounting information is reported for the company as a whole

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